Trains.com

News Wire: Shippers complain to regulators about PSR-related charges

2842 views
26 replies
1 rating 2 rating 3 rating 4 rating 5 rating
  • Member since
    August 2005
  • From: At the Crossroads of the West
  • 11,013 posts
Posted by Deggesty on Saturday, May 18, 2019 1:53 PM

Shadow the Cats owner

We give 2 free hours from the Appointment time agreed to by our shipper and customer and our load planning team.  So if say a driver is early well then that driver is cooling their heels until their appontment time then the 2 hours of free time we give in all our contracts starts.  Beyond that is our standard detention time rates and fees.  If our driver is early more power to him however he can not get paid for detention time until his appointment time is 2 hours past.  

 

My husband was an OTR driver and for a few months had a kind of dedicated loop West Chicago to some DC for McDonalds in TN about 1 hour from Memphis then over to Memphis to Coors and back to West Chicago and start all over again.  He did 3 rounds of that a week normally with a grand total of 3600 miles for all his miles.  He had it so he could sleep at the DC on the TN leg of the trip.  

 

Thank you for the information. Sometimes I had to wake the driver when I came in to work--and there were times when I go inside and come back out to try again to wake the driver.

Johnny

  • Member since
    April 2016
  • 1,447 posts
Posted by Shadow the Cats owner on Saturday, May 18, 2019 12:54 PM

We give 2 free hours from the Appointment time agreed to by our shipper and customer and our load planning team.  So if say a driver is early well then that driver is cooling their heels until their appontment time then the 2 hours of free time we give in all our contracts starts.  Beyond that is our standard detention time rates and fees.  If our driver is early more power to him however he can not get paid for detention time until his appointment time is 2 hours past.  

 

My husband was an OTR driver and for a few months had a kind of dedicated loop West Chicago to some DC for McDonalds in TN about 1 hour from Memphis then over to Memphis to Coors and back to West Chicago and start all over again.  He did 3 rounds of that a week normally with a grand total of 3600 miles for all his miles.  He had it so he could sleep at the DC on the TN leg of the trip.  

  • Member since
    August 2005
  • From: At the Crossroads of the West
  • 11,013 posts
Posted by Deggesty on Saturday, May 18, 2019 10:24 AM

Quoting Overmod:"Reply by Overmod

 

 
Murphy Siding
About 2 years ago BNSF told everybody in our area that they were cutting local service from 5 days a week to 3 days a week in order to serve us better.

 

You weren't listening carefully enough - they said 'service'."

Watch your language!Smile

A question rfor Shadow's owner: Of course, my last experience with this was about than 15 years ago, but what demurrage (or equivalent) charges would have been made when a driver arrived with a load early, early in the morning and had to wait until 7:30 (the time I arrived at work) to unload?

Johnny

  • Member since
    March 2016
  • From: Burbank IL (near Clearing)
  • 13,540 posts
Posted by CSSHEGEWISCH on Friday, May 17, 2019 7:09 AM

JPS1
 What percentage of the shippers is unhappy with the operational changes is the question.  Is it 1/2 of one percent or is it 15 percent?  Without some comparative statistical data, it is impossible to gage the magnitude of the problem.

The large company that I worked for had 3.8 million customers.  On any given day some of them were unhappy with our services.  As it turned out, however, based on extensive research by an independent evaluator, the average number of unhappy customers was less than 1/2 of one percent.  

 
When a regulatory body like the STB is involved, ignoring the complaints of small shippers carries a sizable political and public relations risk.
The daily commute is part of everyday life but I get two rides a day out of it. Paul
  • Member since
    September 2002
  • From: North Carolina
  • 1,905 posts
Posted by csxns on Thursday, May 16, 2019 3:22 PM

Shadow the Cats owner
need a visit from the police

You can add dump truck drivers to the list.

Russell

  • Member since
    December 2018
  • 865 posts
Posted by JPS1 on Thursday, May 16, 2019 1:31 PM

Brian Schmidt
 In written testimony, companies say operational changes have led to unfair fees, logistical issues

http://trn.trains.com/news/news-wire/2019/05/10-shippers-complain-to-regulators-about-psr-related-charges  

What percentage of the shippers is unhappy with the operational changes is the question.  Is it 1/2 of one percent or is it 15 percent?  Without some comparative statistical data, it is impossible to gage the magnitude of the problem.

