“Order Cut-off,” “port cut-off,” and “customs cut-off” are not the same thing in international shipping. Their meanings, timings, and impacts vary. Getting the timing wrong can indeed result in cargo being dropped from the container. Here’s a detailed explanation:
SI Cut-off
Meaning: This is the deadline for shipping companies to submit or modify bill of lading specimens, including information such as the AMS, ENS, and VGM. Submitting or modifying relevant information after this deadline will typically incur a late cut-off fee or bill of lading modification fee.
Time: The SI Cut-off time varies for each shipping company and each route, generally ranging from 1 to 7 days before sailing.
Impact: Failure to submit accurate bill of lading information after the SI Cut-off will delay issuance or even prevent the issuance of an accurate bill of lading, impacting subsequent cargo flow and settlement.
Cut-off (CY Cut-off)
Meaning: Also known as the heavy container cut-off, this refers to the time when the terminal closes for container acceptance. Before this time, loaded containers can enter the terminal or warehouse; after this time, they cannot enter the terminal.
Time: Usually 1-2 days before sailing.
Impact: If the cut-off is missed, the cargo may not be able to make the scheduled sailing date and will need to be rebooked on the next voyage. Additional storage fees may also be incurred.
Closing Time
Meaning: This refers to the deadline for customs clearance. Goods must be cleared and released, and the customs release slip must be submitted to the shipping company by this time. Otherwise, the shipping company will deem the cargo as uncleared and will not allow it to board the vessel.
Time: Generally half a business day after the cut-off, usually 1-2 days before sailing, and 5-7 days in advance for bulk cargo.
Impact: Late customs clearance may result in cargo being unable to clear customs and being abandoned, resulting in additional charges such as demurrage and vessel renaming fees. In general, the order of these three processes is usually order closing, followed by port closing, and finally customs clearance. In international shipping operations, it’s important to accurately grasp these three timelines and make the necessary preparations in advance to ensure smooth loading and shipment.
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