Understanding E-Commerce Container Freight Services

 Table of Contents: understanding e-commerce container freight services

• How CFS Works – understanding e-commerce container freight services
• ACE Air eManifest, eAWB & ACAS
• Using CFS to Clear Air Cargo Shipments under Section 321 Rules
• Reduced Fees with CFS
• CFS from CrimsonLogic
  
  

The tremendous growth in the eCommerce market is a great opportunity or many businesses. But to take full advantage of this lucrative market, businesses need efficient and cost-effective ways to move their large-volume air parcels in the supply chain. In this post, we’ll help you in better understanding E-Commerce Container Freight Services.

How CFS Works

A container freight station (CFS) is a key component of the supply chain. To better understand how container freight stations work and how companies can benefit from them, we need to look at three data submission programs for shipments: ACE Air eManifest, Electronic Air Waybill (eAWB) and ACAS.

ACE Air eManifest, eAWB & ACAS

Carriers in transit or bound to the United States are required to submit advance electronic manifest (eManifest) data to the U.S. Customs and Border Protection (CBP) at least four hours before they arrive.

The manifest document contains details of the shipment being transported by the air carrier such as:

• flight number and date
• marks of nationality and registration
• port of lading and unlading
• foreign airport of origin
• name of the owner or operator
• consolidator and de-consolidator (for consolidated shipments)
• air waybill type
• air waybill number/s
• number of house air waybills (HAWBs)
• number of pieces
• weight
• description/nature of goods
• shipper and consignee name and address
  
  

The electronic air waybill (eAWB), on the other hand, is a contract of carriage between the airline and the freight forwarder. This is the digital version of the paper AWB. The air carrier must submit eAWB data to the CBP for non-consolidated shipments and master air waybill data for consolidated shipments. Aside from these, the air carrier is required to submit associated house air waybills, unless another party submits the information to CBP. The CBP must validate the data before the shipment is cleared to load onto the aircraft at the foreign port. eAWB transmission is done through the Automated Manifest System (AMS) in ACE.

Aside from eAWB and eManifest, freight forwarders and carriers are required to submit a minimum set of house-level data elements to the CBP to meet the Air Cargo Advance Screening (ACAS) program requirements by the Transportation Security Administration (TSA) and CBP. Mandatory since June 2018, the ACAS program helps ensure safety and security by targeting high-risk air cargo and at the same time making way for legitimate shipments to be cleared faster. The CBP can verify the content of the cargo and other information even before the shipment departs the foreign airport.

The ACAS program is also used to clear massive amounts of Section 321 parcels entering the U.S. The ACAS filing requirements helps CBP identify illegal parcels and contraband while expediting the release of legitimate shipments.

Using CFS to Clear Air Cargo Shipments under Section 321 Rules

Importers typically clear Section 321 air shipments through an ECCF, CFS or a third-party service. CFS processes bulk shipments for clearance. It is a distribution facility where shipments are consolidated and de-consolidated. Container freight stations are typically near ports and major inland distribution cities.

Freight forwarders, shippers and other third-party logistics service providers are among the largest users of CFS. An advantage of using CFS to clear Section 321 shipments is that there is no processing fee.

The customs agency appoints a custodian for every CFS. They handle imports/exports at a bonded warehouse and help make sure that regulations are followed. A CFS consolidates less-than-truckload (LTL) shipments into a larger container with freight of different or the same customers being shipped to the same destination region.

Other CFS Functions:

• Customs processing (cargo examination, clearance, classification, valuation, manifest filing)
• Temporary storage space for export/import shipments
• Container stuffing (sealing and labeling of containers, clearing empty containers and moving full containers to port, container inventory, maintaining containers)
• Handling of break bulk or non-containerized cargo
• Logistics and transport services to and from the terminal
  
  

The importer, customs broker or the steamer agent submits the documents to the CBP and arranges for the shipment to be moved to a CFS. Once the cargo arrives, it is forwarded to the CFS where it is offloaded and de-stuffed. The entry and/or entry summary for cargo clearance is then filed. Once the CBP clears the shipment, the CFS agent releases it to the importer for final delivery.

Reduced Fees with CFS

CFS fees are based on the services performed. There are general fees such as transport, container maintenance and repairs, weighment, and amendments to documents. For exports, fees typically include cargo storage, rent for empty or laden containers, and container stuffing. For imports, fees can include charges for delivery, de-stuffing, cargo storage, handling for customs examination, rent for laden containers and container scanning.

ECCFs charge similar fees plus around $1 per HBL for Section 321 clearance. A CFS doesn’t charge the $1 per HBL fee because the clearance process takes longer. This can help importers save money. With the right planning, CFS clearance can be the perfect option if you are importing a large number of parcels that don’t need to be cleared immediately. Just take note that CFS clearance usually takes 24 hours but some can go as long 4 days. Clearance can also depend on the airport and if it’s peak times or the holidays.

CFS from CrimsonLogic

Understanding E-Commerce Container Freight Services can be complicated. Not to worry! CrimsonLogic CFS includes customs processing (eAWB, ACAS filing and ACE Air eManifest), CFS Section 321 clearance, and logistics arrangements for freight forwarders, importers and other trade participants.

While CFS clearance may take bit longer, you have more options thanks to the access to more airports and rates. CFS from CrimsonLogic gives filers more airport options (LAX, JFK, SFO and MIA) than any Express Consignment Carrier Facility (ECCF.) Because the clearance is not express, you won’t have to pay the fee per HBL.

Planning for the movement of goods more efficiently and not having to pay the $1 fee per HBL for Section 321 processing can help importers save a huge amount of time and money. With the rising cost of costs of air freight and logistics and competition driving the need for efficiency and reliability, CFS from CrimsonLogic can be a game-changing solution for many companies.

Learn more by visiting our US E-Commerce page or contact us today!understanding e-commerce container freight services