The large company that I worked for had 3.8 million customers.  On any given day some of them were unhappy with our services.  As it turned out, however, based on extensive research by an independent evaluator, the average number of unhappy customers was less than 1/2 of one percent.  

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Thursday, May 16, 2019 1:04 PM

BaltACD
 
Euclid
The customer complaint seems to be that extra cars are waiting at their plant now and they rack up extra demurrage charges because the customers can't use the cars fast enough.  So why don't the railroads leave the extra cars on the customer's propery exempt from demurrage as though the cars were actually waiting on the railroad's property.  Wouldn't that be fair?  Why should the customer be charged demurrage when it is not they who are letting the cars stand around unproductive.  

 

Demurrage begins to accrew when cars are actually or constructively placed - the clock starts to run on the first 7 AM after placement. Before PSR shippers and consignees were allowed 48 hours to either load or unload the cars as necessary, what the requirements are today I have no idea.  Cars are constructively placed when the customers facility cannot have the cars physically placed because it is full.  Cars placed at 8 AM have their demurrage clock start ticking at 7 AM the following day.  In pre-PSR days a car arriving 8 AM on Friday would not have it's demurrage clock start until 7 AM on Monday.

There are also Open Gate and Closed Gate customers.  For open gate customers cars are placed on the next switch after arrival at the serving yard - if the customer's facility has the room.  If not, the cars will be constructively placed.  For closed gate customers all cars are constructively placed upon arrival at the serving yard.  Customers then order the cars in by specific car number for their regular switches.

HAZMAT customers MUST accept their loaded cars on the first switch after arrival.  FRA regulations prohibit storing of HAZMAT on carrier tracks - this causes such customers to lease tracks from the carrier in the serving yard.  From a liability standpoint cars on the leased track are the customers responsibility, not the railroad should a incident happen.

Demurrage applies to railroad owned cars - it does not apply to private owner cars that have been leased to the shipper and/or consignee (the lease agreement of the owner will specify what conditions will to the utilization of the cars and the fees for 'storage').

In many cases - the customers create their own problems.  We know "Murphy Siding" is in the lumber business.  For the sake of MY argument, lets say his track can hold 3 cars at the dock and the lead will hold 3 more cars.  For the sake of the argument - Murphy's 'buyer' finds a 'deal and buys 10 carloads from a British Columbia supplier and the 'buyer also buy another 10 carloads from Quebec - through the course of 'normal' transportation all 20 cars show up at the serving yard for Murphy Siding - What is Murphy to do - 20 cars and he can unload 3 cars a day.  Demurrage cha-ching!  

There are more permutations to the carrier customer relationship than people realize - can the carriers be heavy handed? No doubt!  Can the customer not understand the rules? No doubt

Ask Shadow the Cat just how much her OTR carrier collects in 'waiting time' where the truck arrives the plant at 9 AM but the company won't allow the trailer to its loading dock until 3 PM - 6 hours of driver time thrown away.

 

   For reasons that have never been clear to me, we have 48 hours to unload a car before getting demurrage charges. The clock starts at midnight after the car is spotted until we release the car. Saturdays and Sundays count.

     We can unload three cars at a time and rarely get more than one or two at a time. When four show up at once, the clock starts as normal. Once we release the first three cars the clock stops. It restarts at 48 hours once the 4th car is switched and can be unloaded. I try not to think too hard about some of the logic behind the rules. It works for us and that’s good enough. In 10 years we’ve never had a demurrage charge.

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Thursday, May 16, 2019 12:54 PM

Euclid

From the article, it sounds like the railroads rasied the tariff amounts in addition to the fact that there are more tariffs incurred due to car utilization delays caused by too many cars being delivered to customers at one time.  Why would they raise the tariff amounts? 

 

To better serve the customer? Mischief

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    January 2014
  • 8,221 posts
Posted by Euclid on Thursday, May 16, 2019 10:53 AM

From the article, it sounds like the railroads rasied the tariff amounts in addition to the fact that there are more tariffs incurred due to car utilization delays caused by too many cars being delivered to customers at one time.  Why would they raise the tariff amounts? 

  • Member since
    April 2016
  • 1,447 posts
Posted by Shadow the Cats owner on Thursday, May 16, 2019 6:29 AM

csxns

 

 
BaltACD
And form the worst catagory of truck drivers I have ever encountered on the highways.

