HomeĐời SốngWhat is cfs charge? definition and meaning

What is cfs charge? definition and meaning

07:22, 07/04/2021

This guide explores all the vital aspects you need lớn know about container freight station fee.

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So, before you seek for services in a CFS facility, read this guide.

Let’s dive sầu right in.


What is CFS Fee?

A Container Freight Station fee refers to lớn an amount of money charged for loading, unloading as well as packaging services at a warehouse.

This charge mostly applies lớn LCL shipments.

Once your LCL shipment arrives at the port, it is transported to a container freight station where unloading takes place.

Each cargo from different importers is separated from the rest and loaded into lớn a truck.

Thereafter, the truông xã transports the goods khổng lồ the warehouse.

The fee charged for this service will vary depending on the number of goods or the weight of goods. The more goods you have the higher the CFS fee.

However, sometimes the fee remains similar for specific categories of goods.

What are CFS Fees Used For?

CFS fees are applied to cater to lớn the services offered in a container freight station. Such services are not limited to;

Consolidation of goods in the port of origin – This involves combining different shipments from different importers lớn one container.Deconsolidation of goods in the port of destination –Disintegrating shipments from different importers.Smooth transportation of your container.Storage of the goods.

Which Activities Attract CFS Fees?

CFS fees are one important aspect that any importer should be keen on following up on as it might result in additional costs.

Generally, the CFS fee is charged khổng lồ cater lớn the preparation activities conducted in the freight station for your goods before or after being shipped lớn the destination port.

Some of the activities that will attract CFS fee are not limited to;

Storage of goodsDaily Floor space rent for containersContainer inspection. It includes scanning the container lớn confirm that the cargo is the declared one.Handling of your goods when passing through customs.Movement of your goods from the container freight station.In case a container is damaged your cargo will need to be shifted khổng lồ another container. This will in turn attract CFS fees.Any amendment on documents will attract a CFS fee.Before the containers are loaded on a vessel, they are weighed lớn confirm that they meet the required weight. This attracts a CFS fee.Sweeping the container.Sometimes, vessels are used to load & unload containers, & when such vessels are used CFS fee applies.Repairing the container.

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LCL vs FCL

FCL shipment doesn’t need a CFS fee. Container freight station only serves LCL shipments & therefore the CFS fee for FCL won’t be applicable.

Generally, it’s always more expensive to lớn ship via LCL as compared to lớn FCL owing to the consolidation and deconsolidation tasks.

Do You Pay CFS Fees During the ‘Free Period’?

Yes, once you pay for CFS fee it covers the “miễn phí period”. After the expiry of the không lấy phí period, you will be expected to pay demurrage.

This charge is meant khổng lồ cater to the storage & re-marshaling.

What are the Payment Options for CFS Fee?

CFS fees can be paid through the various payment options used in freight payment. Some of these payment options are not limited to;

The importer’s and exporter’s banks are the ones taking care of payments and therefore both parties are well secured.

The importer’s bank is responsible for making payments to lớn the exporter.

Cash in advance – As simple as this payment method might be, it poses risks to both the seller & buyer.

Therefore, using cash in advance would be ideal when dealing with a person that you know well.

Cash against documents –In this payment option, the importer’s ngân hàng has all the control. Meaning, it can release shipment once the payment from the importer is received.

Why bởi you Need lớn pay Attention to CFS Fees?

Whether you are exporting or importing goods via LCL shipping, you need lớn be knowledgeable on what the CFS fee entails.

CFS fee is not a standard amount & thus you can either kết thúc up paying the required amount or more than you should.

Before paying the CFS fee, ensure that you understvà what the fee covers and the repercussions that follow if you fail or delay paying it.

Delaying the payment will result in delays in your cargo.

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This might in turn lead lớn additional charges once the “không tính phí time” expires.

Ensure that both parties involved have sầu a clear understanding of the agreement to avoid any misunderstandings later.

Such are the causes of bad relationships of importers and exporters with the customs officials.

Rarely, the customs officials in the country of origin might choose khổng lồ collaborate with custom officials in the destination country.

Upon doing this, they agree to charge an all-inclusive fee covering both countries.

Being informed on such practices is important in ensuring that you have sầu adequate knowledge for the smooth running và decision-making of your business operations.

Why vì CFS Facilities Charge Higher CFS Fees for Reefer và Hazardous cargo?

Reefer and hazardous cargo require special treatment as opposed lớn normal types of goods.

Such cargo will need refrigeration containers & dangerous goods containers respectively lớn prevent them from going bad.

In addition to lớn that, proper handling of hazardous materials is important as they might cause harm.

Owing to this, the amount of CFS charged is normally higher on reefer and hazardous cargo.

What Additional Charges vị CFS Facilities Charged on Top of the CF Fee?

Apart from the CFS fee, CFS facilities impose the following additional charges that you should be aware of;

Container repairs chargesPort entryAmendments/ adjustments in documentsLashing, chocking, & dunnage to secure the cargoTransportation into lớn và out of the CFS port.Moving cargo from damaged containers to lớn better containers(reworking).Sweeping of the containerLabour for consolidating & deconsolidating the goods.Reefer handlingShifting cargo with CFSAuthentication of the weight of the packed container before being loaded into lớn the ship.

Is CFS Fee the same for all Types of Containers?

No, it’s not.

CFS fee varies from one container khổng lồ the other depending on the size of the container.

The following are the form size of different containers; 10-foot, 20-foot, 45-foot, and 40-foot.

The commonly used ones are trăng tròn and 40-foot containers.

Keep in mind that the fee charge will also vary from one country khổng lồ the other and thus you need lớn confirm with your local authorities.

Can Cargo be Released from CFS Before Payment of the CFS Fee?

No, it cannot.

You need lớn clear your CFS fee before your cargo is released from the container freight station.

Failure to vị so will not only result in delays but also a poor relationship with customs officials which might affect your future shipment.

Can you Pay CFS Fees online?

Yes. CFS fees can be paid online depending on the agreement you have with the customs officials.

What is a CTF Fee?

CTF fee otherwise referred to as Clean Truck Fee was initially started in Angeles và long beach ports to curb pollution of air.

It regulated the entrance of trucks that caused pollution in the port & allow the entrance of “clean trucks” which reduced pollution in L.A port.

To achieve sầu this, new trucks had to lớn be bought, and therefore lớn recover the money spent on the new trucks a clean truck fee was introduced.

Is CTF Fee Charged as Part of the CFS Fee?

No, it is not.

CTF fee is charged separately from the CFS fee.

CTF fee is normally charged after all cargo has been claimed.

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How Can you Reduce CFS Fees?

There are several ways you can implement lớn reduce the costs associated with CFS fees.


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