What is CY is a common question when export businesses face situations where containers arrive at the yard late, incurring demurrage fees or missing ship sailings. Correctly understanding CY, VGM, and container management processes helps significantly reduce logistics costs.
According to the latest reports from VASEP, seafood export turnover Vietnam in 2026 has exceeded 11.3 billion USD. Meanwhile, many import markets continue to tighten requirements for traceability and cold chain control. This makes container management at ports and accurate declaration more important than ever.
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This article will help businesses clearly understand VGM declaration regulations, how CY yards operate, and practical solutions to optimize container demurrage fees in export operations.
What is CY and the role of the CY yard in the export chain
What is CY in container shipping
CY (Container Yard) is an area for gathering containers at ports or ICDs. This is where containers are received, stored, and arranged before being loaded onto a ship or after being discharged from a ship.
For FCL shipments, CY is an important handover point between the shipping line and the shipper. If a container arrives at the yard too late compared to the Closing Time, the business may miss the ship and incur additional costs.
According to HNT LOGISTICS' experience, many fruit export businesses from the Mekong Delta have reduced yard storage costs by bringing containers into the CY early, 24 to 48 hours before the cargo cutoff time.
Container receiving process at the CY
- Book with the shipping line and receive the empty container release order.
- Load cargo at the warehouse or factory according to specifications.
- Transport the container to the CY according to the specified time.
- Check documents and confirm the container's status.
- Wait for ship loading according to the port operation plan.
For example, Mekong Fresh Company in Tien Giang exporting mangoes to Shanghai brought the container into the CY 36 hours in advance, helping to avoid port gate congestion and saving more than 12% in incidental costs.
A seafood business in Ca Mau exporting goods to Busan proactively completed CY procedures 2 days in advance. As a result, no yard demurrage was incurred during the peak season.
Risks of incurring container demurrage fees
Container demurrage fees usually arise when a container remains at the port or outside the port beyond the free time stipulated by the shipping line.
- Container arriving at the yard late compared to the Closing Time.
- Missing export documents.
- Incorrect bill of lading information.
- VGM declaration not completed.
- Port congestion or schedule changes.
| Nguyên nhân | Impact | Risk level |
|---|---|---|
| Arriving at CY late | Missing ship | Infrastructure |
| Incorrect VGM | Shipment refused | Infrastructure |
| Missing documents | Customs clearance delay | Standard-compliant, inspected |
| Overweight | Penalty and inspection | Infrastructure |
What is CY in VGM management and what is overweight control
What is VGM
What is VGM is a question directly related to maritime transport safety. VGM (Verified Gross Mass) is the total weight of the container that has been verified according to the requirements of SOLAS Convention.
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Containers without a valid VGM may be refused loading onto the ship. This is a requirement applied on most international shipping routes today.
Time for VGM declaration
Businesses need to complete the declaration before the shipping line's VGM Closing time. This time is usually several hours to a day earlier than the cargo cutoff time.
Based on HNT LOGISTICS' experience, frozen seafood export businesses should complete the VGM weighing right after loading to limit the risk of weight changes due to adding pallets or packaging materials.
For example, Blue Ocean Seafood Company in Soc Trang exporting shrimp to Los Angeles has applied electronic weighing at the factory. As a result, VGM errors were completely reduced for 6 consecutive months.
A dragon fruit business in Long An exporting to Singapore reduced document processing time by 18 hours by integrating cargo weighing data into the declaration system.
What is overweight and its consequences
What is overweight? This is the state where a container exceeds the weight allowed by the container design, port regulations, or road limits.
- Increased risk of shipment refusal.
- Incurring additional lifting fees.
- Increased inspection time at the port.
- Risk of operational safety issues.
- Affecting delivery schedules.
What is CY when choosing the appropriate container symbol
Common container symbols
Correctly understanding container symbols helps businesses choose equipment suitable for the characteristics of the goods.
| Symbol | Type of Container | Application |
|---|---|---|
| 22G1 | 20ft Dry | General cargo |
| 42G1 | 40ft Dry | Standard export |
| 45R1 | 40ft Reefer | Seafood, fruits |
| 22U1 | Open Top | Over-dimensioned Goods |
Choosing the right container for export goods
Fresh fruit businesses often prioritize reefer containers to maintain stable temperatures. Conversely, dry goods can use standard containers to optimize costs.
According to experts at HNT LOGISTICS, choosing the right type of reefer container from the booking stage helps limit last-minute equipment changes and reduces the risk of incurring container demurrage fees.
Controlling payload and loading/unloading capability
- Check the maximum payload stated on the container door.
- Verify the actual weight of the goods.
- Distribute the load evenly on the container floor.
- Check road transportation limits.
- Confirm data before VGM declaration.
For example, a rice business in Dong Thap reduced the re-inspection rate by 15% thanks to standardizing the payload control process.
A cashew processing plant in Binh Phuoc avoided overweight container situations on the Cat Lai to Rotterdam route by checking the weight for each pallet.
How to optimize container demurrage fees and port costs
Planning booking and inland transportation
Synchronizing production schedules, trucking schedules, and vessel schedules helps significantly reduce the time containers wait at the CY.
- Đặt booking sớm trong mùa cao điểm.
- Track vessel schedules daily.
- Prepare backup plans for inland transportation.
- Check Free Time duration.
- Confirm Closing Time with the shipping line.
Managing documents and customs declarations
Many incurred fees come from document errors. Therefore, businesses need to standardize the process of checking bills of lading, VGM, and customs declarations.
Vietnam's agricultural, forestry, and aquatic product export figures continue to grow strongly in 2026, leading to pressure on port exploitation and the need to optimize logistics chains.
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Practical solutions to reduce container demurrage fees
| Measures | Target | Lợi ích |
|---|---|---|
| Declare VGM early | On-time for vessel | Reduce missed shipments |
| Check payload | Avoid overweight | Reduce fines |
| CY Tracking | Yard Stock Control | Reduce Demurrage |
| Standardize Documents | Accelerate Customs Clearance | Cost savings |
Import markets are increasingly demanding regarding traceability and phytosanitary quarantine. In particular, many new regulations from China for fresh fruits require strict supervision from planting areas to packing facilities.
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What is CY is not just a concept of a container yard but also a crucial link determining delivery speed and logistics costs. Businesses need to combine CY management, accurate VGM declaration, and weight control to avoid unnecessary fees.
- Understand the correct function of CY.
- Complete VGM before the deadline.
- Control the risk of being overweight.
- Choose the correct container code.
- Track the shipping line's Free Time.
- Standardize export documentation.
Đối với doanh nghiệp xuất khẩu nông sản, thủy sản và hàng lạnh, việc xây dựng quy trình kiểm soát container từ nhà máy đến cảng là yếu tố then chốt để duy trì năng lực cạnh tranh. HNT LOGISTICS sẵn sàng đồng hành như đối tác giao nhận và logistics đáng tin cậy cho các doanh nghiệp xuất khẩu trên toàn Việt Nam. Liên hệ ngay qua địa chỉ 8A Hoàng Minh Giám, TP.HCM hoặc email marketing tại hntshipping.com để được hỗ trợ báo giá!
