More transparency coming on rail charges for ag sector : com

More transparency coming on rail charges for ag sector


STB issues final rule on rail demurrage charges to improve data on justification of costs imposed to rail customers.
The Surface Transportation Board announced the adoption of a final rule in demurrage billing requirements, a move welcomed by the agriculture sector which has been calling for changes in how the rail industry accesses charges. The final rule establishes certain minimum information requirements for demurrage bills from Class I railroads, including among other things, billing cycle, shipment, car placement and credit and debit information. 
Demurrage is a penalty charge assessed by railroads for the detention of cars by shippers or receivers of freight beyond a specified free time. Demurrage charges are an incentive to load/unload cars promptly and are also a tool used to prevent over-accumulation of railcars in yards and industrial sidings. The Agricultural Retailers Association says that excessive freight rates and demurrage charges impose higher price on retailers, farmers and consumers.

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