CFS (Container Freight Station) Fee

Definition

The CFS Fee, or Container Freight Station Fee, is a mandatory logistics charge applied to all LCL (Less than Container Load) shipments. This fee compensates the CFS operator for the specialized handling, documentation, storage, and processing required to manage multiple smaller shipments within a shared container. It is typically assessed based on the volume (cubic meters) of the cargo.

Core Process and Function

CFS services are required at both the origin and destination ends of an LCL movement.

Destination Function: Upon the container's arrival at the destination port, the cargo is transferred to the CFS. Here, the container is deconsolidated (stripped or devanned). The individual LCL shipments are separated, organized, and prepared for final delivery via truck to the consignee. The primary CFS Fee usually reflects this destination handling service.

Origin Function (Consolidation): If the shipment is managed under Incoterms that assign origin charges to the buyer (e.g., Ex Works), a CFS fee may also appear under Origin Charges. This charge covers the costs incurred at the origin port when the carrier collects multiple small shipments and consolidates them into a single FCL container for ocean transport.

Expert Advice

Shippers should recognize that the CFS Fee is non-negotiable for LCL movements. To manage costs, focus on optimizing cargo density and minimizing volume. Always verify whether your quoted Incoterms (e.g., DAP vs. FOB) allocate the destination CFS Fee to you or the seller. Be aware that this fee often represents a significant portion of the total destination handling charges for LCL shipments.

Key Takeaways

• Mandatory for all LCL shipments.

• Covers both consolidation (origin) and deconsolidation (destination).

• Calculated based on shipment volume (cubic meters or weight equivalent).

• Crucial component of destination handling costs.