QUICK GUIDE TO MANAGING DEMURRAGE AND PRIVATE STORAGE

Transcription

1 QUICK GUIDE TO MANAGING DEMURRAGE AND PRIVATE STORAGE

2 TABLE OF CONTENTS

3 INTRODUCTION 4 DEMURRAGE 6 PRIVATE CAR STORAGE 10 ENHANCED DEMURRAGE MODULE 12 FREQUENTLY ASKED QUESTIONS 16 MANAGING DEMURRAGE & PRIVATE CAR STORAGE CHARGES 20 HOW TO DISPUTE A BILL 22 3 KEY TERMS 24 NOTE: ALL RATES ARE EFFECTIVE AS OF JULY 1, 2009

4 INTRODUCTION

5 THE EFFECTIVE MANAGEMENT OF RAILCARS is critical to the success of CSX and of our customers. The objective of this guide is to improve the handling of customer-related inquiries about demurrage and private car storage, so that we can help our customers grow their business and be successful together. Demurrage is a fee charged for the extended use of railroad-owned railcars. Private car storage is a fee charged for the extended holding of industry-owned or -controlled (private) railcars on CSX tracks. These fees are intended to ensure that cars are loaded, unloaded, and released quickly, so that they can be made available for the next shipment and track can remain fluid to handle traffic. Although demurrage and private car storage are conceptually similar, there are important distinctions between the two. Demurrage applies to railroad-controlled cars awaiting 5 loading or unloading, while private car storage applies to industry-controlled (private) railcars awaiting disposition on CSX tracks. However, both have the same effect of removing a railcar from service and/or creating congestion of rail traffic. The information below contains the relevant provisions of the two services, credit days granted by CSX, and tips to help the customer manage liability to these charges. Complete demurrage and private car storage provisions are contained in Tariff CSXT 8100, Section VIII. You can view or print a copy of Tariff CSXT 8100 at: customers.pricing_tariffs_8100 If you have additional questions about demurrage, storage, or any aspect of our rail service, please visit or contact us at Rail_Logistic_Svcs@csx.com.

6 DEMURRAGE

7 DEMURRAGE is calculated on a debit and credit system and it is billed monthly. Each car delivered to a customer is credited one day for loading and two days for unloading. The days that a car spends waiting to be placed at a customer s facility or sitting at a customer s siding are debited. At the end of each month, cars, credit days and demurrage days are totaled for all inbound railroad-owned cars handled at a specific customer s location. All outbound railroad-owned cars are handled in the same way (note: inbound and outbound cars are handled in separate accounts). Total demurrage days minus total credits = chargeable days. If total credit days exceed total demurrage days, no charges accrue (note: demurrage credits do not carry over to the next month). Chargeable days, multiplied by the applicable rate, determines the chargeable demurrage amount. For example, a customer during the month of July handled 35 cars that earned 70 credits (assuming 2 credits per car) and totaled 85 demurrage days. Assuming the current demurrage charge is $90 per day, the customer will have to pay $1,350: 7 85 demurrage days - 70 credits = 15 chargeable days x $90 = $1,350. Demurrage days calculations are determined by the restrictions that a customer puts on CSX s ability to place cars at the customer s facility. If a customer wants to order cars in specifically by car initial and number or track capacity is insufficient to hold all arriving cars, then a customer is considered CLOSED GATE. A customer is considered OPEN GATE when all cars can be placed on arrival without regard to car initial and number or other placement instructions. Demurrage starts at 00:01 the next day CSX places a car or notifies the customer of constructive placement of a car. Demurrage stops when the customer releases a car to CSX. DEMURRAGE CREDIT (FREE) DAYS RATE REFRIGERATED 1 DAY CREDIT FOR LOADING 1 DAY CREDIT FOR UNLOADING (COVERED HOPPER UNIT TRAIN) 2 DAYS CREDIT FOR UNLOADING $ PER CAR PER DAY $ PER CAR PER DAY $ $ PER CAR PER DAY N/A $

