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Glosario Logístico CFS(Container Freight Station)

Fecha de inscripciónDEC 19, 2023

CFS(Container Freight Station)
A container freight station (CFS) is a facility designed for handling and temporarily storing less-than-container load (LCL) cargo. CFSs serve as consolidation and deconsolidation points, allowing the efficient movement of LCL cargo in a containerized shipping environment. In the world of global container shipping, most cargo is transported in full container loads (FCL) between major ports. However, many shippers have LCL cargo that is too small to fill an entire shipping container. CFSs provide a solution by consolidating LCL cargo from multiple shippers into shared containers for overseas transport. CFSs play an indispensable role in global supply chains by facilitating the intermodal movement of LCL cargo. This article will examine the functions, benefits, and future trends of CFS facilities.
  1. 1) Key functions1) Key functions

    CFSs perform a range of essential services related to the handling and transport of LCL cargo:

    Flow of LCL

    1. Consolidation and Deconsolidation
    The primary purpose of a CFS is to consolidate less-than-container-load cargo from various shippers into shared containers for export. This allows for the efficient containerization of cargo that is not large enough to fill a full FCL container. The reverse process of deconsolidation splits up incoming containers to sort and deliver import cargo to the correct recipients.

    2. Warehousing and Storage
    CFSs include warehousing space to temporarily store inbound and outbound cargo. This provides a buffer location for staging cargo before loading or after unloading. Storage periods are typically short-term, ranging from a few days to a couple of weeks.

    3. Cargo Handling and Processing
    CFSs have equipment and staff to handle a range of cargo handling tasks, such as unloading, sorting, repacking, labeling, weighing, and loading cargo. Some additional processing services include fumigation, inspection, and customs clearance.

    4. Documentation and Communication
    CFS operators prepare shipping documentation, track cargo status, and coordinate with shippers, carriers, customs brokers, and other supply chain partners. This facilitates the smooth international movement of LCL cargo.

  2. 2) Benefits of Using CFS2) Benefits of Using CFS

    Utilizing CFS facilities provides significant benefits for shippers, carriers, and the overall efficiency of intermodal freight transportation:

    1. Cost Savings
    CFSs reduce transport costs for LCL shippers by allowing them to ship cargo in shared containers rather than paying for entire FCL containers. Carriers also benefit from the higher utilization achieved by consolidating LCL cargo into containers.

    2. Access to Containerized Shipping
    CFSs provide LCL shippers with access to cost-effective containerized ocean transport. Without CFS facilities, it would be difficult for small shipments to access container shipping networks.

    3. Efficient Intermodal Connections
    By facilitating the containerization of LCL cargo, CFSs enable efficient transfers between shipping modes such as truck, rail, and ocean. This allows seamless door-to-door intermodal transport.

    4. Flexibility for Mixed Cargo
    Shippers with mixed cargo, irregular volumes, or seasonal peaks can benefit from the flexibility of using CFS facilities rather than committing to full containers.

    5. Customs and Documentation Expertise
    CFS operators have specialized expertise in customs clearance, cargo documentation, and compliance for international shipments. This takes a significant burden off shippers and carriers.

    Containers stacked image (출처 : Firefly, Adobe)
  3. 3) Differences from CY(Container Yard)3) Differences from CY(Container Yard

    1. Type of Cargo Handled

    CY: Deals exclusively with Full Container Load (FCL) shipments. This means the entire container is booked by and dedicated to one consignor or consignee.

    CFS: Handles Less than Container Load (LCL) shipments, where cargo from multiple consignors is consolidated into a single container or deconsolidated into separate shipments.

    2. Primary Functions

    CY: Mainly a storage facility for containers. It's used for holding containers before they're loaded onto a ship or after they're unloaded. The focus is on the containers themselves, not the cargo inside.

    CFS: Functions as a processing hub for cargo. It's where cargo is consolidated or deconsolidated, packed or unpacked, and temporarily stored. The focus is on handling and processing the contents of the containers.

    3. Location and Proximity to Ports

    CY: Usually located within or adjacent to a port. Their location is strategic for easy transfer of containers to and from ships.

    CFS: Can be located in port areas but also found inland, closer to manufacturing or commercial centers, facilitating easier access for cargo consolidation and distribution.

    4. Services Offered

    CY: Limited to the storage and transfer of containers. It offers fewer services in terms of cargo handling.

    CFS: Provides a range of services including packing, unpacking, sorting, labeling, and temporary storage of cargo. Also handles documentation and customs clearance for LCL shipments.

    5. Importance in the Supply Chain

    CY: Essential for the smooth movement of containerized cargo in and out of ports, acting as a transit point for FCL shipments.

    CFS: Crucial for optimizing LCL shipments, making containerized shipping accessible for shippers with smaller volumes of cargo and enhancing the efficiency of cargo distribution.

    6. Target Users

    CY: Primarily serves shippers and consignees dealing with large volumes of goods sufficient to fill entire containers.

    CFS: Cater to a broader range of shippers, including those with smaller quantities of cargo, who benefit from the consolidation services.

    Images of ships and containers on the sea (출처 : Firefly, Adobe)
  4. 4) CFS Charge4) CFS Charge

    A CFS Charge is a fee imposed for various services related to handling and processing cargo at a Container Freight Station. These services include the consolidation and deconsolidation of cargo, storage, and handling. It primarily applies to LCL shipments where individual shipments from different shippers are consolidated into a single container for shipping or deconsolidated upon arrival at the destination.

    Components of CFS Charge
    1. Handling Fee: This part of the CFS Charge covers the costs associated with the physical handling of cargo. This includes loading and unloading cargo from vehicles, moving it within the CFS, and organizing it for either storage or consolidation into containers.

    2. Consolidation/Deconsolidation Fee: When various shipments are consolidated into one container for transport or separated into individual shipments upon arrival, a fee is charged for this service. This process requires careful organization and management to ensure that each consignment is properly accounted for and placed.

    3. Storage Fee: If cargo needs to be stored at the CFS for a certain period, a storage fee is charged. This fee compensates for the use of storage space and the security provided to safeguard the cargo.

    4. Documentation Fee: For processing the necessary shipping and customs documentation, a fee may be charged. This involves ensuring all paperwork is in order for the legal transport of goods.

    CFS charges are an important consideration in the overall cost of shipping, particularly for LCL shipments. These charges contribute to the operational efficiency of the CFS, allowing them to provide essential services like cargo handling, storage, and documentation management. Shippers should factor these charges into their logistics planning and budgeting for accurate cost estimation.

  5. In summary, container freight stations provide vital logistics services that support global trade. CFS facilities add value through cargo consolidation and handling, temporary storage, customs processing, documentation, and intermodal coordination. By facilitating the containerization and international transport of LCL cargo, CFSs enable shippers to access overseas markets efficiently and affordably. The essential functions performed by container freight stations will continue to advance through innovations and process improvements.