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June 6, 2014 — CN is implementing a change to CN 9000, the optional services tariff for carload, effective July 15, 2014 in order to comply with the Surface Transportation Board’s (STB) issuance of new demurrage regulations.* A summary of this change is listed HERE.

As described in CN 9000, CN currently assesses payment of asset use charges to the shipper at origin, the consignee at destination, or en route, or to any other third party mutually agreed to in writing with CN.

The STB’s regulations indicate that any person receiving rail cars from a rail carrier for loading or unloading in the United States may be held responsible for asset use charges. Examples of such “person” include warehouses, distribution centers, care of parties, third parties, etc. As set forth in Appendix A to the decision, the regulations (49 C.F.R. 1333.3) provide that:

“Any person receiving rail cars from a rail carrier for loading or unloading who detains the cars beyond the period of free time set forth in the governing demurrage tariff may be held liable for demurrage if the carrier has provided that person with actual notice of the demurrage tariff providing for such liability prior to the placement of rail cars. The notice required by this section shall be in written or electronic form.”

This new ruling represents a change in CN’s current billing practice. Effective July 15, 2014, CN will be assessing responsibility for asset use incurred in the U.S. to any person receiving rail cars for loading and unloading in accordance with the above regulation. Asset use charges incurred in Canada will remain unchanged – the responsible party remains the shipper for rail cars to be loaded and the consignee for rail cars to be unloaded. As amended to reflect the new regulation, CN’s asset use (demurrage) charges are published in CN 9000, with the link to the tariff provided HERE.

To ensure you always have the latest copy of this publication, we encourage you to register on CN’s eBusiness tool at www.cn.ca and subscribe to CN’s optional services’ tariffs. If you have any questions regarding this change, please contact your Account Manager or CN's Sales Center at 1-888-MOVIN-CN.

Thank you, we appreciate your business.

Fiona Murray CN, Vice-President, Corporate Marketing

*The new demurrage regulations were adopted by the STB in Ex Parte 707, Demurrage Liability, decision served April 11, 2014. The decision may be accessed on the STB’s website at www.stb.dot.gov.