In response to new supplemental security actions issued by the Transportation Security Administration regarding the rail transportation of Toxic Inhalation Hazard (TIH) commodities such as anhydrous ammonia, BNSF Railroad will dramatically increase its demurrage and private car storage policy for TIH shipments beginning May 1, according to an April 2 letter from Agrium Inc. to its customers.
Agrium said all U.S. Class 1 rail carriers will be implementing several measures in the coming weeks to comply with the TSA security regulations, which were approved in late 2006 (GM Feb. 5, p. 1). These include: 1) TIH cars will no longer be held in rail yards or other railroad-controlled trackage awaiting space in a receiver’s facility, and receivers will be required to accept TIH cars upon arrival; 2) outbound TIH cars will not be held in rail yards or other rail facilities awaiting billing, and shippers will be required to provide billing before TIH cars will be pulled; and 3) TIH customers will be required to have personnel physically present whenever TIH cars are spotted or pulled from customer facilities.
Agrium said railcars containing TIH commodities that are “constructively placed on BNSF tracks” will be subject to a $500/car charge for the first 24 hours or portion thereof, and a $1,000/car charge or portion thereof for each day thereafter until space is made available. Agrium said these charges will be assessed against the receiver of the product, and at this point apply only to BN (Class 1) trackage and do not include residue cars.
“Although we have yet to hear of similar action from other Class 1 carriers, we anticipate similar programs and charges to be announced in the near future,” Agrium said in the letter. “Although developments on this subject will continue to occur, at this time we wanted to make you aware of the impending policy changes and ensure that we work with you as effectively as possible to manage and control the timing and receipt of your anhydrous ammonia shipments with Agrium.”
AGrium advised that it “will not bear responsibility for demurrage charges on your shipments, nor will we assume responsibility for carrier actions that result in car bunching and subsequent capacity constraints at your facilities.”