STB Demurrage Regulation Update

Announcement Number: CN2014-20
Categories: All Customer News
Posted Date: June 25, 2014

To Our Customers,

The Surface Transportation Board (STB) issued a decision on April 11, 2014, establishing new demurrage regulations. This decision is available for review on the STB website. Under the new regulations, a person receiving rail cars from a carrier for loading or unloading who detains the cars beyond the “free time” provided in the carrier’s tariff may be responsible for paying demurrage. 49 C.F.R. § 1333.3.

Many customers receiving rail cars at loading points are the shippers of record. In addition, many customers receiving rail cars at destination are the consignees of record. For these customers, the new demurrage regulations will not change the current demurrage processes of Union Pacific.

The regulations will impact two types of shipments:

1. Loaded by Third Party at Origin: In cases where Union Pacific shipments are loaded by a third party at origin on behalf of the shipper, we have historically calculated and billed any demurrage to the shipper of record. Effective with demurrage accruing after July 31, 2014, Union Pacific will be calculating and issuing any demurrage billing to the “loading” party of record, when one is listed on the waybill.

2. Care of Party at Destination: In cases where Union Pacific shipments are unloaded by a “care of” party at destination, we have historically calculated and billed any demurrage to the consignee of record on the shipment. Effective with demurrage accruing after July 31, 2014, Union Pacific will be calculating and issuing any demurrage billing to the “care of” party of record, when one is listed on the waybill.

Should the shipper of record or the consignee of record prefer to be responsible for demurrage, they need only notify Union Pacific in writing via letter or email.

Union Pacific Railroad Company
Attn: Carload Accessorial Team
1400 Douglas St., STOP 1410
Omaha, NE 68179
upacc@up.com

Note: Notices received by Union Pacific will become effective for demurrage accruing in the following month.

The new regulations also require Union Pacific to provide actual notice of its demurrage tariff to all parties receiving rail cars from us for loading or unloading. Union Pacific’s demurrage rules are provided in Tariff UP 6004, specifically in Items 9600 through 9890. This tariff can be found here.

If you have any questions regarding the new demurrage regulations, please contact your Union Pacific sales representative or call our National Customer Service Center at 1-800-243-0890, Option 1.