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.
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.
A railroad industry practice where a car is deemed to have been placed at a customer facility for purposes of calculating free time, even though physical placement is not possible due to congestion or other conditions at the facility. Constructive placement notices are sent to the shipper or consignee to begin the demurrage clock. It protects railroads from liability for delays caused by customer-side congestion.
The physical positioning of a railcar at a shipper's or consignee's loading or unloading spot, as opposed to constructive placement. Actual placement occurs when the car is in position and accessible for the customer's use. The date and time of actual placement is recorded and used to calculate demurrage.
The act of placing a railcar at a specific loading or unloading position at a customer's facility. A car is considered spotted when it is in position and available for the shipper's use. The date and time of spotting often marks the beginning of free time for demurrage purposes.