 

Here in NC they pass stoped school buses.

 

 

I won't aruge with you on most local drivers we have several carriers around here that all need a visit from the police on what safe driving means.  Let alone what a safe amount of cargo is for a trailer.  The companies that live in that 100 air mile radius of their company and get away with no logbooks are the worst in my eyes.  All my drivers are required to log everything they do as they do it.  These places all they are required to do is have a time clock and drive.  

 

As to Balts question if a place refuses to unload or load one of my drivers for 6 hours the first 2 are free the next 4 are billed to them at the rate of 400 an hour.  We also will do everything including taking that shipper and consignee to court if need be to collect.  Regardless of when we collect we pay the drivers 60 bucks and hour for sitting.  Safeway foods hates to see us if that tells you anything about how agressive we are about collecting.  I looked at their file yesterday and they currently own close to 40 grand in detention time fees.  We only go to 2 of their DC's with straight pulloff loads.  They know it our drivers know it yet they still delay my drivers on average 8 hours every time there.  We deliver a load a week to those DC's and we are the only carrier with a contract with the shipper that will haul to them.  

  • Member since
    September 2002
  • From: North Carolina
  • 1,905 posts
Posted by csxns on Wednesday, May 15, 2019 7:05 PM

BaltACD
And form the worst catagory of truck drivers I have ever encountered on the highways.

Here in NC they pass stoped school buses.

Russell

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Wednesday, May 15, 2019 5:02 PM

Shadow the Cats owner
How many logging railroads are left. In the USA and Canada the number is zero. Trucks haul it to the mill.

And form the worst catagory of truck drivers I have ever encountered on the highways.

Never too old to have a happy childhood!

              

  • Member since
    April 2016
  • 1,447 posts
Posted by Shadow the Cats owner on Wednesday, May 15, 2019 4:56 PM

How many logging railroads are left. In the USA and Canada the number is zero. Trucks haul it to the mill.

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Wednesday, May 15, 2019 4:13 PM

Customers sometimes do create their own problems; however, a good transportation supplier will know enough about all involved parties so that most problems can be averted. For example today.. had a couple of heavy 48K steel coils destined to ship to a receiver in NJ. I know very well that this receiver's crane can't handle that weight.. they'd either need to reconfigure to two coils of 24K each or find another intermediate receiver with a bigger crane. Fortunately we flagged the problem before it became too serious.. shipper decided on the first course of action, and a major headache was thereby averted. And that's just one example.. so many more that crop up every day. I'm sure its the same with rail. Details like siding length.. condition of track.. work crews on site etc are all important. Miss one detail and everything falls to pieces.  

  • Member since
    January 2002
  • From: Canterlot
  • 9,575 posts
Posted by zugmann on Wednesday, May 15, 2019 3:32 PM

BaltACD
There are more permutations to the carrier customer relationship than people realize - can the carriers be heavy handed? No doubt! Can the customer not understand the rules? No doubt

But we have to remember - we don't make anything.  We are customer service.  I think some higher ups forget about that from time to time.

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Wednesday, May 15, 2019 3:27 PM

Euclid
The customer complaint seems to be that extra cars are waiting at their plant now and they rack up extra demurrage charges because the customers can't use the cars fast enough.  So why don't the railroads leave the extra cars on the customer's propery exempt from demurrage as though the cars were actually waiting on the railroad's property.  Wouldn't that be fair?  Why should the customer be charged demurrage when it is not they who are letting the cars stand around unproductive.  

Demurrage begins to accrew when cars are actually or constructively placed - the clock starts to run on the first 7 AM after placement. Before PSR shippers and consignees were allowed 48 hours to either load or unload the cars as necessary, what the requirements are today I have no idea.  Cars are constructively placed when the customers facility cannot have the cars physically placed because it is full.  Cars placed at 8 AM have their demurrage clock start ticking at 7 AM the following day.  In pre-PSR days a car arriving 8 AM on Friday would not have it's demurrage clock start until 7 AM on Monday.

There are also Open Gate and Closed Gate customers.  For open gate customers cars are placed on the next switch after arrival at the serving yard - if the customer's facility has the room.  If not, the cars will be constructively placed.  For closed gate customers all cars are constructively placed upon arrival at the serving yard.  Customers then order the cars in by specific car number for their regular switches.

