---
title: "Type of transport"
description: "The indication whether the carrier or the merchant effects and bears the responsibility for inland transport of cargo in containers."
url: "https://oceancargo.co.uk/shipping-terms/type-of-transport"
date: "2026-04-29T21:08:41+00:00"
language: "en-GB"
---

![Ocean Cargo](https://oceancargo.co.uk/images/GenPics/OCs-Customs-Brokerage.webp)

 # Understanding Inland Transport Responsibility: CY/FO, CY/LO, CY/LI, CY/DO Explained

## Demystifying Inland Transport Acronyms in Freight Forwarding

In the complex world of international shipping, precision in terminology is paramount. For businesses importing or exporting goods, understanding who is responsible for each leg of the journey is crucial for managing costs, mitigating risks, and ensuring smooth operations. At Ocean Cargo, we believe in demystifying these complexities, providing clarity and control to our clients.

One area that often causes confusion revolves around the acronyms used to define responsibility for inland transport of containerised cargo. These terms specify whether the carrier (shipping line) or the merchant (shipper/consignee) handles and bears the cost and risk for the inland leg of the journey. Getting this wrong can lead to unexpected charges, delays, and disputes. This comprehensive guide will break down the key acronyms: CY/FO, CY/LO, CY/LI, and CY/DO, ensuring you're fully equipped to make informed decisions for your global shipments.

Ocean Cargo, with over 25 years of expertise in global logistics, acts as your strategic partner, simplifying complex supply chains and ensuring your cargo reaches its destination efficiently and reliably. Our hands-on, consultative approach means we're always on hand to guide you through these intricacies, whether you're shipping [sea freight to Canada](https://oceancargo.co.uk/countries/canada/sea-freight-canada) or require specialist [excavator transport to the UAE](https://oceancargo.co.uk/countries/uae/excavators-diggers-uae).

## The Core Concept: Carrier vs. Merchant Responsibility

Before diving into the specific acronyms, it's essential to grasp the fundamental distinction: who is responsible for the inland leg? This responsibility dictates who arranges the transport, who pays for it, and who bears the risk of loss or damage during that specific segment.

- **Carrier (Shipping Line) Responsibility:** When the carrier is responsible, they arrange and pay for the inland transport. This is often included in the overall freight rate, offering a more 'all-inclusive' solution for the merchant.
- **Merchant (Shipper/Consignee) Responsibility:** When the merchant is responsible, they must arrange and pay for the inland transport themselves. This requires more coordination but can offer greater control and potentially cost savings if they have established inland transport networks.

These responsibilities are typically defined at specific points in the shipping process, often at the Container Yard (CY) or a designated port facility. Understanding these handover points is key to avoiding unexpected costs and ensuring seamless transitions between different modes of transport.

## Container Yard (CY): The Central Hub

The "CY" in these acronyms stands for Container Yard. This is a crucial location in the logistics chain, typically located at or near a port, where full containers are stored before being loaded onto a vessel or after being discharged from a vessel. It's the primary point for the handover of containers between inland transport and ocean transport.

The subsequent letters (FO, LO, LI, DO) then specify the nature of the inland transport responsibility relative to this Container Yard.

## CY/FO: Container Yard / Free Out

### Definition and Implications

**CY/FO** means "Container Yard / Free Out." In this arrangement, the carrier's responsibility for the cargo ends once the container is delivered to the Container Yard at the port of discharge. From this point onwards, the merchant (consignee) is responsible for all costs and arrangements related to the inland transport from the Container Yard to the final destination.

#### Key Characteristics of CY/FO:

- **Carrier's Scope:** Ocean transport from port of loading to port of discharge (Container Yard).
- **Merchant's Scope:** Inland transport from the Container Yard at the port of discharge to the final delivery point. This includes arranging the truck, paying for the haulage, and managing any associated risks.
- **Cost Implications:** The [Ocean freight](https://oceancargo.co.uk/services/sea-freight "Ocean freight") rate typically covers the sea leg only. Inland transport costs are separate and borne by the consignee.
- **Control:** The consignee has full control over the choice of inland carrier and delivery schedule from the CY.

#### When is CY/FO Used?

CY/FO is common when the consignee has their own established inland transport network, prefers to manage their own logistics from the port, or when the final destination is relatively close to the port, making it cost-effective to arrange local haulage. It's a popular choice for experienced importers who want to optimise their supply chain from the port onwards.

Ocean Cargo can facilitate your [sea freight services](https://oceancargo.co.uk/services/sea-freight/) to the port, and then assist with local arrangements or advise on the best approach for your onward journey, ensuring seamless transitions even when responsibilities shift.

