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 destination Order car to be sent to siding Order car by number Rail line delivers to Consignee Must unload within established time If 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 Rates Encourage shipments in more economical terms Processing-in-Transit Rates Allows a shipment which stops for processing to be counted as 1 single trip Sold-in-Route No-Bills