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DEMURRAGE

DEMURRAGE. WHAT IS DEMURRAGE: The charge levied for detention of wagon beyond the permissible free time allowed for loading/unloading. OBJECTIVES: To reduce detention of wagons. To improve wagon turn around. GENERAL CONDITIONS.

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DEMURRAGE

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  1. DEMURRAGE WHAT IS DEMURRAGE: • The charge levied for detention of wagon beyond the permissible free time allowed for loading/unloading. OBJECTIVES: • To reduce detention of wagons. • To improve wagon turn around.

  2. GENERAL CONDITIONS • When a wagon demand is cancelled after physical supply of wagons, no free time is allowed and demurrage charge is levied. • Even if a single wagon is detained beyond free time, demurrage charge is levied for entire rake. • Demurrage charges should be collected locally and should not be included in railway receipts.

  3. DEMURRAGE CHARGES • Demurrage are levied at the rate of Rs. 150/- per hour or part of the hour, Per Wagon. • Half of the charges are collected for 4-wheeler wagon. • Demurrage are collected before effecting delivery in case of inward consignments and before issue of RR in case of outward consignments. This is applicable for traffic dealt at station/Goods Shed only and Not at Sidings (CC. 73 of 2008).

  4. FREE TIME IN HOURS

  5. FREE TIME IN HOURS-RC-1/12

  6. FREE TIME IN HOURS

  7. RECKONING OF DEMURRAGE FREE TIME UNIFORM WORKING HRS GOODS SHED

  8. CALCULATION OF DEMURRAGE CHARGES UNIFORM WORKING HRS GOODS SHED • Wagon Placed for U/L on 2/5/13 at : 0900Hrs • Free time for unloading : 5 Wkg Hrs • Wagon released on 2/5/13 at : 1800 Hrs • Free time Expires (0900+ 5) : 1400 Hrs • Excess Detention (1800 -1400) : 4 Hrs • DC Formula: No. of wagons X DC Hrs X Rate • DC Charges: 1 X 4 X 150 = Rs. 600/-

  9. CALCULATION OF DEMURRAGE CHARGES UNIFORM WORKING HRS GOODS SHED • Rake of (40) Wagons • Placed for U/L on 2/5/13 at : 1800Hrs • Free time for unloading : 9 Wkg Hrs • Rake released on 4/5/13 at : 1100 Hrs • Free time 2/5/13 (1800 -2200) : 4Hrs • Free time 3/5/13 (0600 -1100) : 5Hrs • Free Time Expires On 3/5/13 At :1100Hrs • Excess Detention 3/5/13 to 4/5/13(1100 -1100) : 24Hrs • DC Formula: No. of wagons X DC Hrs X Rate • DC Charges: 40 X 24 X 150 = Rs.1,44,000 /-

  10. RECKONING OF DEMURRAGE FREE TIME ROUND THE CLOCK WORKING GOODS SHED

  11. INCENTIVE OF RECKONING 50% TIME DURING NIGHTS. • During Night consignors are extended the Incentive of reckoning only 50% of the time taken between 22.00 hours and 06.00. • This shall be applicable provided the prescribed free time for loading/unloading falls between 22:00 – 06:00 Hrs, in round the clock /extended working goods shed. • This shall be applicable for the first night only. • Moreover the incentive shall be permitted for the first night of loading/unloading or removal of consignment from railway premises, and not for detention of wagons during subsequent nights.

  12. INCENTIVE IS NOT APPLICABLE IN CASES OF: • Private and assisted siding. • Customers who opt for ( T.I.E.L.S) Terminal Incentive cum Engine on load scheme at goods sheds.

  13. RECKONING OF FREE TIME • Reckoning of free time in goods sheds, Railway sidings and such private/assisted sidings where placement/release of rake is done through Railway’s loco: • If a rake is placed in one spur in one placement. • If a rake is placed in one spur in multiple placements • if a rake is placed in more than one Spurs.

  14. DEMURRAGE- RECKONING OF FREE TIME • Reckoning of free time in goods sheds, Railway sidings and such private/assisted sidings where placement/release of rake is done through Railway’s loco. • If a rake is placed in one spur in one placement: • Free time will be reckoned from the time of placement of the rake. Demurrage will be charged on excess detention which will be calculated as under: • ‘Excess detention = (time of release – time of placement) - free time’

  15. DEMURRAGE- RECKONING OF FREE TIME • Reckoning of free time in goods sheds, Railway sidings and such private/assisted sidings where placement/release of rake is done through Railway’s loco. • If a rake is placed in one spur in multiple placements: • The free time will start with the placement of 1st part of the rake. • However, intervening periods between the release time of the 1st part and time of placement of 2nd part, the release time of the 2nd part and time of placement of 3rd part of the same rake for loading/unloading and so on, should be treated as dies-non. • Demurrage will be charged on excess detention which will be calculated as under: • ‘Excess detention = (time of release of the last part – time of placement of first part) – free time – total period of dies non’

  16. DEMURRAGE- RECKONING OF FREE TIME • Reckoning of free time in goods sheds, Railway sidings and such private/assisted sidings where placement/release of rake is done through Railway’s loco. • If a rake is placed in more than one spurs: • Free time for the entire rake will commence from the time of placement of first part of the rake. • Demurrage charges will be calculated on the basis of deemed released time of the rake (after adjustment of dies non period). A rake will be deemed to have been released at the time at which the last wagon is released irrespective of the group/spur in which this wagon was placed. • If the time interval between first placement and subsequent placements (i.e. between 1st placement & 2nd placement, between 1st placement & 3rd placement, and so on) is more than two hours, then such excess time interval of over two hours shall be treated as dies non. • This dies non period, wherever applicable, will be deducted from the actual release time of the respective placements to arrive at deemed release time.