## CY/LO: Container Yard / Liner Out

### Definition and Implications

**CY/LO** stands for "Container Yard / Liner Out." This term is very similar to CY/FO and is often used interchangeably, particularly in older shipping contracts or specific trade lanes. Like CY/FO, it signifies that the carrier's responsibility for the cargo ends once the container is discharged from the vessel and made available at the Container Yard at the port of discharge.

#### Key Characteristics of CY/LO:

- **Carrier's Scope:** Ocean transport from port of loading to port of discharge (Container Yard).
- **Merchant's Scope:** Inland transport from the Container Yard at the port of discharge to the final delivery point.
- **Cost Implications:** Similar to CY/FO, the [Ocean freight](https://oceancargo.co.uk/services/sea-freight "Ocean freight") rate covers the sea leg, and inland costs are separate and borne by the consignee.
- **Control:** The consignee manages the onward journey from the CY.

#### Distinction from CY/FO (if any):

While often synonymous, "Liner Out" can sometimes imply that the carrier covers the cost of discharging the container from the vessel onto the quay, but not necessarily moving it within the Container Yard or beyond. However, in modern practice, the practical implications for the merchant are largely the same as CY/FO: inland transport from the CY is the merchant's responsibility.

When arranging [air freight](https://oceancargo.co.uk/services/air-freight/) or sea freight, Ocean Cargo always clarifies these terms to ensure there are no ambiguities regarding your responsibilities and costs.

## CY/LI: Container Yard / Liner In

### Definition and Implications

**CY/LI** means "Container Yard / Liner In." This term relates to the origin side of the shipment. It signifies that the carrier's responsibility for the cargo begins once the container is delivered by the merchant to the Container Yard at the port of loading. The merchant (shipper) is responsible for all costs and arrangements related to the inland transport from their premises to the Container Yard at the port of loading.

#### Key Characteristics of CY/LI:

- **Merchant's Scope (Origin):** Inland transport from the shipper's warehouse to the Container Yard at the port of loading. This includes arranging the truck, paying for haulage, and managing risks.
- **Carrier's Scope:** Ocean transport from the port of loading (from the CY) to the port of discharge.
- **Cost Implications:** The [Ocean freight](https://oceancargo.co.uk/services/sea-freight "Ocean freight") rate typically starts from the CY at the port of loading. Inland transport costs to the port are separate and borne by the shipper.
- **Control:** The shipper has full control over the choice of inland carrier and delivery schedule to the CY.

#### When is CY/LI Used?

CY/LI is common when the shipper has their own logistics capabilities to deliver containers to the port, or when they prefer to manage this initial leg themselves. It's often seen in conjunction with CY/FO or CY/LO at the destination, creating a port-to-port shipping arrangement.

For businesses exporting goods, understanding CY/LI is vital for accurate costings and efficient planning. Ocean Cargo can provide comprehensive [road freight](https://oceancargo.co.uk/services/road-freight/) solutions to get your cargo to the port, ensuring it meets the vessel's cut-off times.

## CY/DO: Container Yard / Door

### Definition and Implications

**CY/DO** stands for "Container Yard / Door." This is a more comprehensive service where the carrier takes responsibility for the inland transport at the destination. It means the carrier's responsibility extends beyond the Container Yard at the port of discharge, covering the delivery of the container directly to the consignee's door or specified final destination.

#### Key Characteristics of CY/DO:

- **Carrier's Scope:** Ocean transport from port of loading to port of discharge, \*plus\* inland transport from the Container Yard to the consignee's final door.
- **Merchant's Scope:** Minimal responsibility at the destination, primarily receiving the goods at their premises.
- **Cost Implications:** The freight rate for CY/DO will be higher than CY/FO or CY/LO, as it includes the inland haulage costs. This offers a more 'all-in' price for the destination leg.
- **Control:** The carrier manages the inland transport from the CY to the door, providing a more hands-off experience for the consignee.

#### When is CY/DO Used?

CY/DO is ideal for consignees who prefer a hassle-free delivery, lack their own inland transport resources, or are located far from the port. It simplifies the logistics chain for the importer, as they only need to coordinate with one party (the carrier or their freight forwarder) for the entire journey from port to door. This is a popular option for businesses seeking a complete, integrated solution.

Ocean Cargo excels in providing end-to-end solutions, including CY/DO services, ensuring your cargo is delivered directly to your premises. Our [customs compliance](https://oceancargo.co.uk/services/customs-compliance/) expertise also ensures a smooth transition through borders, right to your door.

