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| Type | Commercial Circular |
|---|---|
| Topic | freight |
| Currency | Currency not verified |
letting of the siding is not permitted, without the prior permission of the railways Note: Siding charges, demurrage charges and shunting charges should be collected locally,
Station to Station Rates [pee a Waival of Demurrage and Wharfage Charges 6A. | Settlement of Claims Railway Claims Tribunal | 6. |Frauds in Goods Sheds, : गा Inspection of Goods Sheds थी. Opening of Sidings : कर 27 1 Roll-On-Roll-Off Scheme HN |W |S aay Scanned by CamScanner MDTC/DWR Advance Commercial (Goods) Theory of Rates, Classification of commodities: All commodities are charged alike, but are classified into different classes. The commodity is charged for at the class applicable to them. The classification of various commodities is indicated in the Goods Tariff Part-I Vol-I. The following principles are taken into consideration in the classification of commodities. e Cost of service e Value of service e What the traffic can bear. i. Cost of service: Cost of service represents the cost of transporting a commodity from one place to another. The class allotted to any commodity should be such that the freight charges realized on it are not less than the cost of transportation. So, the cost of service principle determines the minimum freight charges to be levied in order to cover the cost of transportation. ii. Value of service: The value of service principle sets out the value of service rendered by the railways in transporting a commodity from one place to another. This represents the maximum freight charges that can be levied on the consignment or the ceiling in the freight charges or value of the service rendered, i.e. the difference between the value appreciated by the movement of the quantity from one place to another and normal ~ margin of traffic plus expenses incidental to transportation. iii. What the traffic can bear: What the traffic can bear represents the freight charges that can be reasonably levied on the transportation of a commodity. i.e. 1. Collection of freight charges lower than the cost of haulage in the case of low rated, bulky and essential commodity that cannot support a higher freight charges. 2. Rating at the middle level of such of the commodities as can support the cost of haulage and also provide a margin towards profit. 3. Levy of high level of freight charges on such of the High value commodities which can meet the element of haulage charges and also make a contribution towards the profit element, plus a subsidy for the carriage of the commodity for below the cost haulage. The difference between the value of service principle and what the traffic can bear is that, the value of service represents the ultimate maximum on the freight to be levied while what the traffic can bear represents the graded levy of freight charges taking into consideration the capacity of individual commodities for supporting a high, medium or low incidence of freight burden. S.Hari Manohar 1 | July 2018 Scanned by CamScanner MDTC/DWR Advance Commercial (Goods) Cost of service is worked out taking into account two elements: 1. Expenditure on account of permanent assets and staff. 2. Variable expenditure directly related to the magnitude of service rendered. Ex. Diese], * . नि ‘ J The variable cost is known as ‘incremental cost’ or dependent cost. Other factors: 1. National priorities, Eg. Movement of food grains and fertilizers 2. Movement of raw material to produce essential products (Goods) at reasonable level] so as to make available finished essential goods at a cheaper rate. Characteristics of goods: ely determines the rate to be charged. ld afford enough revenue to cover the cost of e return as capital investment. 1. The weight volume ratio proportionat 2. The rate structure in its totality shou transportation and also provide a reasonabl The following principles should also govern the rating policy: 1. Rate should not be horizontal, flat or uniform for all distances but should be telescopic in character, i.e. Rate per tonne per km should progressively decease as the distance increases. 2. The rate for train load traffic should be lesser than wagon load traffic. 3.
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