Meaning, Functions and Role in Shipping
Previously, the goods were sorted duringonboardingwhileloadingthe smallershipments. This process frequently resulted in the minglingof all the goods/products. Containerized shipping, on the otherhand, allows goods to be classified and organized before they are loaded. By optimizingthe process of how shipments are onboarded, the containerized system has transformed how internationalshipping operates. CFS, or"ContainerFreightStations,"aid in the consolidation of smallershipments, or Less ContainerLoad (LCL), and thus play an importantrole in the containerized shippingprocess.
What is ContainerFreightStation (CFS)?
It is a warehouse station in charge of cargo consolidation ordeconsolidation before products/goods are imported orexported. The CFS is a location where goods are stored before and afterloadingand unloadingcargo.
When it comes to LCL, the cargo is loaded into one containerand broughtto a CFS to be consolidated before the goods are shipped to theirdestination.
The CFS is run by a shippingline orterminal, and its warehouseis nearthe portor shipping terminal. These stations are also in charge of customs clearance procedures and shipmentdocumentation. Itis a customs notified zone whereall transactions are subjectto customs authentication. A Customs House Agent(CHA) is the primary pointof contact between containerfreightstations and the parties involved in the transaction.
WhyChoose a ContainerFreightStation?
A ContainerFreightStation orCFS will help facilitateintermodal transportforyourcargo with adequate safety measures and tracking. CFS plays an importantrole in optimizingthe process of sendingsmaller shipments to theirrespective locations. Here are afew reasons why CFS service is so important in importand exportlogistics:
· Goods are consolidated into various types of containers atthe CFS, and each vessel is assigned a unique identification number, allowingthe traderto track the containerand the product.
· Containerized goods sentvia CHS reduce the risk of damage, facilitatingasmooth transaction between the exporterand importer.
· A properlistis kept, which includes the importer/name, exporter's CHA agentname/house, product, onboarding/unloadingport, productname, truck number, shippingline, quantity, size, and so on.
· At the gateway ports, customs clearance is not required.
· Because CHS acts as a concentration point for smaller shipments, it helps to reduce empty container movement, makingLCLshipments more cost effective.
· Dock port automation forcontainerloadingand unloading.
Role of CFS in Import
Containerfreightstations are used forboth embankmentand disembarkation of goods from the point of origin (export)to the destination (import). The steps taken by CFS duringimportand exportare detailed below:
CFS's Role in ImportingGoods CFS functions as an extension of aport. When importinggoods, they can be sentdirectly to the CFS rather than directly from the port, significantly reducingportcongestion.
For example, Company ABC in Indiais receivingashipmentfrom Company XYZin the United States. The exporterwill preparethe necessary exportdocuments and notify the CHA house accordingly. When the goods arrive at the port, they are transferred to the CFS, and the subsequentprocesses are carried out
Step 1: Customs inspects the goods atthe Indian port before stackingthem atthe station.
Step 2: Before transportingthe cargo to CFS, the steameragents/liners/importers mustfilethe Import General Manifestatthe port.
Step 3: The CFS then de stuffs the containers'contents.
Step 4: The CHA/Importermustfile aBill of Entry with customs, afterwhich the goods will be assessed, and duty paid.
Step 5: Followingcustoms clearance, the departmentissues an "outof charge" order, and the goods are released from the CFS to the traderwith a "gate pass."
Role of CFS in Export
As previously stated, aCFS oversees consolidatingcargo and stuffingitinto containers before the goods are shipped. This procedure reduces congestion atthe portof origin and ensures thatthe cargo is shipped as efficiently as possible.
For example, if Company ABC from Indiaships Company XYZin the United States, the CFS export procedure will be as follows:
Step 1: The exporterwill load the goods onto atruck and deliverthem alongwith the shippingbill to the designated CFS.
Step 2: The goods will then go through the loadingand carting process.
Step 3: In the warehouse, the goods will be scanned and verified beforebeingstuffed into containers.
Step 4: The customs officerseals the containerand transports itfrom the CFS to the port.
Step 5: Once the goods arrive at the port, they are dispatched viathe shippingline (theshippingline is the company decided by the party forprocessingthe shipment).
What are the primary responsibilities of a ContainerFreightStation?
The followingare the major freightstation accomplishments:
· Receivingand deliveringcargo
· Cargo consolidation and deconsolidation (forLCLshipments)
· Exportcontainerstuffingand importcontainerde stuffingorstripping
· Temporary storage for cargo and laden orempty containers, as well as transitor re export.
· Rail/road transportation to and from ports
· Customs authorities examine and assess export importshipments forcustoms clearance.
· System fortrackingcontainers or cargo
The distinctionbetweenCFS, ICD, Container Yard, and Bonded Warehouse
An ICD, or Inland ContainerDepot, is atype of transitfacility likeaCFS. However, ICDs are mostly found in the country's interior, whereas aCFS is a customs space nearsea/ocean ports.
An ICDcan operate as a separate entity, whereas the CFS falls underthe jurisdiction of the customs house.
A bonded warehousestores goods thathave already been cleared by customs. The goods broughtinto CFS, on the otherhand, mustgo through customs verification and clearance.
In shipping, aContainerYard (CY) is a designated areaatthe port where FCLcontainers are broughtand stored before beingloaded onto the ship. While CFS has the same functionality, the station only handles LCL shipments ratherthan FCL .