Container Freight Station (CFS) : Meaning, Purpose & Benefits
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Container Freight Station (CFS)
Container freight stations are distribution facilities where import and export cargoes are consolidated and de-consolidated.
CFS are a critical part of any supply chain transporting intermodal freight inside a building.
Shippers as well as other third-party logistics service providers, as well as the customers themselves, all rely on freight forwarders for their freight.
It is generally understood that container freight terminals are situated near major ports and interior distribution hubs.
Although shipping containers come in a wide variety of sizes, many freight stations, including container terminals, are located near ports, inside terminals, next to large warehouses, or near important railway hubs, since such locations facilitate transshipment by trucks, trains, or consumers.
Permission to release goods is required before your truck drivers can pick up the cargo. To do so, you’ll also need a customs clearance form that indicates the products are allowed to enter the country for their (de-)consolidation service. There is a fee associated with using this service, based on the size of the cargo.
It is equipped to carry CFS-filled FCL freight as well. An CFS is also a location where imported and exported products are kept for a short period of time. It was created with the aim of clearing port and terminal congestion in India. While the idea of CFS may have originated with Indian people, it is now commonly used throughout the world.
Key Benefits & Purpose of Container Freight Station (CFS)
- Consolidate LCL shipments into a bigger container with freight from the same or other customers bound for the same area.
- It relieves congestion at ports and terminals.
- This relieves them of a number of customs clearance processes.
- A unique identifying number is assigned to each vessel, allowing for simple monitoring of cargo and containers.
- Maintains shipment data, including exporter, importer, and customs agent names, cargo information, origin and destination ports, carrier name, truck number, and so on.
- All of the advantages of containerized transportation, including as increased cargo security, fast and effective loading, unloading, stuffing and de-stuffing, and a choice of containers to meet your requirements, are available.
- Typically, CFS stations include both foreign trade zone (FTZ) and non-FTZ components. The reason for this is because many shippers utilise a customs form 7512 to keep their goods in-bond and out of the jurisdiction of the US Customs and Border Patrol (CBP). This enables the shipper to postpone duty and tax payment until the item is used in a manufacturing process or sold to a consumer.
Import and Export Process of Container Freight Station (CFS)
For LCL and FCL shipments, the CFS streamlines the process, so here’s how it works:
- An exporter arrives at CFS with products and a shipping invoice.
- Unloading the items is completed, and the CFS custodian verifies that they’ve been received.
- Customs officials start the process for the items’ customs clearance.
- Customs officials provide a shipping bill with “allow export order” after the process is finished.
- The items in the container are beginning to be loaded by CFS.
- The container is airtight and stamped with an identifying label. It is sent to the port/terminal for export via CFS.
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- Importer completes the shipping container’s arrival by filing an import general manifest (IGM) at the port. This is about the cargo, the exporter, and the importer.
- After which, the container is sent to the CFS address
- CFS hands over the shipment and has it delivered to the cargo clearing office
- Bill of Lading: The cargo owner or their forwarding agency submits this bill of lading. Once this task has been completed, the shipment clearance and duty payment is sent to the customs agency.
- Customs provides a bill of lading that states that the cargo has a “out of charge” instruction.
- Next, the cargo was sent to the importer via a gate permit, courtesy of the CFS custodian.
- By serving as an extension of the port, the Container Freight Station helps to decrease congestion and simplify the whole process.
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