8 APPROPRIATE CARS TO RELOAD ELECTRONICALLY: Appropriating cars for reload is a quick process that stops the demurrage clock on the unload portion of a car cycle and begins the clock for calculating the loading cycle time (2 days unload and 1 day load allowed per the CSXT 8100). This ensures you are credited with the appropriate amount of time to accomplish the reload. Customers may appropriate a car if they have an open car order for the same type of car and the car is non-hazmat, rail operated (not private) and not assigned to a shipper pool. Please request to appropriate a car to reload before actually reloading the car, to ensure it meets these conditions. UNLOADING RAILROAD-OWNED CAR (OPEN GATE) 8 DAY TIME EVENTS 1 15:45 CSX PLACES LOADED CAR AT CUSTOMER S SIDING (ACTUAL PLACEMENT) - TENDER 2 00:01 DEMURRAGE CYCLE STARTS 4 14:25 CUSTOMER NOTIFIES CSX THAT CAR IS EMPTY - RELEASE 4 14:25 DEMURRAGE CYCLE ENDS 5 15:25 CSX PULLS EMPTY CAR 3-Day Demurrage Cycle LOADING RAILROAD-OWNED CAR (OPEN GATE) DAY TIME EVENTS 1 15:15 CUSTOMER ORDERS EMPTY CAR 2 6:00 CSX PLACES EMPTY CAR AT CUSTOMER SIDING (ACTUAL PLACEMENT) - TENDER 3 00:01 DEMURRAGE CYCLE STARTS 6 14:35 CUSTOMER FURNISHES CSX WITH FORWARDING INSTRUCTIONS - RELEASE 6 14:35 DEMURRAGE CYCLE ENDS 7 13:15 CSX PULLS LOADED CAR 4-Day Demurrage Cycle

9 UNLOADING RAILROAD-OWNED CAR (CLOSED GATE) DAY TIME EVENTS 1 15:15 LOADED CAR ARRIVES AT RECEIVING YARD 2 17:00 CSX NOTIFIES CUSTOMER (CONSTRUCTIVE PLACEMENT NOTICE) - TENDER 3 00:01 DEMURRAGE CYCLE STARTS 4 7:00 CUSTOMER REQUESTS PLACEMENT OF LOADED CAR 6 11:27 LOADED CAR IS PLACED AT CUSTOMER SIDING 7 10:45 CUSTOMER NOTIFIES CSX CAR IS EMPTY - RELEASE 7 10:45 DEMURRAGE CYCLE ENDS 8 10:00 CSX PULLS EMPTY CAR 3-Day Demurrage Cycle *Shipper-assigned pools contain cars assigned exclusively for the use of one shipper. Cars made empty at destination are automatically routed back to the same shipper. 9 LOADING SHIPPER-ASSIGNED CAR POOLS DAY TIME EVENTS 1 15:45 EMPTY CAR ARRIVES AT RECEIVING YARD 1 16:45 CSX NOTIFIES CUSTOMER (ARRIVAL NOTICE) - TENDER 2 00:01 DEMURRAGE CYCLE STARTS 5 10:00 CUSTOMER REQUESTS PLACEMENT OF EMPTY CAR 6 9:00 EMPTY CAR IS PLACED AT CUSTOMER SIDING 9 7:00 CUSTOMER FURNISHES CSX WITH FORWARDING INSTRUCTIONS - RELEASE 9 7:00 DEMURRAGE CYCLE ENDS 10 13:00 CSX PULLS LOADED CAR 7-Day Demurrage Cycle *An automatic deduction is made for days that accrue between the request of placement and the actual placement date.

10 PRIVATE CAR STORAGE

11 PRIVATE CAR STORAGE applies on industry-controlled (private) empty cars that are not promptly positioned for the next load and industry-controlled loaded cars that are not positioned for unloading within the allotted time. Currently, CSX allows 5 credit days for empty cars and 2 credit days for loaded cars. Cars will be placed in storage 00:01 after notification. Private car storage billing is similar to demurrage billing. At the end of each month, cars, credit days and private car storage days are totaled for all inbound railroad-owned cars handled at a specific customer s location. All outbound railroad-owned cars are handled in the same way (note: inbound and outbound cars are handled in separate accounts). Total private car storage days minus total credits = chargeable days. If total credit days exceed total storage days no charges accrue (note: storage credits do not carry over to the next month.) 11 Chargeable days, multiplied by the applicable rate, determines the chargeable private car storage amount. PRIVATE CAR STORAGE CREDIT (FREE) DAYS 5 DAYS FOR EMPTY RAILCARS 2 DAYS FOR LOADED RAILCARS RATE $ PER CAR PER DAY $ PER CAR PER DAY

12 ENHANCED DEMURRAGE MODULE

13 View Demurrage Charges Summary ABC Company, 123 NW Blvd., Jacksonville, Fl In this section, you can view a summary of demurrage charges by company and location. The summary charges are a snapshot created at midnight from the previous day s data. These totals are specific to the demurrage charges by location you are signed up for and may not reflect the entire Company totals. You are able to view the up-to-date individual information by clicking on Account Location MTD Information. To see more accounts or to have accounts deleted from this page, call ShipCSX ( ) option 2, option 1.

