Railroad Protocol

Industrial Rail Siding Storage & Demurrage Agreement Cheatsheet

📐 Track Standards & FRA Inspection

  • ✅ FRA Track Class: Siding must meet minimum FRA Class 1 (10 MPH freight) or Class 2 (25 MPH) standards.
  • ✅ Tie & Gauge Tolerances: Cross-tie integrity inspected semi-annually; track gauge maintained within 56.5 to 57.5 inches.
  • ✅ Derail Device: Split-rail or hinged derail installed at interchange clearance point to protect Class I mainline.

⏱️ Demurrage Free Time & Billing Rules

  • ✅ Standard Free Time: 24 to 48 hours free time commencing at 07:00 following constructive placement notice.
  • ✅ Daily Demurrage Rate: $75 - $150 per car per day billed on straight calendar days after free time expires.
  • ✅ Constructive Placement: Digital notification timestamp serves as legal trigger when siding track is blocked.

⚠️ Hazardous Material (Hazmat) Protocols

  • ⚠️ DOT Placarding: All tank cars must display valid 4-digit UN hazmat placards and emergency response paperwork.
  • ⚠️ Security & Containment: Hazmat cars require 24/7 solar illuminated perimeter, CCTV monitoring, and secondary containment.
  • ✅ Hazmat Surcharge: Minimum 20% - 35% premium added to standard daily track storage rates.

🔀 Interchange & Switching Operations

  • 💎 Switch Move Charge: $250 - $450 per car for intra-plant switching or Class I mainline turnout delivery.
  • 💎 Handbrake & Chock Verification: Every parked car must have mechanical handbrakes set + wheel chocks secured.
  • 💎 Insurance Requirement: Commercial rail operator liability insurance minimum $5,000,000 per occurrence.