HAZMAT customers MUST accept their loaded cars on the first switch after arrival.  FRA regulations prohibit storing of HAZMAT on carrier tracks - this causes such customers to lease tracks from the carrier in the serving yard.  From a liability standpoint cars on the leased track are the customers responsibility, not the railroad should a incident happen.

Demurrage applies to railroad owned cars - it does not apply to private owner cars that have been leased to the shipper and/or consignee (the lease agreement of the owner will specify what conditions will to the utilization of the cars and the fees for 'storage').

In many cases - the customers create their own problems.  We know "Murphy Siding" is in the lumber business.  For the sake of MY argument, lets say his track can hold 3 cars at the dock and the lead will hold 3 more cars.  For the sake of the argument - Murphy's 'buyer' finds a 'deal and buys 10 carloads from a British Columbia supplier and the 'buyer also buy another 10 carloads from Quebec - through the course of 'normal' transportation all 20 cars show up at the serving yard for Murphy Siding - What is Murphy to do - 20 cars and he can unload 3 cars a day.  Demurrage cha-ching!  

There are more permutations to the carrier customer relationship than people realize - can the carriers be heavy handed? No doubt!  Can the customer not understand the rules? No doubt

Ask Shadow the Cat just how much her OTR carrier collects in 'waiting time' where the truck arrives the plant at 9 AM but the company won't allow the trailer to its loading dock until 3 PM - 6 hours of driver time thrown away.

Never too old to have a happy childhood!

              

  • Member since
    September 2003
  • 21,669 posts
Posted by Overmod on Wednesday, May 15, 2019 2:51 PM

Euclid
Why should the customer be charged demurrage when it is not they who are letting the cars stand around unproductive.

The answer is the same as 'why should drivers in California incur $273 fines for driving in the carpool lane' or 'why take farebeaters off light rail in handcuffs'.  Because they think they can.

One of the fascinating things about the "PSR" scam is that 'precision scheduling' doesn't mean what you or I or the customers think it ought to mean.  All these years since W. Edwards Deming taught the Japanese how to win the Second World War should have left us with transportation that supports lean and JIT manufacturing, by 'precision scheduling' deliveries in a time window that minimizes dead overhead while not restricting practical production or operations.  While railroading is not as good at this as good custom-critical truck operators, they can certainly work with shippers to determine their needs.  But most of this current Hilal-and-Hunter show stuff isn't to benefit the customers, who appear to be little more than tolerated as a reason to Run Trains, but to improve technical metrics like the OR by making as much use of capital (including human capital) as possible without actually spending more money unless they have to.  This is cute as far as it goes, leads to all sorts of fun operations-research papers, in fact points us at the charming prospect that railroads can pick 'n choose their customers just to the point the new and streamlined corporate physical plant just services things up to its comfortable capacity... little or no need for costly and possibly surplus-to-requirements physical plant improvements for "prospective" traffic or hard-to-get new business.  Yes, it's a perversion on the tenets of value investing (and it's interesting to see how Warren Buffett does and doesn't tinker with his management team at BNSF to actually maximize value when he's fully able to determine what it constitutes) but to a society of day-trading coupon clippers, it's probably a sweet spot of minimized risk in a world where they know full well the whole OTR market is incapable of expanding to seize any traffic they care much about.

  • Member since
    January 2014
  • 8,221 posts
Posted by Euclid on Wednesday, May 15, 2019 2:33 PM

zugmann
 
Euclid
How could the railroad industry accomplish this goal?

 

Have enough people and engines to do it.  Oh wait, that goes against PSR as well....

 

It's not an exact science out here (as they would like).  Customer A may get a bunch of cars, but can only handle 5 at a time at their inudstry.  In a perfect world, they could get 5 in and 5 out every day, and wouldn't need any excess cars stored in their nearest yard.  But any small interruption in the pipeline (derailment, missed connection, weather, a train not running for lack of crews, then suddenly they are high and dry for a day or two.

I know PSR wants to tell the customer what they want, but that business model doesn't always seem to work out.

 

 

 

The customer complaint seems to be that extra cars are waiting at their plant now and they rack up extra demurrage charges because the customers can't use the cars fast enough.  So why don't the railroads leave the extra cars on the customer's propery exempt from demurrage as though the cars were actually waiting on the railroad's property.  Wouldn't that be fair?  Why should the customer be charged demurrage when it is not they who are letting the cars stand around unproductive.    

