What does cy/cy mean on a bill of lading?

Bill of lading, which is a transport document evidences receipt of cargo, contract of carriage and represents title of goods, is mostly used in international port-to-port sea shipments.

A bill of lading should normally state the port of loading and port of discharge.

Port of loading is the place where the goods are shipped on board a vessel. Port of discharge is the place where the vessel is off-loaded and the goods are distributed to their respective consignees.

Some bills of lading contain "cy/cy" term in addition to port of loading and port of discharge.

Today I would like to explain the meaning of "cy/cy" term as seen on the bills of lading.

What are the differences between EXW and FCA as per Incoterms 2010?

On my previous article, I have explained the differences between FOB and FCA as per Incoterms 2010 rules

Today I would like to write about the differences between another two frequently used incoterms: EXW and FCA.

Let me start with the definitions of these trade terms in question.
  • EXW (Ex Works) means that the exporter delivers when it places the goods at the disposal of the buyer at the exporter’s premises or at another named place (i.e., works, factory, warehouse, etc.).
  • FCA (Free Carrier) means that the exporter delivers the goods to the carrier or another person nominated by the buyer at the exporter’s premises or another named place.

What are the differences between FOB and FCA as per Incoterms 2010?

FCA( Free Carrier) is a very flexible trade term, which should be preferred instead of EXW (Ex Works) and FOB (Free on Board) incoterms in most situations, because the usage of Ex Works and Free on Board is not suitable for large scale of situations.

For example, frequently exporters and importers use Ex Works trade term, where the exporter handles and pays for the export custom duties. 

But according to Incoterms 2010 rules, importer must arrange the export custom operations under Ex Works trade term, where such clearance is applicable.

In these situations foreign trade parties should use FCA instead of EXW.



ICC recommends FCA instead of FOB in containerized shipments. But why?

FOB (Free on Board) and FCA (Free Carrier) are two well-known and frequently used trade terms of Incoterms 2010.

Both FOB anf FCA have been in circulation for a long period of time, as they been defined under previous versions of Incoterms.

FOB is one of the oldest incoterms, which has been created in 1923. FCA introduced to the export-import world in 1980.

ICC recommends FCA instead of FOB in containerized shipments.

ICC included a warning message in Incoterms 2010, which catches the most practitioners by surprise.

One of the explanatory paragraphs under the FOB rule states that:
FOB may not be appropriate where goods are handed over to the carrier before they are on board the vessel, for example goods in containers, which are typically delivered at a terminal. In such situations, the FCA rule should be used.