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  7. Storage Charge
Commercial

Storage Charge

Definition

A fee assessed by a railroad for holding a car or container at a railroad-owned facility beyond the free time allowed for loading, unloading, or pickup. Storage differs from demurrage in that it applies to equipment held in railroad facilities rather than at customer locations. Storage charges incentivize shippers to promptly retrieve cars and containers.

Related Terms

Demurrage

A charge assessed by a railroad against a shipper or consignee for detaining a railcar beyond the allowed free time at a loading or unloading facility. Demurrage incentivizes rapid car turnover and compensates the railroad for lost car utility. It is distinct from detention, which applies to equipment held at non-railroad locations.

Detention

A charge levied when intermodal equipment such as chassis or containers is held beyond the allowed free time at a shipper or consignee's facility. Detention applies specifically to intermodal assets at non-railroad locations, differentiating it from demurrage. Both charges encourage efficient equipment utilization.

Accessorial Charges

Additional fees charged by a railroad for services beyond the basic point-to-point transportation, such as reconsignment, storage, demurrage, special handling, or fuel surcharges. Accessorials can significantly increase the total cost of a shipment above the base linehaul rate. Shippers should review tariff schedules carefully to understand all potential accessorial exposure.

Free Time

The period allowed by the railroad during which a shipper or consignee may load or unload a car without incurring demurrage charges. Free time allowances vary by commodity, car type, and tariff. Once free time expires, demurrage begins to accrue at the published daily rate.

More in Commercial

Car TraceBill of LadingRatePublished RateWaybillCaptive Shipper