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Wednesday, May 15, 2019 1:03 PM

Shadow the Cats owner
 
LithoniaOperator

What is the OTR industry?

 

 

 

 

The people that the Manufactors and consumers of everything turn to when the railroad excutives come up with a Moronic Idea such as PSR.  The men and women that haul 70 percent overall and 100 percent on a final basis everything that gets used in this nation.

 

Those of us with a rail spur would disagree.

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    January 2002
  • From: Canterlot
  • 9,575 posts
Posted by zugmann on Wednesday, May 15, 2019 12:17 PM

Euclid
How could the railroad industry accomplish this goal?

Have enough people and engines to do it.  Oh wait, that goes against PSR as well....

 

It's not an exact science out here (as they would like).  Customer A may get a bunch of cars, but can only handle 5 at a time at their inudstry.  In a perfect world, they could get 5 in and 5 out every day, and wouldn't need any excess cars stored in their nearest yard.  But any small interruption in the pipeline (derailment, missed connection, weather, a train not running for lack of crews, then suddenly they are high and dry for a day or two.

I know PSR wants to tell the customer what they want, but that business model doesn't always seem to work out.

 

 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

  • Member since
    January 2003
  • From: Kenosha, WI
  • 6,567 posts
Posted by zardoz on Wednesday, May 15, 2019 10:00 AM

Shadow the Cats owner
There isn't enough trucking capacity in the industry left to handle what the Railroads that are adopting PSR is trying to drive off....Yes we in the OTR industry are about to ask for relief also from the Railroads and their PSR crap.  Why it is clogging up the logistical pipeline and sooner or later it is going to hammer the economy hard.

No worries! The new tariffs will take care of all that extra tonnage.

  • Member since
    January 2014
  • 8,221 posts
Posted by Euclid on Wednesday, May 15, 2019 9:35 AM

It sounds like what is needed is Precision Scheduled Railroading that has the ability to deliver individual railcars to shippers exactly when they request them; no sooner and no later.  That way, cars would get the best possible utilization without the need for demurrage charges unless a customer holds the car too long through no fault of the railroad (for delivering more cars than the customer needs).   

How could the railroad industry accomplish this goal?

 

  • Member since
    April 2016
  • 1,447 posts
Posted by Shadow the Cats owner on Wednesday, May 15, 2019 8:31 AM

LithoniaOperator

What is the OTR industry?

 

 

The people that the Manufactors and consumers of everything turn to when the railroad excutives come up with a Moronic Idea such as PSR.  The men and women that haul 70 percent overall and 100 percent on a final basis everything that gets used in this nation.

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Tuesday, May 14, 2019 8:37 PM

LithoniaOperator
What is the OTR industry?

Over The Road trucking.

Never too old to have a happy childhood!

              

  • Member since
    December 2017
  • 2,671 posts
Posted by Lithonia Operator on Tuesday, May 14, 2019 8:33 PM

What is the OTR industry?

Still in training.


  • Member since
    April 2016
  • 1,447 posts
Posted by Shadow the Cats owner on Monday, May 13, 2019 8:59 PM

PSR is driving more freight to the OTR industry and straining our already limited capacity to the point at least here we are at close to the point of not being able to take on anymore customers or loads.  Yes your hearing that right we can not grow fast enough to absorb everything that UP NS and CSX is driving to us.  There isn't enough trucking capacity in the industry left to handle what the Railroads that are adopting PSR is trying to drive off.  Sooner or later the STB is going to have to step up and force changes onto the railroads and how they deal with their customers.  Yes we in the OTR industry are about to ask for relief also from the Railroads and their PSR crap.  Why it is clogging up the logistical pipeline and sooner or later it is going to hammer the economy hard.

Moderator
  • Member since
    January 2011
  • From: Wisconsin
  • 1,532 posts
Posted by Brian Schmidt on Sunday, May 12, 2019 10:59 AM

In written testimony, companies say operational changes have led to unfair fees, logistical issues

http://trn.trains.com/news/news-wire/2019/05/10-shippers-complain-to-regulators-about-psr-related-charges 

Brian Schmidt, Editor, Classic Trains magazine

Join our Community!

Our community is FREE to join. To participate you must either login or register for an account.

Search the Community

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy