What Are the Different Types of Container Holds?

What is a line hold on a container?

A line hold (often shown as a freight hold) is placed by the ocean carrier, not by the government or the terminal. APM Terminals' procedures page lists the freight hold as "placed by the steamship line," separate from customs holds placed by CBP and terminal holds placed by the terminal.^[2]

Terminal tracking systems often split the carrier's holds into two flags:^[1]

• Freight hold: the carrier has not received or confirmed payment of the freight charges. Fix it by confirming payment with the shipping line or your freight forwarder.
• Line hold (carrier release pending): the terminal has not received or confirmed the carrier's release for the container or its bill of lading. Fix it by asking the shipping line to send its release to the terminal.

The party that deals with the carrier is the one on the carrier's bill of lading: the consignee, or the NVOCC when the importer holds a house bill. Where an original bill of lading was issued, the Port Authority's truckers guidebook notes that it serves as title to the cargo, so it matters who holds it.^[3]

If the carrier says it has no hold but the terminal still shows one, APM Terminals asks the steamship line to email the terminal directly to remove it.^[2] A container with a freight hold cannot be booked for a pickup appointment: the Port Authority's guidebook answers "No" to whether an appointment can be made for a container with a customs or freight hold, because the container must be fully available first.^[3]

What is a container hold?

A container hold is any flag that stops a terminal from releasing a box. Several can be active at once.

The Port Authority of New York and New Jersey tells truckers to make sure there are no holds on a container (freight, customer, demurrage, customs and others) before picking up an import load.^[3] At APM Terminals Elizabeth, a hold on the container is one of the problems that automatically triggers a void-out ticket.^[3]

What is a customs manifest hold?

CBP's ACE FAQ says the status "Under CBP Review" generally means a hold on the associated bill of lading, and that CBP planned to relabel it "Manifest Hold" in its messages.^[4] An entry is not "Admissible" until there are no bill-level or entry-level holds.^[4]

Carriers and terminals see these holds as disposition codes in CBP's manifest system:^[5]

• 1H: a CBP hold at the port of discharge. Release is denied until CBP removes it (1I).
• 3H: a hold for another government agency, also removed only by CBP.
• 5H: an entry processing hold for a document discrepancy exam.
• 7H: a non-intrusive inspection (NII), such as an X-ray scan, has been ordered.
• 2O and 2P: ISF holds for no importer security filing on file or an ISF compliance issue.

Even a released entry (1C) must be held intact while any hold remains on the bill.^[5] A Permit to Transfer (code 1W) lets a held container move to an exam site, but cargo cannot transfer until CBP removes the holds.^[5] Cargo that stays unreleased can end up in a general order warehouse.

What does a USDA hold mean?

USDA's plant health service says a shipment goes on a USDA hold when a CBP inspector needs to verify entry documentation or sees a possible plant pest or disease risk, and that "while the alert may say USDA, in most cases, CBP is actually placing the hold."^[6] Inspections can take several business days at busy ports. If a problem is confirmed, the importer receives an emergency action notice explaining what was found and the options to resolve it, and commercial importers check status through their broker.^[6] Wood packaging is a common trigger; see ISPM 15 wood pallets.

What is a terminal hold?

A terminal hold means money is owed to the terminal itself. APM Terminals marks it as "any hold with $" and says fees are due to the terminal, payable through PayCargo; an exam setup fee can also put a separate VACIS hold on the box.^[2] At Port Newark Container Terminal, the transaction requirements list one number to check demurrage and hold status and another to clear demurrage or pay fees.^[7]

Exams and the free time clock

When CBP orders an exam, the importer generally bears the cost of preparing the merchandise for examination and closing the packages, unless the port director requires the exam at the public stores.^[8] The exam levels are explained in CBP exam holds.

Holds can keep a container on the terminal while free time runs. The FMC's interpretive rule on demurrage and detention says the Commission may consider whether demurrage and free time are tied to cargo availability for retrieval, and whether the charges serve their purpose as incentives to move freight.^[9] Once every hold is lifted, the trucker still needs the carrier's release, usually a delivery order.

Example

Illustrative only: an importer's broker sees that CBP released the entry, but the terminal site still shows a line hold. The house bill was issued by an NVOCC, and the NVOCC has not paid the ocean carrier or sent the release. Once the importer pays the NVOCC, the NVOCC settles with the carrier, the carrier sends its release to the terminal, and the hold drops. The trucker can then book an appointment, and the drayage carrier delivers the container to a cross-dock for transloading, such as RapidShips in East Brunswick, NJ, about 30 road miles from the Port Newark–Elizabeth terminals.

Limitations

Hold names and codes differ by terminal system: one terminal's "freight hold" may be another's "line hold." This is general information; the terminal, the carrier and your customs broker confirm what a specific hold means and how to clear it.