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Rail linehaul

Rail pricing can be provided through:

  • contract,
  • tariff,
  • quote/price authority,
  • published rate,
  • interline arrangement.

Do not assume a universal per-mile formula.

Commodity, car type, lane, volume and competitive access matter.

Fuel surcharge

Many railroad prices apply a fuel surcharge under the carrier's published/contract program.

Check:

  • whether included,
  • index/formula,
  • effective period.

Equipment

Possible equipment cost:

  • private car lease,
  • mileage/car hire arrangements,
  • railroad equipment charge,
  • specialty car,
  • heavy-duty flatcar,
  • idler car.

Switching

There may be:

  • origin switching,
  • destination switching,
  • intermediate switching,
  • short-line charges,
  • intra-terminal switching.

Whether included depends on the price/routing.

Demurrage

STB defines demurrage as a charge when railcars are detained beyond specified free time for loading/unloading.

It serves:

  1. to compensate for detained equipment, and
  2. to encourage efficient use/distribution of railcars.

Practical questions:

  • When did free time start?
  • How much free time applies?
  • Was car actually/constructively placed?
  • When was it released?
  • Which tariff/contract governs?

Private cars and storage

Private railcars can still create storage/demurrage or other charges depending on carrier rules and location.

Do not assume owning the car means unlimited free track space.

Accessorials

STB lists examples including:

  • diverting shipment in transit,
  • ordering a car and releasing empty,
  • weighing a car,
  • tendering another railroad's car without linehaul,
  • special train service,
  • additional switching,
  • incomplete/incorrect shipping instructions.

Carrier tariffs define actual charges.

Dimensional/high-wide charges

May include:

  • clearance study,
  • special handling,
  • special train,
  • idlers,
  • engineering,
  • route-specific service.

Transload

Adds:

  • truck dray,
  • transfer labor/equipment,
  • storage,
  • handling,
  • rail linehaul.

But it may still reduce total long-haul cost.

Damage/claims are not accessorials

Cargo claims are a separate commercial/legal process.

Do not net an operational charge against a claim unless agreed.

How to compare rail quotes

Ask:

Rate What lane/commodity/equipment does it cover?

Fuel Included or separate?

Equipment Who supplies car?

Switching Included?

Demurrage Tariff/free time?

Interline Is entire route priced?

Transload/dray Included or separate?

Special handling Included?

Billing transparency

STB adopted demurrage-billing requirements after shippers raised concerns that invoices lacked enough information to verify charges.

If an invoice is confusing, compare it with:

  • placement/release events,
  • applicable tariff/contract,
  • car number,
  • dates,
  • free time.

Bottom line

Rail cost is:

linehaul + fuel + equipment + switching + car time + exceptions

Make the assumptions visible.

Related:

Comparing rail quotes?

Send the quotes and the lane details and we will help you line up what each one includes, so the comparison is between the same moves.

Request a Freight Quote

Official reference

  • STB Demurrage & Accessorial Charges: https://www.stb.gov/reports-data/demurrage-accessorial-charges/