New federal rules make all delayers now liable for rail demurrage

In Transit

By Paul J. Kozacky and Jessica M. Fricke

Paul J. Kozacky is a partner at Kozacky & Weitzel P.C., where he is a counselor and trial lawyer for business clients and has concentrated on transportation and maritime law. He can be reached at pkozacky@kozacky.com. Jessica M. Fricke is a commercial litigation associate at Kozacky & Weitzel P.C. who focuses on surface transportation contracts and controversies. She can be reached at jfricke@kozacky.com.

Posted May 19, 2014 2:43 PM

Updated June 23, 2014 12:12 PM

For those unfamiliar with the term, demurrage is the charge imposed by rail carriers for the detention of rail cars when they are held for loading or unloading beyond a specified amount of time. (It also applies to delaying ships. Motor carriers term such delay as detention). While it is long established that demurrage can be assessed against shippers and consignees, the ability of rail carriers to impose demurrage on intermediaries, such as warehousemen, pier operators and transloaders, has not always been clear …

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