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To: BNSF Coal Customers

BNSF Demurrage Policy Changes Effective February 1, 2017 – 90 Day Transition Period

As part of our ongoing efforts to improve equipment utilization and network efficiency, BNSF is revising current demurrage policy related to coal unit train cars. Effective February 1, demurrage will become applicable to trains that are held in Constructive Placement (CP) status outside of the unloading facility (as detailed in items 110, 120 and 125 of the BNSF 6041-B coal tariff) and will be visible in the BNSF Customer Dwell Management Tool (CDMT).

CP may occur at any point in transit when a unit train(s) is held due to any cause attributable to the shipper or its agent, or the shipper or its agent is unable to accept a unit train(s) for unloading upon arrival. In addition to driving efficiency improvements, billing for CP is consistent with current BNSF equipment policies governing all other commodity groups.

Highlighted below is a summary of the 2017 tariff rules that will apply to Constructive Placement:

  • Demurrage for Constructive Placement will be computed from the time of constructive placement status and will remain on demurrage until the train departs its hold location. Shipper will be assessed $600 per hour (or for any fraction of an hour).
  • Time accrued under Constructive Placement from the point when the Shipper (or its agent) notifies BNSF that Actual Placement has become possible and BNSF determines a Constructively Placed unit train is ready for movement to origin or destination shall not exceed 24 hours.

BNSF is providing a 90-day transition period for customers to adjust to these 2017 demurrage policy changes. Actual billing for CP time will not begin until May 1, 2017. With all CP charges visible in the CDMT beginning February 1, customers are encouraged to discuss any future exposure they might have with the demurrage team. This transition period also provides customers with the opportunity to modify unloading practices, if necessary.

Please refer to the following list of Frequently Asked Questions regarding these changes.

MN Coal Demurrage Policy Change - FAQs 2017-01-16.pdfMN Coal Demurrage Policy Change - FAQs 2017-01-16.pdf

If you have any additional questions, please contact your BNSF marketing representative about any exposure you might have to these tariff changes.

Your business is important to us. Thank you again for choosing BNSF Railway as your transportation provider.

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