I wonder if there is no demurrage charges associated with center beam cars at the moment (maybe a surplus of them)? Reason I ask is there have been 2 empty center beam cars on the siding at Amerhart in Williamsburg for almost a month now. I would assume Amerhart released them long ago and GLC has not come to get them as they don’t want to make a trip up here unless they have loads to bring up to make it work their time/money? They don’t get stuck with a daily charge for not returning the cars to the owner?
Also, I wonder if Amerhart opening their Grand Rapids location and installing a rail siding last summer/fall has taken the rail business from the Williamsburg location? Last year there were close to, if not record numbers of carloads to the Williamsburg location. Then after the Grand Rapids location opens and gets the siding on the GDLK, the car numbers plummeted. And nothing at all for almost a month now. Even last January they received at leave 6 cars (0 so far this year). I see Amerhart trucks (not local job delivery trucks, but tractor/trailers) coming up/down US-31 in the TC area. I wonder if they are trucking everything from Grand Rapids now?
Nothing at Beacon this year either- last 2 cars were early December….
GLC and demurrage
GLC and demurrage
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Re: GLC and demurrage
Amerhart in Grand Rapids received their first two cars yesterday.
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Re: GLC and demurrage
There are 2 things involved - demmurrage and car hire.
Demmurrage is charged by the railroad to shipper / receiver for not unloading the car is 48 hours or loading the car in 24 hours (typically).
Car hire is charged by owner of the car to the railroad the car is physically on. It is charged 24/7 - no free hours. Some have mileage charges as well.
If Amerhart released the car with 48 hours of delivery, there will not be a demmurrage charge. GLC mostly likely is paying car hire on the car.
Centerbeams are going for about $0.50 - 60 / hour currently. Years ago - late 90's -I remember the rate was as high as $3.75
Demmurrage is charged by the railroad to shipper / receiver for not unloading the car is 48 hours or loading the car in 24 hours (typically).
Car hire is charged by owner of the car to the railroad the car is physically on. It is charged 24/7 - no free hours. Some have mileage charges as well.
If Amerhart released the car with 48 hours of delivery, there will not be a demmurrage charge. GLC mostly likely is paying car hire on the car.
Centerbeams are going for about $0.50 - 60 / hour currently. Years ago - late 90's -I remember the rate was as high as $3.75
Re: GLC and demurrage
Thanks for the explanation! So using .50/hr, that's about $300 so far billed to the GLC.Raildudes dad wrote:There are 2 things involved - demmurrage and car hire.
Demmurrage is charged by the railroad to shipper / receiver for not unloading the car is 48 hours or loading the car in 24 hours (typically).
Car hire is charged by owner of the car to the railroad the car is physically on. It is charged 24/7 - no free hours. Some have mileage charges as well.
If Amerhart released the car with 48 hours of delivery, there will not be a demmurrage charge. GLC mostly likely is paying car hire on the car.
Centerbeams are going for about $0.50 - 60 / hour currently. Years ago - late 90's -I remember the rate was as high as $3.75
CEO of the Waving Institute- teaching great wave forms.
Re: GLC and demurrage
It might be cheaper for GLC to leave the cars there than to send a train to fetch them. I believe a crew is paid in the $150 per person per day range. I don't know what it costs to operate an engine
TC Man wrote:Thanks for the explanation! So using .50/hr, that's about $300 so far billed to the GLC.Raildudes dad wrote:There are 2 things involved - demmurrage and car hire.
Demmurrage is charged by the railroad to shipper / receiver for not unloading the car is 48 hours or loading the car in 24 hours (typically).
Car hire is charged by owner of the car to the railroad the car is physically on. It is charged 24/7 - no free hours. Some have mileage charges as well.
If Amerhart released the car with 48 hours of delivery, there will not be a demmurrage charge. GLC mostly likely is paying car hire on the car.
Centerbeams are going for about $0.50 - 60 / hour currently. Years ago - late 90's -I remember the rate was as high as $3.75
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