14 Demurrage Charges Benefits By using the ShipCSX Demurrage Charges module, you can: View current monthly demurrage charges for closed cycle cars View number of cars and details on constructively placed, ordered, placed, and released for the month by location View account details of demurrage charges for last four months Request a plant switch for cars accruing demurrage charges Subscribe to receive a daily demurrage charges summary Analyze demurrage information by account or by specific railcars

15 Demurrage Charges - Daily Summary ABC Company, 123 NW Blvd., Jacksonville, Fl Daily summaries give you a detailed view of notified or placed cars.

16 FREQUENTLY ASKED QUESTIONS

17 What is demurrage? Demurrage is a fee charged to the customer for the extended use of railroad-owned railcars beyond the credit (free) days granted by CSX. What is private car storage? Private car storage is a fee charged to the customer for the extended holding of industry-owned or -controlled (private) railcars on CSX tracks. Why does CSX charge for demurrage and private car storage? Demurrage and private car storage take railcars and track temporarily out of service. The purpose of these charges is to provide customers with an incentive to promptly load or unload CSX railcars and to quickly release or move private railcars from CSX track. 17 How many credit (free) days do I have for demurrage and private car storage? For demurrage, customers receive 1 day of credit for loading a railcar and 2 days of credit for unloading a railcar. For private car storage, customers receive 5 days for empty cars and 2 days for loaded cars. Unloading unit trains of covered hoppers is only 1 day of credit effective July 1, Do credit days carry over to the next month? No, credit days do not carry over to the next month.

18 What is the per day charge for demurrage and private car storage? The per day charge for demurrage is $90.00 per car, $ per car for refrigerated cars, and the per day charge for private car storage is $40.00 per car. What is the difference between actual and constructive placement? Actual placement is when CSX places a car in a position accessible for loading or unloading. Constructive placement is when CSX, due to any condition attributable to the consignor or consignee, delivers the cars but cannot place them in a position to be immediately loaded or unloaded. 18 When does demurrage begin? Demurrage starts at 00:01 the next day after CSX places a car or notifies a customer of constructive placement of a car. When does demurrage end? Demurrage stops when a railcar is ordered in or when a car is released. When does private car storage begin? Private car storage starts at 00:01 after notification that a car is available for placement.

19 When does private car storage end? Private car storage ends when a private railcar is ordered into the customer's facility. Are demurrage and private car storage charges applicable on holidays? No, these charges are not applicable on holidays. Please refer to Tariff CSXT 8100 for official holidays. Am I liable for demurrage or private car storage when CSX delays or misses placement? No, the customer is not responsible for demurrage or private car storage when CSX is responsible for delays or missed placement. 19 Who is my demurrage or private car storage account representative? The name and phone number of your Customer Account Associate appears at the top left of the Incidental bill. Can CSX help me manage demurrage and/or private car storage? Yes, ShipCSX.com is available 24 hours-a-day to view your current month s potential demurrage charges. You can also use ShipCSX.com tools to plan, ship, trace and pay.

20 MANAGING DEMURRAGE & PRIVATE CAR STORAGE CHARGES

21 Understand CSX s demurrage and private car storage rules published in CSXT 8100, section VIIIC Use ShipCSX.com tools Understand CSXT s demurrage and private car storage rules published in CSXT Maintain 8100, close section communication VIIIC between shippers and receivers to avoid having too many cars in the pipeline Use ShipCSX.com tools Closely monitor: Maintain - The movement close communication of cars from origin between to destination shippers and receivers to avoid having too many - Switching cars in the activities pipeline Closely - When monitor: empty cars are placed at the plant for loading - The When movement a bill of lading of cars is from sent in origin on loaded to destination cars - Switching When loaded activities cars are actually pulled from the plant - When When empty loaded cars cars are are placed Constructively at the plant Placed for in loading serving railyard - When When a loaded bill of cars lading are is actually sent in on spotted loaded at cars the plant - When When loaded empty railroad-owned cars are actually cars pulled are from released the plant from the plant - When loaded cars are Constructively Placed in serving railyard Order Constructively Placed cars as soon as possible - When loaded cars are actually spotted at the plant - Release When empty railroad-owned owned cars from cars your are released siding from the plant the day they are made empty/loaded Order Constructively Placed cars as soon as possible Unload railroad-owned equipment before privately-owned Release equipment railroad (when owned cars are cars on from your your siding) siding the day they are made, empty/loaded Communicate to Customer Service any problems Unload associated railroad with movement owned equipment of cars into before or privately out of your owned plant equipment (when cars are on your siding) Use the ShipCSX Shipment Problem Resolution tool, Communicate under Trace to your and customer Resources service tab. rep any problems associated with movement or of cars into or out of your plant Call ShipCSX. You will be prompted to enter your Make sure that shipper assigned car pools are sized properly to the current ShipCSX User ID and PIN to access. Options 5-6 traffic volumes Make sure that shipper-assigned car pools are sized Invest in loading/unloading equipment and facilities that can adequately handle properly to the current traffic volumes the volume of railcars you ship/receive Invest in loading/unloading equipment and facilities that If you anticipate extended private car storage, request a short or long-term can adequately handle the volume of railcars you ship/receive track lease If you anticipate extended private car storage, request a short- or long-term track lease 21