  17. IF A RAKE IS PLACED IN MORE than ONE SPURS • Demurrage will be charged on excess detention which will be calculated as under: • ‘Excess detention = (deemed release time of the rake – time of 1st placement) – free time’ • Deemed release time of a placement will be calculated as under: • ‘Deemed release time of a placement = actual release time of that placement – dies non, if applicable’ • Deemed released time of the rake will be the time at which the last wagon of the rake has been deemed to be released. For example, if the deemed released time of first placement is 1200 Hours, second placement is 1400 Hours and third placement is 1300 Hours, then 1400 Hours will be the deemed release time of that rake.

  18. ILLUSTRATION - 3

  19. OTHER ASPECTS IN DC • Cleaning of interior of wagons: • The consignee or his authorised agents shall hand over the unloaded wagons duly clearing the leftover and cleaning the interior of wagons. • If Consignee refuses to co-operate in this regard, the wagons are to be shown as under unloading and DC charges levied

  20. MULTI PARTY CONSIGNMENTS OF A SINGLE RAKE • Multi party/ multi-consignor/multi – consignee rakes shall be treated as a unit for levy of demurrage. • Free time for loading/unloading as permissible to the entire rake should be allowed.

  21. MULTI PARTY CONSIGNMENTS OF A SINGLE RAKE • The consignor(s) /consignee(s) who have detained their respective groups of wagons beyond the permissible free time should be made accountable for the detention and demurrage charges should be collected from him/them. • The demurrage on the entire rake, should be collected from the last party responsible, duly deducting the demurrage collected from the other consignor(s)/consignee(s).

  22. OTHER PENAL PROVISIONS ON DC • In case of excessive congestion at any terminal, CCM / COM / DRM can increase the demurrage charges . • The increase shall be progressively done subject to a maximum of 6 times of the prevalent rate . • Such Higher demurrage charges can be implemented after giving 48 Hrs of advance notice to consignors. • Forfeiture of WDRF and cancellation of pending indent at congested Goods shed.

  23. IMPACT OF DETENTIONS • Falling WTR (Wagon Turn Around): • Falling Wagon Kms/Wagon Days • Wagon Kms: wagon X Kms • Wagon x Days • Falling Average speed of trains

  24. IR DETENTION STATISTICS 2011-12 • Wagon Turn around - 5 Days • Wagon Kms/Wagon Day- 263 • Average Speed - 25 Km/ph • Wagon on move for - 9 to 10 Hours • Rest of the time (14 -15 hrs) Wagon is under handling (Loading or Unloading, Maintenance……) • Even if we could save one hour from these 14 - 15 Hrs, we can increase wagon earnings by about 14%.

  25. WHARFAGE WHAT IS WHARFAGE: • Wharfage is the charge levied for non removal of goods from station/railway premises after expiry of free time allowed. OBJECTIVE: • To discourage customers from utilizing railway premises as storage places.

  26. GENERAL CONDITIONS • Both Outwards as well as Inward goods not removed after completion of free time for removal are levied with Wharfage charge. • The consignor / consignee should first remove the consignment from the railway premises, deposit the amount of Wharfage charges.(RC-51-07) • No Wharfage will be levied on the consignment held by railway administration on lien in terms of Section 83 of Railways Act 1989. • For the purpose of Wharfage, Goods Sheds are classified into three Groups ( Groups I, II & III).

  27. GENERAL CONDITIONS • National Holidays, namely 26th January, 15th August and 2nd October will not be reckoned while calculating free time for removal of goods from railway premises and for charging. Not applicable in the case of • Live stock, • Perishable goods • Goods sheds which are notified for removal of goods without delay.

  28. CLASSIFICATION OF GOODS SHEDS Note:Free time for removal of Livestock: 3 Hours from the expiry of free time for loading/unloading of wagons/rake. ( Wharfage Rate is Rs. 5/- per animal per hour or part thereof.)

  29. WHARFAGE CHARGES Wharfage charge will be levied on per wagon, per hour basis uniformly for all types of wagons, whether 4 wheeler or 8 wheeler.

  30. INCENTIVE OF RECKONING 50% TIME DURING NIGHTS. • During Night consignors are extended the Incentive of reckoning only 50% of the time taken between 22.00 hours and 06.00. • This shall be applicable provided the prescribed free time for removal of consignment falls between 22:00 – 06:00 Hrs, in round the clock /extended working goods shed. • This shall be applicable for the first night only. • Moreover the incentive shall be permitted for the first night of loading/unloading or removal of consignment from railway premises, and not for detention of wagons during subsequent nights.

  31. HIGHER WHARFAGE • In case of excessive congestion at any terminal, CCM / COM / DRM can increase the Wharfage charges . • The increase shall be progressively done subject to a maximum of 6 times of the prevalent rate . • Such Higher Wharfage charges can be implemented after giving 48 Hrs of advance notice to consignors.

  32. THANK YOU

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