Shipping can sound complicated with all the technical terms like Gate In, Gate Out, CY, and CFS. But once you understand what each means, the whole process starts to make sense!
In this guide, we’ll walk you through the key steps and terms you’ll come across when moving containers—how gating works, what freight quotes include, and what affects shipping costs. Whether you’re a beginner or just brushing up, this breakdown will help you navigate shipping like a pro.
Understanding Gate In, Gate Out, and Container Operations
Understanding Gating In
Gating refers to the process in which your shipping container checks in at a container yard before delivery for loading. This happens before the cut-off date and schedule sailing.
The Container Gate in Procedure
This refers to the process of allowing empty containers or full containers to unload or empty ones to load at the port’s CFS or CY. The container gate process depends on the volume of the terminal and the traffic at the port. Container loading at the CFS or CY helps in preparing your goods for shipping. This is by ensuring there is proper sealing and packaging of the goods. You are also able to get a correct freight quote which facilitates payments.
Understanding Gate Out in Shipping
Gate out refers to the process of sealing and loading your container onto a shipping vessel. This covers the terminal exit point of the port. Gate out freight rates consist of terminal handling rates.
Gate In/Gate Out Explained
Gate in/Gate out is a shipping process that includes submitting an empty container either to the CY or CFS. While here, there is the consolidation aspect for LCL, loading, and sealing of your cargo ready for shipping.
The process ends when after loading the cargo onto a shipping vessel at the port of origin. Therefore, Gate in/Gate out includes cargo shipment from your forwarder at CFS or CY at the port of origin. Therefore, the freight rate here includes several aspects material handling and loading charges.
This term is with large multinational shipping companies that have lasting bilateral engagements with international groups.
Container Yard vs. Container Freight Station
A container yard refers to a place where the storage of empty containers takes place before loading on a shipping vessel.
You can also use a container yard for unloading containers from the shipping vessels when they dock at the port.
The primary use of a container yard is in total container loading (FCL). The use of container freight stations is of use in less than container loading.
Less than container cargo owners consolidate their goods and place them in a container freight station for loading.
At the CFS, weighing and loading your goods takes place before loading them onto a shipping vessel.
You can use container yards and container freight stations interchangeably depending on the point of origin and destination.
Common Shipping Terms (CY/CY, CFS/CFS, CFS/CY, CY/CFS)
CY/CY:
This refers to the process of shipping your full container cargo by your freight forwarder.
This is from a container yard at the port of origin to a container yard at the destination port. In this case, your freight forwarder’s liability starts at the CY port of origin and terminates at the CY port of destination. The use of this shipment means that you have a single consignee and shipper.
CFS/CFS
This refers to shipping your goods as less than a container.
You, therefore, have consolidation of your goods with others by your forwarder before shipping. This process starts at the CFS port of origin and ends at the CFS destination port. Finally, the deconsolidation takes place at the destination port. CFS/CFS has multiple consignees and shippers.
CFS/CY
This type of shipment features a single consignee and multiple shippers.
For instance, a freight forwarder may consolidate goods for different shippers and ship them as their own. Therefore, the starting point is at the CFS at the port of origin and terminates at the CY at the port of destination. It is a common type of shipment when shipping and LCL/FCL cargo.
CY/CFS
CY/CFS features multiple consignees and a single shipper. The process starts at CY at the port of origin before shipping to the CFS at the destination port. Deconsolidation takes place at the port of destination.
Freight Quotes and Cost Determination
Understanding a Freight Quote
A freight quote refers to an estimate of the total cost of your shipping, depending on the information you give.
Such information includes dimensions, weight, and the type of cargo you are importing.
Providing accurate information on your shipping gives you an accurate freight quote which facilitates easy payment.
Your freight forwarder usually lists the shipping cost on the invoice since it is unknown at the initial shipping stages.
You need to follow the following steps if you need to get your freight quote.
Steps to Obtain a Freight Quote
Select The Point of Getting Your Freight Quote
There are different ways in which you can get your freight quote.
For instance, you can get it from a freight broker, a freight line searching for an online exchange portal.
When searching for an ideal option, you have to ensure you get the best deal and that your information is safe.
Provide All the Shipment Details
Providing accurate data concerning your shipment is critical in getting a freight quote.
Such information includes the contents of your cargo, its dimension, and weight.
Handling Process
The handling process of your cargo is critical in ensuring a smooth shipment process.
Therefore, the different ways of handling your cargo have an impact on your freight quote.
Depending on the nature of your goods, standard handling processes include refrigeration and hazardous material shipment.
Shipment Destination
The further your shipment destination, the higher your freight quotes.
You must indicate the destination port for your shipment to get the correct freight quote.
Understanding Free in and Free Out
The main feature of this term is it encompasses all the shipping surcharges and costs by your carrier.
In addition, your carrier rates for cargo handling both at the port of origin and at the port of destination.
Gate In/Free Out Explained
Gate In/Free Out means that the freight rate constitutes freight, accompanying surcharges, and cargo handling before departure.
However, it excludes the cargo handling rate at the destination port.
It is a common term in shipping goods from Asia and Europe.
Free In/Gate Out Explained
Free In/Gate out means the rate includes the freight cost and its accompanying surcharges.
It also consists of the cargo handling rate at the port of destination.
