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SOTEU benefit’ under Hub&Spoke system of charging

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‘SOTEU benefit’ under Hub&Spoke system of charging For containers moving from originating point to destination via

Text of the circular

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

No.TC-I/2016/103/1 New Delhi, dt. of-af. .2017

CPM

FOIS

Camp:CRIS Chanakyapuri New Delhi-110021.

Sub: ‘SOTEU benefit’ under Hub&Spoke system of charging

Please refer to FOIS’ letter No.CAO/FOIS/TMS/RatesCircular/17 dt.12.04.2017 highlighting issue regarding preparation of RR under Hub& Spoke System.

The matter has been examined and remarks are enclosed herewith.

This issues in consultation with Traffic Transportation Dte. and with the concurrence of Finance Dte. of Railway Board.

(Shilpi Bishnoi) Director Traffic Commercial(Rates) Railway Board Copy to:

Chief Commercial Manager FA&CAO All Zonal Railways

re,

SUB: ‘50OTEU BENEFIT’ UNDER HUB&SPOKE SYSTEM OF CHARGING

सवा:

Ref: (i) Board’s letter No.2007/TC-I/302/1Pt.H dt.10.04.2017

(ii) Board’s letter No.2011/TT-III/73/9Vol.II dt.16.05.2015

(iii) FOIS’ letter No.CAO/FOIS/TMS/Rates Circular/17 dt.12.04.2017

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CRIS/FOIS Query

Remarks

During testing for implementation of guidelines it has been found that in some cases of Hub&Spoke System involving a long lead O-D pair in first leg and a short lead O-D pair in the second leg with chargeable rate as per Container Class Rate in the first leg and as per Haulage Charge per TEU in the second leg, negative chargeable freight is coming in the second RR. As there is check in the FOIS/TMS for not printing a RR with negative freight, printing of RR may be denied by the system during above-mentioned situation.

Negative RR will not be issued.

As per extant guidelines, the originating point will clearly on the RR whether container will go directly to the destination or will move via a specified hub. The Haulage Charge for the container will be charged from the originating point to the destination point for the entire distance of actual haulage via the specified hub. For the container transshipped at the hub, a subsequent RR with zero freight will be prepared for the distance from the hub to the destination duly cross-referring the original RR and the originating point on the subsequent RR.

For containers moving from originating point to destination via hub, the rate [viz.Container Class Rate(CCR) or Haulage Rate per TEU(FAK)] be levied by applying the criteria of notified commodity upto SOTEUs in a rake.

For new containers loaded at hub, CCR or FAK rates will be levied by applying above-mentioned criteria, while preparing RRs at the hub.

Illustration:

Suppose in a container rake, 60 containers are loaded with one type of notified commodity. Out of these 60 containers, 45 containers are declared to move upto destination point via hub. For these 45 containers, Haulage Charge will be levied from the originating point to destination point via hub @CCR rate and at the hub, zero RR will be prepared for these 45 containers duly cross referring the original RR. For the balance 15 containers carrying notified commodities, Haulage Charge will be levied @CCR rates from originating to hub.

Following situation may arise at hub -

(i)- If five (or less) new containers containing the same notified commodity are loaded at hub then the rake would be qualifying the criteria ‘notified commodity upto SOTEUs in a rake’. Hence, these five (or less) containers will be charged @Haulage Charge per TEU i.e.at FAK rates.

(ii)- If six (or more) new containers containing the same notified commodity are loaded at hub in the rake, they do not qualify the criteria ‘notified commodity upto SOTEUs in a rake’, so these six (or more) containers will be charged @CCR rates.

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