## The Importance of Incoterms®

While these acronyms define specific points of responsibility for inland transport, it's crucial to remember that they operate within the broader framework of [Incoterms®](https://www.iccwbo.org/resources-for-business/incoterms-rules/) (International Commercial Terms). Incoterms® define the responsibilities of buyers and sellers for the delivery of goods under sales contracts, covering aspects like:

- Who pays for what (costs)
- Where the risk transfers from seller to buyer (risk)
- Who arranges transport and insurance
- Who handles customs formalities

For example, a shipment under [CFR (Cost and Freight)](https://oceancargo.co.uk/incoterms-guide/) might use CY/FO at the destination, as the seller pays for the main carriage but the buyer takes responsibility from the port of discharge. Conversely, a [DDP (Delivered Duty Paid)](https://oceancargo.co.uk/incoterms-guide/) shipment would typically involve the seller (or their freight forwarder like Ocean Cargo) handling all aspects, including inland transport to the buyer's door, aligning with a CY/DO approach.

Always ensure that the chosen Incoterm® aligns with the specific inland transport arrangements (CY/FO, CY/DO, etc.) to avoid any gaps or overlaps in responsibility. Ocean Cargo provides expert advice on Incoterms® to ensure your contracts and logistics plans are perfectly aligned.

## Why Choose Ocean Cargo for Your Inland Transport Needs?

Navigating the nuances of inland transport responsibility can be challenging, but with Ocean Cargo, you gain a partner committed to clarity and efficiency. We offer:

- **Expert Guidance:** Our team of senior logistics experts provides clear explanations of all shipping terms, ensuring you understand your responsibilities and options.
- **Tailored Solutions:** Whether you need a port-to-port (CY/FO) or a door-to-door (CY/DO) service, we customise our solutions to fit your specific requirements and budget.
- **Extensive Network:** Leveraging our global network, we ensure reliable and cost-effective inland transport, regardless of the origin or destination.
- **Seamless Coordination:** We manage the entire process, from [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance") to final delivery, minimising your administrative burden and ensuring timely arrivals.
- **Risk Mitigation:** We proactively identify and address potential issues, providing peace of mind throughout the shipping journey.

From shipping [wind turbine components to Australia](https://oceancargo.co.uk/countries/australia/wind-turbine-components-blades-nacelles-tower-sections-australia) to managing standard container loads, Ocean Cargo delivers reliability, precision, and trust. We are your strategic partner, simplifying complex supply chains and ensuring your cargo arrives safely and on schedule.

#### What is the main difference between CY/FO and CY/DO?

The main difference lies in the extent of the carrier's responsibility at the destination. With CY/FO (Container Yard / Free Out), the carrier's responsibility ends at the Container Yard at the port of discharge, and the consignee arranges and pays for inland transport from there. With CY/DO (Container Yard / Door), the carrier's responsibility extends to delivering the container directly to the consignee's final destination, including the inland haulage.

#### Are CY/FO and CY/LO always the same?

While often used interchangeably in modern shipping, CY/FO and CY/LO generally convey the same practical meaning: the carrier's responsibility for the cargo ends at the Container Yard at the port of discharge. Any subtle differences are usually historical or specific to certain trade lanes, but for most commercial purposes, they indicate that the merchant is responsible for inland transport from the CY.

#### How do these terms relate to Incoterms®?

These inland transport acronyms define specific points of responsibility within the broader framework of Incoterms®. For example, an Incoterm like FOB (Free On Board) or CFR (Cost and Freight) would typically align with CY/FO or CY/LO at the destination, as the buyer takes responsibility from the port. Conversely, a DDP (Delivered Duty Paid) Incoterm would align with a CY/DO approach, where the seller (or their forwarder) handles delivery to the buyer's door. It's crucial to ensure both sets of terms are aligned in your contracts.

#### Who arranges customs clearance with these terms?

[customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance") responsibility is typically defined by the Incoterm® used in the sales contract, not directly by these inland transport acronyms. However, if Ocean Cargo is providing a CY/DO service, we often integrate [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance") as part of our comprehensive door-to-door solution. For CY/FO or CY/LI, the party responsible for the inland leg (usually the merchant) will also typically be responsible for arranging [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance") at the relevant border or port. Our [customs compliance](https://oceancargo.co.uk/services/customs-compliance/) team can assist regardless of the chosen terms.

### Ready to simplify your global logistics?

Get advice and a quote for your next shipment. Contact the Ocean Cargo team to start shipping.

[Freight Quote](https://oceancargo.co.uk/contact-us)

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