Understanding CFS and CY terms in logistics

The efficiency and reliability of freight shipping are paramount in your logistics operations. Central to this process are the terms CFS (Container Freight Station) and CY (Container Yard), which serve as the backbone of container logistics.

Read on to learn about these terms, their roles, and practical applications in your supply chain.

CY vs. CFS

What is a CY (Container Yard)?

A Container Yard (CY) refers to a designated outdoor area within a port or terminal where shipping containers are stored temporarily before loading onto a vessel or after being unloaded.

What is a CFS (Container Freight Station)?

A Container Freight Station (CFS) is located either within a port or at an inland location where goods are loaded into or unloaded from containers. It focuses on the consolidation and deconsolidation of cargo.

Though both these facilities handle containers, there are key differences between them:

READ MORE: What is LCL and FCL shipping?

Choosing between a CY and a CFS depends on your specific needs. A CY might suffice if you have a full container of your own goods. But, for LCL shipments or FCL requiring additional services, a CFS is the way to go.

Why do I need to understand CY and CFS in shipping?

Understanding the dynamics of CFS/CY operations, the services they provide, and how they fit into the larger picture of international logistics not only simplifies the complex logistics process but also enables you to inform and improve your strategies for costs, speed, and reliability.

Cost efficiency

• Optimising LCL shipments: By understanding how CFS facilities consolidate cargo, you can leverage cost savings by sharing container space for LCL shipments. This can be relatively cheaper than paying for a full container when you don’t have enough cargo to fill it.
• Negotiating rates: Understanding the different services offered by CYs and CFSs allows you to compare costs and negotiate better rates with shipping carriers or logistics service providers (LSPs).

Better logistics management

• Choosing the right service: Understanding the strengths of CYs (secure storage for FCL) and CFSs (consolidation, customs clearance for LCL) allows you to choose the most efficient option for your specific cargo/container.
• Meeting deadlines: Knowing cut-off times for CYs ensures your FCL shipment arrives on time for loading onto the vessel. Similarly, understanding CFS timelines helps you plan for LCL consolidation and avoid shipping delays.

Enhanced transparency and visibility

• Cargo tracking: Since both CYs and CFSs are involved in the shipment movement, understanding their roles helps track your cargo’s location more precisely and effectively.
• Identifying potential issues: Knowing the limitations of CYs (limited services) and CFSs (security compared to CYs) helps you anticipate issues and act proactively, such as arranging additional packing or insurance if needed.

CY/CFS logistics models

You might have come across terms like CY/CY, CY/CFS, or CFS/CFS on shipping documents. These indicate the origin and destination points for the container. Let’s take a closer look at each.

CY/CY

Process: In the CY-CY model, the responsibility of the shipping line begins and ends at the container yard. The container is delivered from the origin port CY to the destination port CY.

Essentially, the shipper delivers the cargo to the CY for loading onto the ship, and the consignee collects it from the CY at the destination port. This method is straightforward and often preferred for its simplicity and efficiency.

Feature: Cost-effective for high-volume shipments that fill a container. It offers faster clearance at the destination port if customs paperwork is pre-arranged.

Example: A company ships a container full of furniture (FCL) from Shanghai (China) to Los Angeles (USA). The container moves from the CY in Shanghai directly to the CY in Los Angeles for the consignee to pick up.

CY/CFS

Process: combines the straightforwardness of CY operations with the flexibility of CFS facilities. In this scenario, the shipper delivers a container to the CY, and after shipping, it is moved to a CFS at the destination for deconsolidation.

Feature: Cost-effective and suitable for FCL shipments with multiple consignees. It allows for individual pick-up at the CFS.

Example: A company imports a container of electronics (FCL) to Singapore. The container arrives at the port CY and is delivered to a nearby CFS, where individual retailers can pick up their orders.

CFS/CFS

Process: The CFS-CFS model is the most comprehensive, involving the consolidation and deconsolidation of cargo at both the origin and destination points. Cargo is delivered to a CFS by the shipper, where it is consolidated with other shipments into containers for the journey. Upon reaching the destination, the container is moved to another CFS for deconsolidation and collection by the consignee(s)

Feature: Cost-effective for smaller shipments (LCL) that don’t fill a container. It also allows container space to be shared with other shippers for freight consolidation. Additional services like customs clearance may be available at the CFS.

Example: A clothing company sends several boxes of clothes (LCL) from Mumbai (India) to London (UK) via CFS. The origin CFS consolidates the shipment with others going to London, and then the destination CFS separates it for pick-up by the consignee.

Choosing the right model

Before selecting a particular logistics model, consider factors like the volume of goods, the handling capabilities of the sender/receiver, costs involved, and the need for de/consolidation. Understand and leverage these models wisely to optimise your shipping operations.

At Maersk, we have intermodal services to move your containers between container yards and inland facilities. Check out our Inland Transportation Services.

Interested in LCL? Book your LCL shipments online and you’ll get an instant price and a booking confirmation within four hours. Explore our LCL services.