On December 1, 2019 the Norfolk Southern announced revisions to their NS 6004-D Demurrage and Storage tariff.  The changes that were to become effective April 1, 2020 involved the NS implementing a new tiered demurrage and storage structure to address cars held for seven (7) days or longer.  Chargeable per car per day rates for demurrage and storage would remain at the same rates for days one (1) to six (6) but will increase when cars are held seven (7) days or longer as referenced below.

 

The NS announced this morning that, “NS constantly evaluates business conditions and trends across our markets and across our network.  At the current time, we have elected to postpone the tiered demurrage and storage structure that was to become effective April 1, 2020. Instead, our current policy will remain in effect until such time as you receive a minimum of 30 days’ notification to our demurrage and storage tariff NS 6004-D”.  

Proposed changes to NS 6004-D Demurrage and Storage Tariff to become effective on April 1, 2020 is postponed until further notice.

 

Demurrage	Loading Credits	Unloading Credits	Per Car Daily Charge Tier 1 Days 1 – 6	Per Car Daily Charge Tier 2 Day 7+
Railroad Controlled Cars, Except Below	1	1	$ 150.00	$ 200.00
Covered Coil Cars, Centerbeam Flatcars, Refrigerated Cars, Heavy-Duty Flatcars	1	1	$ 250.00	$ 300.00
Cars Held	Origin/Destination Credits		Per Car Daily Charge Tier 1 Days 1 – 6	Per Car Daily Charge Tier 2 Day 7+
For Purposes Other than Loading or Unloading	0		$ 100.00	$ 150.00
Storage	Loading Credits	Unloading Credits	Per Car Daily Charge Tier 1 Days 1 – 6	Per Car Daily Charge Tier 2 Day 7+
Private Cars	0	0	$ 60.00	$ 120.00
Assigned Cars	1	0	$ 20.00	$  60.00

 

If your company is incurring significant rail demurrage charges, you have an opportunity to eliminate or reduce those costs. The complexities of shipping or receiving multiple products for multiple customers is difficult without an automated process. However, with the right tools and attention, you can achieve significant savings in a short period of time. Contact us if you would like to discuss how we may be able to help.