Attacking Demurrage Charges

According to IWLA’s President and CEO, Joel Holland, the first goal of the IWLA Rail Council is to eliminate warehousing charges to third party logistics (3PL) suppliers when freight cars aren’t unloaded in a timely manner. “The aim is to enter into ‘actual placement’ agreements with each of the Class I rail carriers,” he says.

As explained by IWLA, such agreements would include railroads not charging demurrage for events that occur outside a warehouse company’s control. From the 3PL’s side, there would be agreement to unload a specified number of rail cars within a specific time.

In order to attempt to resolve demurrage issues, IWLA met with the U.S. Surface Transportation Boards, which directed the association to meet formally with all Class I railroads in order to reach agreement with them.