CHAPTER 8

RAILROAD OPERATIONS

• The “Average” Freight Train !!! No

• Contract Rates

• Paperwork Path (EDI)

• Demurrage

• Two Primary Documents

Bill of Lading

• Contract of carriage between the shipper and the rail line

-Legal contract once signed by shipper

• Two Main Types-Open – Prepaid-Order – Consignee must pay shipper

Waybill

• Contract between railroads involved in movement of shipment

• Contains information to help keep track of the car and shipment

• Last road handling road-haul carrier responsible for collecting freight charges

• If handled by multiple carriers kept on central file

• Interchange: cars are moved from one track to another at a junction point

• Switching - Intra-plant- Intra-terminal- Inter-terminal

·Switching Charges / Interline Settlements

·Equal Access

Arriving at Destination

• Consignee is notified once it reaches its destinationOrder car to be sent to sidingOrder car by number

• Rail line delivers to Consignee Must unload within established timeIf not goes into demurrage

• Freight bill prepared

• Public Loading Facilities (Team, BIDS, etc.)

• Captive Shortline

• Class and Commodity Rates

• Incentive Rates

• Common Carrier

Tariffs

• Class Rates Used with one-of-a kind occasional shipments Move less than 1% of freight traffic

• Commodity Rates Rate for a particular commodity or item Specific from one point or area to another

• Ex Parte Charges Across the board increases due to inflation

Tariffs (continued)

• Incentive RatesEncourage shipments in more economical terms

• Processing-in-Transit RatesAllows a shipment which stops for processing to be counted as 1 single trip

• Sold-in-Route

• No-Bills