TOWARD AN EFFECTIVE DEMURRAGE SYSTEM

The report summarizes the results of research conducted into the components of the rail car load-to-load cycle and rail car terminal activity, car handling practices and policies of rail customers, and concepts of rail car value. The report further evaluates the effectiveness of the current railroad demurrage tariff in terms of the goal of efficient equipment utilization. It proposes replacement tariff components which deal with the following areas: demurrage application, non-chargeable time, average agreement, claims, and charges.