WHAT HAPPENS TO YOUR CARGO AT CONTAINER FREIGHT STATIONS?

What is a container freight station?

A container freight station (CFS) is a warehouse where goods are consolidated into or de-consolidated from containers for transport to their next destination. They’re an integral part of LCL shipments; if you ever use LCL, then you should have a good grasp of what happens to your shipments when they pass through CFS warehouses.

Where do these warehouses fit in the importing process of your goods?

If you purchased less than a container’s worth of goods, your shipment will head to a warehouse (CFS) for consolidation in the origin country.  There, your shipment will be loaded into a container along with other people’s goods, before the container is taken aboard a ship for transportation to the destination country.

They’re typically located close to seaports or airports. and in major inland metropolitan cities to bring goods as close to their final destination as possible and thus keep the delivery cost for the final mile as low as possible.

Once the container reaches the destination country, it will be taken to another warehouse so that your goods can be de-consolidated and separated from the other shipments. The warehouse will then store your goods until you or a trucker picks it up.

What’s needed to pick up your goods from the warehouse (CFS)?

The warehouse will need a copy of the following two documents:

• a Delivery Order, which will give them permission to release the goods to either a designated trucker or to you
• the Customs Clearance release, which shows the warehouse that Customs gave the green light for your goods to be released to you

They should receive these documents before you or your trucker head to pick up your shipment, but they will also need to be presented in hand at the time of pickup.

Why this is important for shippers

Shipping LCL means that goods are handled by more parties than when shipping FCL. That increases costs and transit time as well as the risk of mishandling and damages. Furthermore, LCL cargo has a greater chance of going through Customs exams. That’s because if any single shipment in a container box has to be examined, then the whole container will be pulled for an examination by Customs.

Will there be any warehouse charges?

Unfortunately, yes, unless your shipment is a full container.  The warehouse charges applicable are for shipment handling and sorting (including using a liftgate to offboard goods from trucks).  These charges can be paid at pickup in cash (or through a broker’s check, depending on the warehouse’s payment conditions).

In addition, if your goods sit in the warehouse for too long, past the Last Free Date (which they will specify), your shipment will incur daily storage charges that will increase exponentially over time.  These storage fees are also known as demurrage charges. If you don’t pick up in time, your goods may be sent to Government Order warehouses, where even higher storage charges accrue and your goods may eventually be sold at auction to cover the cost. Warehouses are very serious about getting people to pick up their goods on time – these are not fun to see on your bill!

Remember, warehouse charges aren’t the only fees you’ll see in your importing process!