22 HOW TO DISPUTE A BILL

23 Understand A FORMAL CSXT s DISPUTE demurrage and must private be submitted car storage within rules 30 published days from in the time the bill CSXT is rendered. 8100, section ShipCSX VIIICprovides capabilities to view, pay and dispute bills online. ShipCSX can be accessed at To file a dispute online the customer must Use log into ShipCSX.com using tools his/her own password and ID: Maintain close communication between shippers and receivers to avoid having 1. Select the Pay Tab. too many cars in the pipeline 2. Select Account Invoices. 3. Closely Select invoice(s) monitor: for dispute by checking boxes Select The movement Dispute in of the cars Actions from field. origin to destination 5. - Use Switching the drop-down activities list to choose one of six options for recording disputes Provide When empty detailed cars comments are placed including: at the plant car initial for loading and numbers, place dates, release - dates, When service a bill of dates, lading contract is sent or in on tariff loaded and rate carsdifferences Submit When dispute(s). loaded cars are actually pulled from the plant - When loaded cars are Constructively Placed in serving railyard Written - When disputes loaded can cars be submitted are actually to spotted the following at the address: plant - When empty railroad owned cars are released from the plant CSX Supplemental Order Constructively Revenue Placed J607 cars as soon as possible 6737 Southpoint Dr. S. Release railroad owned cars from your siding the day they are made, Jacksonville, FL empty/loaded 23 The customer Unload railroad must be owned specific equipment when identifying before reasons privately for the owned dispute, equipment including (when car initial cars and numbers, are on your place siding) dates, release dates, service dates, contract or tariff and rate differences. A Customer Account Associate will investigate the dispute and respond in writing to the Communicate to your customer service rep any problems associated with customer if the claim is allowed or declined. The customer should issue partial payment on movement of cars into or out of your plant the portion of the bill where no exception is requested. Make sure that shipper assigned car pools are sized properly to the current traffic The name volumes and phone number of the Customer Account Associate appears at the top left of the Incidental Bill. Invest in loading/unloading equipment and facilities that can adequately handle the volume of railcars you ship/receive If you anticipate extended private car storage, request a short or long-term track lease

24 KEY TERMS

25 ACTUAL PLACEMENT: Physically placing a car for loading or unloading at a place generally designated or used by the shipper or receiver. CONSIGNEE: The party to whom a shipment is consigned or the party entitled to receive the shipment. CONSIGNOR: The party in whose name a car(s) is ordered; or the party who furnishes forwarding instructions. CSX CREDIT TERM: Full payment of all linehaul and supplemental charges must be received by CSX from credit customers within fifteen (15) days of the date of the bill. CONSTRUCTIVE PLACEMENT: When a car cannot be placed for loading or unloading and remains in our control, it is considered as being under constructive placement and subject to demurrage rules and charges, the same as if it were actually placed at the designated point. 25 CREDIT: A non-chargeable demurrage day. A Credit is earned when a car is released by the customer and is used to offset chargeable demurrage days. DEMURRAGE DAY: A twenty-four (24) hour period commencing 00:01 after tender. DISPOSITION: Information that allows the railroad to either tender or release the car for the customer s account.

26 FORWARDING INSTRUCTIONS: Shipping instructions provided at the point of loading that contain all of the necessary information to transport the shipment to its final destination. LOADING: The complete or partial loading of a car in conformity with loading and clearance rules and the furnishing of forwarding instructions. LOADED CAR: A car that is completely or partially loaded. 26 NOTIFICATION: When required, written or verbal notification given to the parties entitled to receive notice that the car is available for loading, unloading, or otherwise affected by demurrage rules. PRIVATE CAR: An industry-controlled (private) railcar. RELOADING: When a car is held for loading after being released as an empty. TENDER: The notification of actual or constructive placement of an empty or loaded car. TIME: Local time is applicable and is expressed on the basis of the 24-hour clock. Example: 12:01 AM is expressed as 00:01 hours. UNLOADING: The complete unloading of a car, and notification from the consignee that the car is empty and available to the railroad.

27 Can t find what you re looking for? Go to the 8100 Tariff Web page for more information.

28 500 Water Street Jacksonville, FL