What is CFS in logistics and how does it work

Article content: 

1. CFS: What is it and how is it used.
2. Terminal operation stages.
3. Benefits of using CFS in international shipments.
4. Difference between CFS and terms CY, LCL, FCL.
5. How to choose a reliable CFS terminal: expert tips.

In maritime logistics, LCL/FCL — Less than Container Load/Full Container Load — is often mentioned. But where does this take place? The answer to this question is the CFS warehouse — a special zone in the port of departure and arrival. DiFFreight experts have prepared a detailed material about its role in international cargo transportation.

CFS: What is it and how is it used

Container Freight Station (CFS) is a container terminal near ports where consolidation and deconsolidation of cargoes take place.

• Consolidation — combining goods from different senders. In maritime transportation, a container is used; in road transport, the corresponding type of transport is used.
• Deconsolidation — the reverse process, when cargo from a container/truck is distributed for the final delivery stage.

The main purpose of the terminal is to handle consolidated cargo (Less than Container Load). The warehouses are used for:

• maritime transport;
• rail deliveries;
• road transport.

CFS stations play an important role in the supply chain, allowing efficient organization of international shipments. For convenience and cost-efficiency, they are located near strategic transportation hubs.

Terminal operation stages

The cargo undergoes several stages:

• Reception. Cargo from different senders arrives, it is checked and labeled.
• Consolidation. Small shipments are combined into one container if they are heading to the same destination or for transit to a point on the route.
• Deconsolidation. After arrival at the destination port, the cargo is unloaded and distributed among the recipients.
• Customs clearance. At CFS, goods can be temporarily stored before shipment and undergo customs procedures.
• Loading and delivery. After all formalities, the cargo is handed over to the final recipients.

In addition, CFS warehouses provide additional services:

• Weight assessment and inspection. Terminals are equipped with the necessary equipment.
• Temporary storage — space for both full and empty containers.
• Tracking. They keep records of all cargo movements, noting information about importers, exporters, brokers, and other participants in the chain.
• Loading and unloading planning to efficiently combine shipments for safe delivery.
• Cargo services: palletizing, shrink wrapping, labeling, and more.
• Security and safety. Terminals are secure areas, minimizing damage and theft.
• Documentary support. Some companies assist with preparing documents, including bills of lading, manifests, and more.

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A Container Freight Station (CFS) is an important link in the logistics chain, especially for entrepreneurs using the LCL model, i.e., consolidated shipping. For profitable purchasing, we recommend using the service of finding suppliers in China.

Advantages of Using CFS in International Shipping

Using a terminal provides several advantages and, at the same time, certain disadvantages:

 An important question is — who pays for freight and services? It depends on the Incoterms delivery conditions. The expenses are borne by the shipper, the consignee, or the shipping line.

Under FOB (Free On Board), the costs are paid by the consignee. Under CIF/CFR, the cost is included in the overall freight rate. Under DDP (Delivered Duty Paid), the costs are borne by the shipper.

The CFS notation in a sea bill of lading indicates that the cost of terminal services is not included in the freight and must be paid separately. Whether CFS services are included or not should be clarified with the agent you are working with.

Difference between CFS and terms CY, LCL, FCL

It should be noted that CFS delivery terms are not part of Incoterms, as it is not a trade term but a logistics service. What is the difference between the following definitions:

• CFS (Container Freight Station) — a warehouse where consolidated cargoes are processed. The station specializes in handling import/export formalities, easing cargo and customs checks. It is usually located outside the ports and is owned by companies with a customs license.
• CY (Container Yard) — a terminal for the storage and transshipment of full containers without cargo distribution. It is limited to port facilities and is managed by the port authority.
• LCL (Less than Container Load) — consolidated cargo that occupies part of a container; processing takes place at CFS.
• FCL (Full Container Load) — a full container load from one shipper; these containers are more commonly processed at CY, not CFS.

Do not confuse CFS with fulfillment, which also refers to warehouse services.

How to choose a reliable CFS terminal: expert tips

Choosing the right CFS warehouse affects the efficiency of the entire supply chain. What to pay attention to:

• Location — the closer to the port, the faster the processing;
• Infrastructure — availability of modern warehouse facilities, security systems, and specialized equipment;
• Experience — terminals with a good reputation ensure smooth operations and minimize risks;
• Additional services — declaration processing, insurance, and storage;
• Transparency of tariffs.

CFS delivery terms are a necessary element of consolidated cargo logistics. DiFFreight offers you warehousing services with consolidation, repackaging, and labeling of cargo in China. We also conduct quality control of goods before shipment by sea or air freight. A well-chosen CFS partner will significantly improve quality and timelines: we look forward to your consultation with our experts!