First, let's discuss what CFS is in shipping? CFS is a cargo integrated and non-integrated facility specialising in LCL cargo. It's usually a big camp. Multiple LCL cargoes are integrated into a Full Container Load (FCL) and separated by non-integration. This does not mean that CFS will only process LCL cargo. CFS can also be used to process FCL cargo (FCL is a mode of transport for large quantities of cargo that occupies the entire container and is owned by one shipper). CFS also functions as an intermediate storage facility for importing and exporting goods. This is a project to expand ports and terminals to alleviate the congestion of ports and terminals in India. CFS is an acronym for India and later became part of the international transport language.
Did you know?
Following the implementation of direct port delivery in early 2017, Container Freight Stations (CFS) serving the Jawaharlal Nehru Port Trust (JNPT) saw mob violence in two separate instances due to a loss in revenue. Some retrenched contract workers stormed buses carrying CFS employees of APM terminals inland services on August 3 and 10. APM Terminals is a subsidiary of AP Moller-Maersk Group A/S, which owns and operates two CFSs near India's main container port.
What Is CFS, and Why Is It Important?
A container freight station is a warehouse that integrates and de-consolidates import and export cargo. A supply chain that moves IPI cargo from one location to another requires CFS. CFS collects empty containers from CY for export voyages of FCL and LCL. CY's duties include coordinating shipping containers and storing offloaded containers until they are shipped to a CFS or marshalling yard, or handed over to an importer. A place to connect or disconnect cargo before transportation. CFS is often near a port, airport or sea where cargo containers move back and forth. A CFS container combines LCL shipments from the same or different clients headed for the same destination into a single bigger container. A CFS container combines LCL shipments from the same or different clients headed for the same destination into a single bigger container. It makes ports and terminals more efficient. This frees them from several customs procedures. CFS is hence a critical factor in import and export.
Also Read: Shipping Labels - What are They and How do They Work?
CFS Meaning in Shipping and Its Importance
Following are some of the functions and responsibilities of CFS:
- LCL containers are used to hold goods, and the goods are integrated for export.
- At the destination, the container is de-consolidated and shipped for final delivery.
- Create a container load schedule—loaded and unloaded containers (LCL and FCL cargo).
- The container is labelled and sealed for identification. It is an intermediate storage facility for empty or partially loaded cargo containers.
- Empty containers are delivered from the Container Yard (CY) to the port/terminal.
- Stack, classify, track and count containers before and after shipping.
- Container Maintenance and repair of road and rail transport to and from the port/terminal
- Customs clearance includes product classification, inspection and evaluation. Ensure product safety before shipping or collection.
- Handles non-containerised general cargo that starts or ends in the immediate hinterland of a port or terminal and rail transport to and from inland locations.
The CFS Export Process
CFS must first receive the material and shipping invoice from the exporter. After this, the products are unloaded, and the CFS custodian confirms that they have been received. Customs officers will begin customs clearance of goods through customs. Upon completion of the procedure, the Customs Inspector will issue a transit note containing the note "Accept export order". The contents of the container are loaded into the container by CFS. The container is sealed and has a label to identify it. Next, the CFS export terminal/port is specified.
The CFS Import Process
First, the goods are unloaded and stored in a container warehouse. A customs inspector inspects units before being delivered to CFS for stacking. Importers must first receive a general import manifest from the port before entering CFS. After checking the documents with CFS, break the container seal and pack the container in front of customs officers. The importer then submits an import document listing the products and goods contained in the container. After checking customs, you need to pay. Customs will then issue an import pass permitting the product to leave CFS. At this point, the container is unconsolidated.
Why Is CFS Critical?
CFS is dangerous for a variety of reasons. CFS encourages intermodal freight and uses appropriate safety equipment and tracking systems to optimise the movement of small cargo to their respective locations. This makes ports and terminals more efficient, and you no longer have to go through many customs clearance procedures. In addition, each vessel is assigned a unique identification number, which makes it easier to track products and containers. Track shipping information such as exporter, importer, customs broker IDs and cargo details. It also offers all the benefits of container transportation, including improved cargo security, faster loading and unloading, loading and unloading and a diverse container fleet to meet your needs. We keep things safe until they are shipped or picked up. CFS is also used for container maintenance, repair, and temporary cargo storage for both empty and full containers.
The CFS Charges
There is a container freight station charge for shipping LCL. LCL cargo is transported to a container freight station (CFS) and decoupled upon arrival at the destination port. It is then loaded onto a truck and driven to its final destination. If the shipping material is LCL and the incoterms include a place of origin fee (e.g., factory default), the cost of the container freight station will be included in the flex port quote/invoice as the place of origin fee. This price includes the original CFS service if the shipment is bundled for shipping. These fees must be paid by both the exporter and the importer. Failure to do so can result in increased shipping costs, shipping delays and tensions in relationships with customs officers, all of which harm the business.
Also Read: Bill of Lading – Meaning, Types, and Usage for Importers and Exporters
The Import Activities That Attract CFS Charges
Below are some import activities that appeal to CFS:-
- The cost of transporting large cargo to CFS and landing for customs inspection is included in this price.
- Cargo handling for customs management.
- Basic daily rent for large containers and cargo storage.
- Container Scan: This cost will be charged if the Customs Inspector selects the cargo for image scanning for various reasons. To detect radiation or to ensure that the product complies with the specifications.
Conclusion
We learned a lot about CFS in this article. A CFS is a facility dedicated to consolidating and deconsolidating LCL freight, usually a huge warehouse. Consolidation combines multiple LCL shipments into a full container load (FCL), while deconsolidation separates them. We looked at its significance, functions and responsibilities, the export and import process, fees and the rationale for those fees. Container Freight Station (CFS) uses safety equipment and tracking systems to optimise the movement of small cargo. This makes ports and terminals more efficient and reduces customs clearance procedures. CFS is also used for container maintenance, repair, and temporary cargo storage for both empty and full containers. It offers all the benefits of container transportation, including improved cargo security, faster loading and unloading and a diverse container fleet. To summarise, container freight stations will likely play an important role in your trading and shipping strategy, so you should understand everything you can about them before you begin.
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