I know that the railroads pay a heavy penalty if the UPS and J. B. Hunt trains (Z trains) are late. They pay a lot more and expect their trains to arrive on time, but what happens, as it is now that circumstances beyon thier control has caused severe problems with flooding? Do the railroads still have to pay even though they are are trying their best to get the tains to their destiantions?
Caldreamer
No. They can declare "force majeure" which gets them out of all their commitments.
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
oltmanndThey can declare "force majeure" which gets them out of all their commitments.
Yes, every contract I ever put together at the ICG had a "Force Majeure" provision that included phrases such as: "Act of God", "Act of Government", "Insurection", "Riot", etc. This was added by our lawyers. It was standard.
If a "Major Force" prevents you from honoring a contract there's nothing you can do. If you just can't go it's beyond your control.
Having a crew available is one thing. Holding back flood waters is something else.
Right now with this storm that hammered Nebraska and Wyoming it's added 1 day for us to get to SLC why we are having to go either via Colorado and Kansas or the Northern route via Montana to 15 to get there. Our customers are aware of it are accepting we are doing what we can to keep them serviced and are paying for the extra miles. We can finally start running the normal route across I-80 this week however fuel supplies may be an issue in the flooded area so our 1 tank trucks are not going that way.
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