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  7. Switching Charge
Operations

Switching Charge

Definition

A fee assessed by a railroad for the local movement of cars within a terminal, between an interchange point and a customer facility, or for reciprocal switching. Switching charges cover the cost of locomotive power, crew, and track used in the switch move. They are published in tariffs and may be assessed in addition to the linehaul rate.

Related Terms

Linehaul

The primary transportation charge for moving freight between origin and destination, covering the over-the-road or mainline portion of the movement. Linehaul rates are the base rate component before the addition of fuel surcharges, accessorials, and terminal charges. Linehaul revenue is the largest single revenue source for railroads.

Terminal Charge

A fee applied at the origin or destination terminal to cover the cost of handling cars within a rail facility, including classification, inspection, and spotting. Terminal charges may be included in the linehaul rate or assessed separately. They reflect the cost difference between serving terminal customers versus through-move customers.

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.

Reciprocal Switching

An arrangement under which two or more competing railroads agree to switch each other's cars to and from industries served exclusively by the other, enabling shippers on one railroad to access the other's main line at a published switching charge. Reciprocal switching is a form of competitive access and is sometimes mandated by the STB. It is particularly important for shippers on short lines or in terminal areas.

More in Operations

Classification YardPullingReconsignmentDiversionHome CarBlocking