Western Railroad Discussion > Demurrage and inaccessible cars

The story below on the SMART / NWP work closure brings to mind a question: If SMART has the line blocked for work, and if a car is ready to be released - but cannot be released because of the closure - who pays the demurrage charges? Seems as if the shipper should be released from the obligation as the car is ready to move. NWP doesn't run the circus and can't get to the car? Would SMART pay that charge? Seems like they should.

Thoughts?

John Gezelius
Tustin, CA

If the shipper releases the car within the free time permitted in the demurrage tariff, it doesn't matter whether the railroad picks it up or not, the shipper has no liability for demurrage.

john1082 Wrote:
-------------------------------------------------------
> The story below on the SMART / NWP work closure
> brings to mind a question: If SMART has the line
> blocked for work, and if a car is ready to be
> released - but cannot be released because of the
> closure - who pays the demurrage charges? Seems
> as if the shipper should be released from the
> obligation as the car is ready to move. NWP
> doesn't run the circus and can't get to the car?
> Would SMART pay that charge? Seems like they
> should.
>
> Thoughts?

Applies only to RR owned equipment. Private cars are exempt from demmurage rules. If its a RR owned car, the NWP is paying car hire on it the minute it hits its rails

WAF Wrote:
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> Applies only to RR owned equipment. Private cars
> are exempt from demmurage rules. If its a RR owned
> car, the NWP is paying car hire on it the minute
> it hits its rails


Youre thinking of per diem. Consignee payment to the RR is demmurage. RR payment to owner RR for car on their RR is per diem.

RR own cars..per diem and demmurage payment rules apply. pvt owned cars are billed on a mileage basis.
That is why u see chemical tank cars and pvtly owned covered hoppers sitting around and used for storage silos until
the product is needed.

Generally, private cars are only exempt from demurrage rules if they are on a private track. If the shipper/receiver loads/unloads a private car on a public, or "team" track, they are still subject to demurrage.

Car hire and demurrage are entirely separate, not related. Whether NWP pays car hire "the minute it hits its rails" depends on whether they have car hire relief from the connecting class I carrier under the car hire rules. For example, an empty car in a "pool" may not be subject to car hire until it is loaded. Also, many shortlines get five days car hire free through a transfer of liability back to the connecting carrier under Rule 15.



WAF Wrote:
-------------------------------------------------------
> Applies only to RR owned equipment. Private cars
> are exempt from demmurage rules. If its a RR owned
> car, the NWP is paying car hire on it the minute
> it hits its rails



Edited 1 time(s). Last edit at 08/01/14 06:00 by eee.

Here is one.

You have a car in your train to spot and the way bill shows its a "Order Notify" What do you have to do?

Hey V. You can't answer.


Nudge

Wow, I have not seen an "Order - Notify" shipment in decades. I doubt that most railroads even offer the option today, as it would involve a "person" as in a clerk actually having to handle documents (even electronic ones). Basically covers a shipment where the receiver hasn't paid for the contents at the time of shipment and the railroad has to notify the shipper BEFORE spotting the car at consignee so the shipper (owner of goods) can release the car - authorize RR to spot car at consignee's - theoretically assures the shipper gets paid for whats in the car.

Then we also have "Section 7" shipments - but that's for another day.

I am not a lawyer, but I used to be a vacation relief agent for a railroad.

Notify the office that handles receiving payments and have them bill the customer for the freight before the car is spotted?

Posted from Android

spnudge Wrote:
-------------------------------------------------------
> Here is one.
>
> You have a car in your train to spot and the way
> bill shows its a "Order Notify" What do you have
> to do?
>

Nobody on a crew I worked with knew the answer. They spotted the car. The customer unloaded it. BN had an awful time getting paid. The crew didn't do any time but they all received a lot of Special High Intensity Training.

TAW



> Hey V. You can't answer.
>
>
> Nudge

The U.P. Yard Office in Los Angeles had a short list of consignees that maintained a bond covering Order Notify cars.  Order Notify cars for anyone on the list could be spotted immediately.  Order Notify cars for anyone not on the list were held until released by the Cashier.  Sometimes the waybill was written as Shippers Order, the same thing as Order Notify.

From what I remember of long ago, the shipper would sell the contents of the car to a bank.  After the consignee bought the contents of the car from the bank, the bank would notify the Cashier, and the car would be released to the consignee.

The Order Notify involved only the contents of the car.

Eugene Crowner