|  Clifton Linton

4 Tips to Cut Demurrage Bills

Demurrage charges are the equivalent to death and taxes when it comes to rail shipments, as they are painful and unavoidable. There are ways to reduce the charges, however.

Liquefied petroleum gas (LPG) shippers charge demurrage to consignees when freight cars are delayed in unloading. A railroad will charge the fee if it has to hold a car in its yards while waiting for the car to be accepted.

As most LPG is shipped in private rail cars, a railroad doesn’t charge demurrage on the cars, only for car storage.

As one railroad source confided to Energy Transport Insider, the common and somewhat unhelpful demurrage remedy offered from the Class 1 railroads is for consignees to better...

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