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A Container Freight Station (CFS) is a large warehouse that specializes in the consolidation and de-consolidation of Less than Container Load (LCL) cargo. These warehouses located near ports, where cargo is consolidated or de-consolidated. CFS serves as a temporary storage facility for import and export goods. Combines multiple LCL shipments from different shippers into a Full Container Load (FCL) for efficient shipping, this is called consolidation. Unpacking an FCL shipment into individual LCL consignments, this is called de-consolidation. CFS primarily deals with LCL cargo, it also handles FCL cargo stuffed at the CFS.
A CFS is also a place where goods for import and export are stored temporarily. It acts as an extension of a port or terminal, originally introduced in India to ease port congestion. CFS may have started as an Indian concept, but now it’s used worldwide in the shipping industry.
A Container Freight Station (CFS) is a facility where cargo is consolidated, de-consolidated, stored temporarily, and processed for customs clearance. CFS is located close to a port, terminal or inland container depot. Sometimes, you might also find one near major train station. These CFS warehouses can be owned by shipping lines, port terminals, or private logistics companies. CFS warehouses are important for both import and export at the points of origin and destination, they are called either an "Origin CFS" or a "Destination CFS".
In recent years, Container Freight Stations have gained popularity, especially due to the increasing demand for LCL shipments. They offer exporters and importers a centralized and secure location for cargo handling, ensuring goods are safely stored, handled and sent to the next destination.
To clearly understand what a CFS is and its part in India’s import-export industry, it is important to know about its functions.
Receives and combines LCL shipments for export.
De-consolidates containers at the destination and arranges final delivery.
Prepares loading plans for containers.
Mark and seals containers properly.
Handles container maintenance and repairs.
Provides temporary storage for goods and containers.
Loads and unloads containers (for both LCL and FCL cargo).
Exporter loads the goods on a truck and sends them to the CFS with the shipping bill.
CFS receives and unloads the goods.
Customs clearance is carried out at the CFS.
Once customs gives approval (called "Let Export Order"), the goods are loaded into a container.
Importer / carrier / steamer agent files an Import General Manifest (IGM) with cargo, exporter, importer, and shipment details.
Container arrives at the port and is sent to the CFS.
Cargo is offloaded, stacked and de-stuffed at CFS
Cargo owner or their clearing agent files bill of entry, proceeds with cargo clearance and duty payment
Customs clears the bill of entry with "out of charge" order.
The CFS issues a gate pass, and the cargo is released to the importer.
Decongests at ports and terminals
Free them of several customs clearance procedures
Assigns unique IDs to vessels, making cargo tracking easier.
Maintains records of shipments, including exporter, importer, cargo info, and transport details
Offers the advantages of container shipping like better security, faster loading / unloading and various container options to fit different cargo needs.
A Container Freight Station (CFS) charges a fee for every service it provides. Exporters and importers should keep these costs in mind. Failure to do so can result in:
a) increased logistics costs, b) shipment delays, and c) poor relations with customs authorities, which is never good for business
Container stuffing.
Cargo storage.
Per-day ground rent for empty and laden containers.
De-stuffing and delivery.
Cargo handling for customs examination.
Cargo storage.
Per-day ground rent for laden containers.
Container scanning.
Port entry.
Transportation to and from CFS/port.
Lift On / Lift Off.
Shifting of cargo within CFS.
Container sweeping.
Container repairs.
Chocking, lashing and dunnage to secure cargo.
Reefer handling, such as plugging and monitoring of reefers.
Amendments in documents.
Like a CFS, a container yard (CY), inland container depot (ICD) and bonded warehouse are container handling and storage facilities that facilitate the import and export of goods. However, there are marked differences between them.
A container yard (CY) is an area inside the port used for full container load (FCL) shipments. On the other hand, a container freight station (CFS), handles both FCL and less-than-container load (LCL) shipments.
It is usually located near the port or terminal. For export shipments, a CFS collects empty containers from a CY for both FCL and LCL cargo.
CYs are used to organize containers for loading onto ships and storing off loaded containers until they go to a CFS, rail yard, or the importer.
Both CY and CFS have deadlines (cut-off dates) by which containers must be delivered to catch a scheduled ship.
An Inland Container Depot (ICD) is similar to a Container Freight Station (CFS), but there’s a key difference. While a CFS is located near ports or terminals, an ICD is situated further inland, closer to factories and warehouses. They help importers and exporters manage shipments away from ports and terminals. This is the reason they are also called "dry ports.".
An ICD operates as an independent customs station, like those at ports, airports and on land. It has its own system to check goods and process documents. On the other hand, a CFS only examines goods, while the paperwork and customs processing are done at the main customs house or customs station to which the CFS is attached.
A bonded warehouse is quite different from CFS, ICD, or CY. It allows businesses to store both local and imported goods without paying taxes or duties immediately.
Bonded warehouses were designed to avoid financial problems of importers. It gives them time to arrange duty payments or find buyers. If a buyer is found, the duty can be passed on to them. If not, the importer can re-export the goods without paying any duty.
Goods can stay in a bonded warehouse for as long as needed, unlike at ports or terminals where long storage leads to expensive demurrage charges.
Another difference of bonded warehouse from a CFS, CY or ICD is that the goods in a bonded warehouse have already gone through customs clearance.
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