Container Freight Station (CFS)

What it means

The Port Authority of New York and New Jersey defines a CFS as a shipping dock where cargo is loaded (stuffed) into or unloaded (stripped) from containers.^[1] In ocean freight it is mainly the LCL facility: at origin, small shipments from several shippers are consolidated into one container, and at destination that container goes to another CFS where the cargo is unpacked and separated for pickup.^[2]

For imports, U.S. Customs and Border Protection (CBP) regulates container stations under 19 CFR 19.40 to 19.49. A container station independent of the importing carrier can be set up at a port with the port director's approval and a bond on CBP Form 301.^[4] Containerized cargo can then move to it from the place of unlading, or arrive by bonded carrier, before entry is filed, for the purpose of breaking bulk and redelivering the cargo.^[5]

What is a CFS in shipping?

In practice the term covers two overlapping things:

• A consolidation and deconsolidation warehouse. Forwarders and NVOCCs use origin and destination CFS facilities to combine and split LCL cargo, and both ends charge a CFS fee.^[2]
• A CBP-approved container station. A bonded facility where import containers are opened and broken down while the cargo is still under customs control.^{[4] [5]}

CBP rules for container stations (19 CFR 19.40 to 19.49)

The regulations set out how an import container gets from the terminal to the station and who is responsible on the way:

• Transfer application. The station operator applies, in duplicate, to transfer a container intact to the station, listing the containers, carrier, arrival date and pier, with an abstract of the carrier's manifest attached.^[6]
• Approval and haulage. Once approved, the application is the permit to move the container. A bonded cartman or bonded carrier generally moves it, though the operator may use its own vehicle.^[8]
• Liability hand-off. The carrier stays liable under its bond until the station operator formally receipts for the merchandise. Carriers must also provide an abstract manifest showing each shipment's bill of lading number and container marks.^[7]
• Security. Areas where bulk is broken must be secured against anyone not on the employee list given to the port director, and the station must provide workspace for CBP officers.^[9]
• Entry deadline. Merchandise not entered within the time allowed is placed in general order. Entries for goods at a station must show that the merchandise is there.^[10]

CBP also charges a fee to establish, relocate or alter a container station.^[4]

How to calculate CFS charges

There is no single public CFS rate. Each operator, carrier or NVOCC sets its own, and the rate is applied through a published tariff or a negotiated arrangement. A common basis, shown in the tariff examples below, is the revenue ton, assessed on weight or measure (W/M).

1. Measure the cargo. Work out the shipment's volume in cubic meters (length x width x height of each piece) and its gross weight.
2. Compare weight and measure. One Crowley NVOCC tariff applies rates per cubic meter or per 1,000 kg (among other units), "whichever yields the greater revenue", and says W/M rates mean the rate giving the greater revenue is charged.^[11]
3. Apply the rate and the minimum. Multiply the higher figure by the tariff rate. A Crowley LCL rate page priced CFS-to-CFS cargo on 1 cubic meter or 2,000 lb, whichever yields more, in volume bands, and pointed to a separate rule for minimum bill of lading charges.^[12]
4. Check how add-ons are rated. The same Crowley tariff rates extra charges (arbitraries) on the same basis as the ocean freight.^[11]

Worked basis: a shipment of 3.2 m³ weighing 900 kg is billed as 3.2 revenue tons on a per-cubic-meter or per-1,000-kg basis, because the volume is larger. A dense 1.5 m³ shipment weighing 2,400 kg is billed as 2.4. Ask for the tariff item or quote that names the unit, minimum and any storage charges before the cargo arrives.

Why it matters

On an LCL import, ask the forwarder which CFS the container will go to, when the cargo will be available, and how storage is charged after free time ends.

Example

Hypothetical: a New Jersey retailer imports 5 cartons totaling 1.8 m³ and 400 kg from Asia as LCL. The forwarder's container is unladen at the port and moved under a CBP transfer permit to a bonded container station, where it is stripped and the retailer's cartons are separated. Once entry is filed and cargo is released, the retailer's trucker picks up the cartons at the CFS dock. The CFS charge is based on 1.8 revenue tons, because volume exceeds weight on a per-cubic-meter or per-1,000-kg basis.

CFS vs CY

A container yard (CY) is where ocean carriers accept and deliver full containers, hand out empties and take them back, and it sets the CY cutoff by which an export container must arrive for its sailing.^[3] A CFS handles the cargo inside the container. Flexport puts it simply: only LCL cargo goes through a CFS. A full container load moves as a sealed box through the CY.^[2]

Frequently asked questions