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Rationalization of freight rates for Parcel traffic — discounted freight in empty direction

FREIGHT MARKETING CIRCULAR No. 15 of 2025 · 2025-06-13
Circularfreight

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Circular numberFREIGHT MARKETING CIRCULAR No. 15 of 2025
File numberNo. 2024/TC(FM)/11/14
Date2025-06-13
TypeFreight Marketing Circular
Topicfreight
DirectorateTraffic Commercial (Freight Marketing)

Summary

Rationalization of freight rates for Parcel traffic — discounted freight in empty direction ' (B.) The discounted freight as mentioned above shall not be applicable on the Parcel

Text of the circular

FREIGHT MARKETING
CIRCULAR No. [5 of 2025

भारत सरकार / GOVERNMENT OF INDIA
रेल मंत्रालय / MINISTRY OF RAILWAYS
(रेलवे बोर्ड / RAILWAY BOARD)

No. 2024/TC(FM)/11/14 New Delhi, dated 48 .06.2025

The General Managers,
All Zonal Railways.

Sub: Rationalization of freight rates for Parcel traffic — discounted freight
in empty direction.

Ref: (i) FM Circular No. 26 of 2021, issued vide Board’s letter no. TC-
I1/2046/2020/Parcel policy-Pt.(3)(3367027), dtd. 22.11.202.
(ii) FM Circular No. 14 of 2025 dated 13.6.2025

ने ने OK के के

Instructions have been issued vide FM Circular No. 26/2021, dtd. 22.11.2021
wherein powers have been delegated to PCCM of the Zonal Railway to grant graded
discount in freight on applicable scale for indented Parcel trains and indented (piece-
meal) Parcel Vans, for distance not more than 1500 km subject to the utilization of Parcel
Vans as stipulated therein.

2, On the basis of feedback received and a request received from Zonal Railways,
the matter has been examined further, and it has been decided that in supersession of the
above mentioned instructions (contained in the FM Circular No. 26/2021), the Zonal
Railways may charge a discounted freight on indented Parcel trains and indented (piece-
meal) Parcel Vans -- provided the utilization of Parcel Vans (either piece-meal Parcel
Vans or part of indented Parcel trains), returning to other Railways after unloading on the
Zonal Railway, has been below the stipulated threshold, as under:

Frei

Utilization of VPs Return Trip (single trip) Round Tri
Below 25% 50% (Fifty percent) of the |.1.35 times of single journey
freight at applicable scale

applicable scale
70% (Seventy percent) of
the applicable scale

More than 25% and
less than 40 %

1.50 times of single journey
freight at applicable scale
Note:

(A.) The discounted freight as mentioned above shall not be applicable on Luggage Rates
for luggage booking.

' (B.) The discounted freight as mentioned above shall not be applicable on the Parcel
Vans attached to trains being charged at S-scale.

(C.) No other discount, including volume-based discounts, shall be applicable along with

this discount in empty direction.
॥

25

Page 1 of 3

FREIGHT MARKETING
CIRCULAR No. 15 of 2025

3. The powers to implement the above mentioned discounted freight shall rest with
Principal Chief Commercial Manager of the Railway, who shall exercise these powers
in consultation with the Principal Financial Advisor of the Railway.

4. To begin with and in order to streamline the above mentioned provision of
discounted freight, analysis for utilization of Parcel Vans (as detailed at Para 2 above)
during the previous financial year i.e. April’ 2024 to March’ 2025 shall be immediately
conducted by each Zonal Railway, which shall be reviewed after completion of each
financial year. It may be ensured that entire process of the current analysis is completed
by 20.06.2025 (and mid of June for the subsequent financial year.). Based on the
analysis, Railway-wise utilization (in %) of the Parcel Vans shall be circulated to all
concerned, so as to enable implementation of the above mentioned discounted freight
w.e.f. 01.07.2025 (and 1* of July for the subsequent financial year). The discounted
freight shall remain in effect upto 30.06.2026 or till the next revision in utilization of
Parcel Vans, whichever is later.

3 Initially, on completion of 06 (six) months (i.e. 31.12.2025) of the implementation
of the above mentioned discounted freight, Zonal Railways shall furnish a detailed report
on the same, and shall continue to furnish the same on half-yearly basis, to Board for
reviewing and improve the scheme, if required.

6. The discounted freight scheme shall be applicable on experimental basis for a
period of 02 (two) years, 1.6. upto 30.06.2027.

7. PCCM of the Zonal Railway may co-ordinate with other Zonal Railways, and
specifically sees that the above mentioned discounted freight does not cause any
diversion of existing parcel traffi

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