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OceanCFS

Container Freight Station

A warehouse where LCL cargo from several shippers is consolidated into, or unpacked from, shared containers.

What is Container Freight Station?

A container freight station (CFS) is a warehouse facility, inside a port or inland, where less-than-container-load cargo is received and stuffed into containers for export (consolidation), or where import containers are stripped and the cargo sorted for release to individual consignees (deconsolidation). A CFS handles loose cargo by package or pallet, whereas a container yard handles sealed containers. Bill of lading service terms such as CFS/CFS, CY/CFS and CFS/CY show whether the carrier's responsibility starts or ends at a freight station or at a container yard. In the US, an independent container station that receives unentered imports must be approved by the CBP port director and covered by a bond on CBP Form 301 (19 CFR 19.40). In the EU, import goods held at such facilities are in temporary storage, which is limited to 90 days before the goods must be placed under a customs procedure or re-exported (UCC Article 149).

Why it matters for forwarders

For forwarders, the CFS is where LCL profitability is decided: receiving cut-offs, tally accuracy, re-measurement and handling tariffs all happen here. Destination CFS charges for devanning, handling and storage are normally billed to the consignee and often surprise importers who bought on an origin-inclusive LCL rate, so quotes should list them explicitly. The CFS re-measures cargo, and the measured volume, not the shipper's declared volume, usually becomes the chargeable W/M, so check dimensions at receipt rather than at invoicing. US imports at a CFS remain under customs control until released, and unentered goods must be notified for transfer to a general order warehouse if not entered within 15 calendar days of arrival (19 CFR 4.37). At origin, stuffing according to the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) reduces damage claims and weight misdeclarations.

CFS FAQ

What is the difference between a CFS and a CY?

A CFS is a warehouse where cargo is loaded into or unloaded from containers, so it handles individual packages and pallets. A container yard stores and interchanges full or empty containers as sealed units without opening them.

Who pays CFS charges?

Origin CFS charges are usually paid by the shipper or included in the LCL export rate, while destination CFS charges for devanning, handling and storage are usually billed to the consignee. The exact split depends on the quote, the Incoterms rule and the forwarder's tariff, so it should be stated in writing.

Is a container freight station a bonded facility?

Often yes for imports. In the US, a container station receiving unentered cargo needs CBP port director approval and a bond on CBP Form 301 (19 CFR 19.40), and in the EU import cargo at such facilities is in temporary storage for up to 90 days.

What happens if cargo misses the CFS receiving cutoff?

It is usually held for the next consolidation sailing, which delays transit and can add CFS storage charges. Book delivery to the CFS with a margin before the published receiving cutoff.

Sources

  1. 19 CFR 19.40: Establishment of container stations, Legal Information Institute, Cornell Law School
  2. Temporary storage, European Commission, Taxation and Customs Union
  3. 19 CFR 4.37: General order, penalties, Legal Information Institute, Cornell Law School

Rules and figures change. Check the current text with the issuing body before relying on it.

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