Edit post

Edit your reply below.

Post Body
Enter your post below.
Sir, I you have per diem backwards. Car owners receive payments for each day a car is not on their own line. Fifty years ago, per diem was a daily charge only for each 24 hours. Today it is based in both time and mileage with fractions of a day. I'm not sure what the daily segments are, either 8 or 12 hours, methinks. Demurrage is a charge to customers for not expeditiously utilizing freight cars. It should not be confused with per diem and was never intended to be an offset. There are three basic types of demurrage, average agreement, straight plan and special. I would launch into a more detailed description if someone wants to hear it, but it's really not a sexy subject. The decision(s) to store cars is based on the commodity for which they are designed. Much railroad business is seasonal. For instance, grain is shippped at certain times of the year. To have enough cars to meet demand, a railroad may own, say, 3,000 covered hoppers. In the off season, there is not much for these cars to do, so they are stored waiting for when they are needed. Sometimes cars are stored for pending business opportunities that never materialize. When that's the case, a decision is made whether or not to scrap some or all of them. Cars that are to be cut up are moved to the scrap yard after a contact is signed detailing what will be done, such as return of certain parts. These may be brake parts such as reservoirs, valves, retainers, trucks, etc. These can be reconditioned and used on other cars. There are many opportunities for abuse in this practice. If a close eye is not kept on the contractor, it is easy to lose count of all the parts that are supposed to be returned. But then this is another long saga and usually requires yet another night or two away from home. Regards and have a safe day. gdc
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag