Demurrage and Storage Policy Changes Effective April 1, 2016
Announcement Number: CN2016-1
Categories: General Announcements
Posted Date: January 4, 2016
To Our Customers,
In an effort to improve network fluidity, bolster capacity and improve equipment utilization, Union Pacific Railroad will be modifying its General Demurrage and Private Empty Car Storage Rules & Charges Policy, effective April 1, 2016.
Union Pacific is focused on reducing excessive rail car dwell on our tracks and in our terminals. While volume is variable from year to year, rail cars holding in our yards is not. This new approach is designed to address this issue by differentiating hold charges between yard and industry tracks. Fluid rail yards support Union Pacific's mission to deliver safe and reliable service to all of our customers.
Under the new plan, debits will be issued based on the consumption of both railroad controlled equipment and yard capacity. Debits issued for cars on spot will not change from the current program. To this effect, railroad controlled cars held at industry will continue to be billed a debit of $100 per day, refrigerated cars at a debit of $200 per day, while private cars at industry will remain non-chargeable.
The changes apply to cars that are held on Union Pacific yard tracks and are as follows:
- Non-hazardous railroad controlled cars will increase by $100 per day, bringing the daily debit to $200 per day.
- Refrigerated cars will increase by $100 per day, bringing the daily debit to $300 per day.
- Private loads will continue to have debits accrue at $100 per day. Given their private ownership, these cars are only charged for consuming yard capacity.
- Private Empty Car Storage (PECS) rates will increase from $70 per day to $100 per day.
- Hazardous car debits will remain at $250 per day.
- Capacity credits will be issued at the new yard debit rate in consideration of service days or failed service events.
Additional information on your estimated impact will be made available to your Union Pacific representative. Please contact your representative with questions and to discuss throughput improvement ideas so that any changes can be implemented in advance of the new policy.
We value your business and want to provide the best service product possible. Please contact your Union Pacific representative with any questions.