May 2009

 

Action:  Proper notification to Railroad carriers to establish appropriate and timely strike protection Rues.

It is critically important that transportation personnel be kept up to the minute on the possibility of a strike. Protection against very high demurrage costs offset by being sure proper rules is in effect to mitigate excessive costs. The demurrage can occur to apply on cars at the plant awaiting loading, loaded cars not yet released, and cars of materials inbound, but which have been placed on construction placement awaiting orders to switch into the plant. The difference between strike mitigated demurrage charges and normal demurrage are very large indeed. Proper rules in carrier tariffs, or specific items in contracts are very important.  All of these mitigating opportunities must be placed when the first striker shows up at your plant site! There are very many steps, which can be taken to protect your operations, but they must assuredly be accomplished and in place BEFORE  the strike activity begins!  It can be done later, but not very well if at all.  For example, during extremely tight supplies of fuel to operate the plant, advance leasing of extra tank cars WHEN THEY ARE AVAILABLE will provide a cushion to permit normal plant operations.  But you must arrange when the supplies are available and not when every one wakes up and the strike is on and the plant is NEAR to shutting down production! “Team Group C” has the execution responsibility.

 

 

 

 

 

 


TransAnalysis
291 McGowan Street
PO Box 5060
Fall River, MA
02723-0404

Phone: 508.646.1000
Fax: 508.646.1100