CHAPTER 8 RAILROAD OPERATIONS The Average Freight Train

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