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What is a CFS Warehouse?

What is a CFS Warehouse?

At Unilogic, we are not only leaders in the supply chain industry, but we also are leaders in the warehouse and storage industry. We help international and domestic enterprises with holistic solutions to become the most efficient and adequate bridge between them and their clients. 

This is why we see the need for flexible and scalable warehouse solutions. Why? Many manufacturers try to meet rising industry challenges and consumer demands. This makes it increasingly important for our clients to eliminate waste, reduce shipping costs, shorten inventory lead times, and improve overall quality in the delivery of their products.

The bottom line is: Companies now temporarily run out of warehousing space due to ebbs and flows of industry trends. This is why the need for CFS warehouses has become greater than ever. But, what is a CFS warehouse?

What is a CFS Warehouse?

Basically, a CFS (Container Freight Station) warehouse refers to a bonded facility that acts as temporary storage for goods that are entering and leaving the country. A CFS warehouse consolidates or de-consolidates freight before it is prepared and ready for the next leg of its journey. Most of these CFS warehouses are located close to ports of entry such as airports, ocean container ports, and major railway hubs.

Consolidation and Deconsolidation: What is this?

What does it mean when a CFS warehouse consolidates or de-consolidates freight? Consolidation is the process when you combine multiple LCL (less-than-container load) shipments to form an FCL (full container load), while de-consolidation is the reverse process. Does this mean a CFS deals only with LCL cargo? Not necessarily. CFS warehouses also handle FCL cargo too. 

A CFS warehouse is a storage facility for imported and exported goods. It was built originally with the intention of reducing congestion at India’s ports and terminals first. Although CFS may have been traced before to Indian warehouses, it is now a worldwide term.  

The majority of the time, CFS refers to a warehouse where collected items and goods that don’t fit into one box are kept, stored, and wait for other products to fill a container before being transported to another venue. As such, the CFS is used with Less than Container Load (LCL) shipping where one shipment is not enough to fill a container.

The cargo is once again divided, packed into a Full Container Load (FCL) shipment, and sent to the next stage when it reaches the facility. When a client does not have enough goods to fill a container and chooses to share the space in a container with those of another shipper instead of purchasing an entire container, LCL is more cost-effective.

Benefits of having a CFS Warehouse

CFS warehouses have helped many small and large companies facilitate some of the toughest tasks. Another benefit? CFS warehouses are not CIF (cost, insurance, freight) facilities, so it costs a client way less to use CFS than CIF facilities.

In 2010, the Indian government opened up India’s multi-brand retail sector. This allowed foreign investors access to India’s markets through multi-brand retail chains that could buy directly from international producers and wholesalers. CFS facilities speeded up this process by consolidating cargo from different locations into an FCL container before shipment to another port – where they were then loaded onto trucks and delivered directly to shops for sale to shoppers.

CFS warehouses also provide additional benefits like the following:

  • Improved inventory accuracy
  • Reduced transportation
  • Demurrage charges (storage fees).
  • It speeds up the entire process from purchase to delivery of consumer goods, especially for retailers with a vast product inventory.
  • It also improves a client’s ability to transport and deliver cargo quickly and more efficiently.

The main reason many companies choose CFS warehouses is that they help improve operational speed – including turn-around time. How? By reducing lead times after cargo is collected at origin, which includes proper packing and consolidating materials into an FCL container before shipment even takes place. What does this mean?

Basically that CFS benefits everyone involved in processing shipments: from shippers to brokers, freight forwarders, importers, and exporters alike. CFS warehouses offer flexible storage solutions, as companies can scale their warehousing capacity depending on how much space they need.

What is a CFS Warehouse Review              

  • What are they? CFS warehouses are shipping facilities that store and process goods for import or export shipments.
  • CFS warehouses consolidate cargo from different locations into an FCL container before shipment to another port. There they are then loaded onto trucks and delivered directly to shops for sale.
  • CFS warehouses also provide additional benefits like improved inventory, accuracy, reduced transportation, and/or demurrage charges (storage fees).
  • CFS warehouses offer flexible storage solutions, as companies can scale their warehousing capacity depending on how much space they need.
  • They help reduce congestion at ports and docks, reduce labor costs for the handling of cargo by consolidating it into fewer containers, and ultimately speed up processing allowing manufacturers to process their orders faster.
  • CFS warehouses offer flexible storage solutions, as companies can scale their warehousing capacity depending on how much space they need.
  • CFS warehousing services are a cost-effective way for companies that don’t have a lot of goods to fill a container to ship their goods overseas.

Unilogic and CFS Warehouses

At Unilogic, we are proud to announce the opening of our newly constructed 178,516 Sq.Ft. warehouse located at 9100 W Belmont Ave., in Franklin Park, IL 60131. This state-of-the-art facility – built in 2020 – is fully dedicated to airfreight services to meet current industry demands

A certain customer of ours had ordered more goods than the warehouse capacity allowed. This client increased orders anticipating a $200 billion federal government tariff on specific items and commodities from China, as part of a case study.

Our client needed to forego the formality of standard contracting and onboarding due to time constraints, and they wanted a warehousing partner that could provide on-demand storage space to house products swiftly. Our client had engaged another warehouse service provider, but their warehousing capacity was soon exceeded. 

Unilogic has grown in response to the increasing demand for next-day delivery services, which may often determine whether or not consumers place an order. We have evolved into a niche market expert in providing contractually flexible and/or long-term solutions that allow our partners to have their products on hand and deliverable to their clients on-demand.

Unilogic was able to provide this service promptly, on short notice, loading over 6,000 pallets for a large client in Open-Frame Service Racks. Unilogic’s growth in this market is matching the speed of our partners’ market share, as we continue to expand into adjacent markets.

The need for flexible and scalable warehouse solutions is growing as manufacturers try to meet rising industry challenges and consumer demands. It is increasingly becoming important for our clients to eliminate waste, reduce shipping costs, shorten inventory lead times, and improve overall quality in the delivery of their products. Companies often typically temporarily run out of warehousing space due to ebbs and flows of industry trends.

At Unilogic, we know that various industries need to establish a central distribution point or flexible on-demand storage solutions. This is why our objective is to create an on-demand space for any client, like CFS warehouses, in order to house products quickly.

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