Factors Affecting Shipping Rates and Bookings
Factors Influencing Shipping Rates
The following factors are crucial in influencing shipping rates:
Political Stability
Shipping depends on the political stability of the port of origin, the port of destination, and the shipping route.
Therefore, when there is political instability and these parties, you will pay a higher shipping rate. This is because a higher shipping rate covers all the risks involved in shipping to your port of destination. For instance, you have to pay a higher insurance claim for such shipment, which raises the shipping cost.
Seasonal Changes
Shipping during low seasons attracts low shipping rates.
This is because of the low demand for shipping vessels and goods. You, therefore, get a low shipping rate for shipping a high volume of your cargo. However, this depends on the type of freight forwarder and shipping vessel you select.
Distances
The longer the distance between the port of origin and the destination port, the higher the shipping rate.
This is due to the logistics involved in shipping to longer destinations.
Fuel Cost
Fuel cost keeps fluctuating due to the changing demand of oil prices around the world.
You, therefore, get to know the final cost when you receive the final quotation for your shipment. High oil price demand raises the fuel price surcharge while a lower demand reduces it.
Currency Conversion
The shipping rate depends on the currency you are using for your shipment.
The use of a stable currency for both parties means you get a steady shipping rate for your cargo. However, using an unstable currency means that you can end up paying more for your shipping cost. Therefore, most forwarders and shipping companies prefer to use the US dollar due to its stability and high recognition.
When a Booked Shipment Quote Expires
If your booked shipment quote expires, you have to re-quote it with new and updated rates.
This facilitates the process of getting in and locking your cargo at the container yard or container freight station at the port of origin.
Booking Expiring Quotes in Advance
Yes. You still have to book in advance if you have a quote that may expire. This is if you think the current rates will pass before getting in of your goods.
During the low season, you can book in advance for up to one week. However, during the high season, you can book in advance for up to 2 weeks. The booking process depends on the availability of the shipping vessel and the space on it.
Measurement, Procedures, and Port Operations
Measuring Shipments During Gate In
There are two ways of measuring your cargo at the Gate in that is by volume or by weight. These two measurements are critical in understanding the final freight quote for your cargo.
Importance of Measuring Shipments
Measuring shipment is vital in checking out the actual volume of your cargo. In addition, this helps in proper handling during the loading process.
Checking the volume is one of the critical factors that help get the freight quote for your shipment.
Changes in Shipment Measurements After Gating In
Yes. There can be a change in measurements on your shipment. This is due to the tour supplier giving an estimate of your cargo’s volume and weight. The packaging material and palletizations also increase the volume and weight of your cargo.
Impact of Re-Measurement on Freight Quotes
This depends on the outcome of re-measurements of your cargo.
For instance, if the re-measurement increases the volume and weight of your cargo, then the final freight quote increases. If the re-measurement process reduces your cargo’s weight and volume, you should expect a lower freight quote. This is because pricing depends on the volume or weight basis, whichever is higher.
Gating In Procedures for Different Shipments
No. the Gating in the procedure is not the same for all shipments. This is due to the different handling procedures for each type of cargo. For instance, the handling process for LCL is different from that of an FCL.
This is because you have to consolidate LCL cargo before loading it into your container. Specialized cargo such as refrigerated goods and dry bulk require special handling, unlike other goods. It is therefore critical that you check on the type of goods you are shipping before Gating in. This is because the Gating process impacts your freight quote.
Cargo Declaration Requirements at Gate In
There are two main requirements that you should present during cargo declaration at the Gate. These requirements include authorizing slip number and the vehicle time slot booking. These requirements help in facilitating the Gate in process.
Marine Gate Terminal Throughput Capacity
This refers to the availability of a Gate at a port of origin and destination. It also includes the hours in which they are open. It also consists of the rate of transacting process for these gates.
The number of gates available for large port terminals is proportional to the volume of goods they expect to transact. Such terminals also can convert existing gates to either serve the inbound or outbound shipment depending on their needs.
Operating Hours of Marine Gate Terminals
The typical operating hours for marine gate terminals depend on the availability of the gates and the port’s policies. You also have to consider the span duration of these gates.
For instance, a single shift gate operates from 7 am to 5 pm, while there a double shift gate usually works throughout. Working hours for your marine gate usually indicate the Gate cut-cut capacity for a particular port terminal.
Understanding Gate Cut-Off
This refers to closing gates to allow for working on the containers already in the CFS or CY. Gate cut-off depends on the volume of a CY or CFS at the terminal. For a large port, Gate cut-off rarely happens due to the availability of large capacity for the CY and the CFS.
The existence of numerous inbound and outbound gates ins also allows for flexibility when one side is overloaded.
Late Gate in Explained
Late Gate refers to the process in which your container arrives at the port’s terminal long after the gate cut-off process is over.
Consequences of a Late Gate In
The significant consequence of a late in is it delays your shipment schedule.
This is because those handling your cargo have to postpone it to the next vessel due to delays in loading the empty container.’
You have to pay the penalty in some cases for late Gating in of your cargo.
Final Thoughts
Having an idea about what Gate In and Gate Out are will allow you to better handle your shipments, prevent any delays, and get a good grasp of your freight cost. Understanding these terms will help you plan better and keep your cargo flowing from point A to point B.
