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Review of Demurrage/Penal Demurrage

No.TC-I/2024/20 · 2025-03-19
Circulartrain-services

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Circular numberNo.TC-I/2024/20
Date2025-03-19
TypeCorrigendum
Topictrain-services
DirectorateTraffic Commercial (Rates)

Summary

Review of Demurrage/Penal Demurrage Para | Base rate of Demurrage charge shall be | Base rate of Demurrage charge shall be

Text of the circular

Corrigendum No.56 of Rates Master Circular/Demurrage-Wharfage-Waiver/2016/0

भारत सरकार GOVERNMENT OF INDIA
रैल मंत्रालय MINISTRY OF RAILWAYS
(Yaa बोर्ड RAILWAY BOARD)

No.TC-I/2024/20 l/efile/6 (3474365)

General Manager
All Zonal Railways

Sub: Review of Demurrage/Penal Demurrage

New Delhi, dt. 19.03.2025

Ref: (i) Rates Master Circular/Demurrage-Wharfage-Waiver/2016/0

(ii) Corrigendum No.32 of Rates
Waiver/2016/0

Master Circular/Demurrage-Wharfage-

(iii) Board’s letter No.TC-I/2019/201/6 (3298964) dt.16.07.2021
(iv) Board’s letter No. TC-I/2022/20 I /efile/2 (3394909) dt.19.09.2022

Please refer to Corrigendum No.32 of Rates Master Circular/Demurrage-Wharfage-
Waiver/2016/0 vide which slab wise rate of Demurrage has been implemented and provision
for levy of Penal Demurrage has been revised.

The matter has been reviewed and it has been decided to revise the slab wise rate of
Demurrage and to do away with the provision of Penal Demurrage, as given below -

Chapter-I of Rates Master Circular/Demurrage-Wharfage-Waiver/2016/0

| | EXISTING GUIDELINES REVISED GUIDELINES
Para | Base rate of Demurrage charge shall be | Base rate of Demurrage charge shall be
3.1 Rs.150/- per 8-wheeled wagon per hour, or | Rs.150/- per 8-wheeled wagon per hour,

part of an hour, for detention of wagon in| or part of an hour, for detention of

excess of the permissible free time for | wagon in excess of the permissible free
loading or unloading. Demurrage Charge | time for loading or unloading.
will be levied in graded Demurrage | Demurrage Charge will be levied in

manner as under-

Duration of Rate of
excess detention Demurrage
(Beyond
prescribed free
time for
loading/unloading j
Upto 6 hours Base Rate
(2150 per wagon
per hour or part
thereof)

graded Demurrage manner as under-

Rate of
Demurrage

Duration of
excess detention
(Beyond
prescribed free
time for
loading/unloadin

Upto 6 hours

Base Rate
(2150 per
wagon per hour
or part thereof)

ee EEE ee
न No.455, Rail Bhavan, New Delhi-110001

y* |

Corrigendum No.56 of Rates Master Circular/Demurrage-Wharfage-Waiver/2016/0

Base rate + 10%

Ee 6 hours
upto 12 hours
Beyond 12 hours | Base rate + 25%
upto 24 hours

upto 48 hours
upto 72 hours rate

Beyond 72 hours | Thrice of Base
upto 96 hours rate
Beyond 96 hours Six times of
Base rate
known as
“Penal
Demurrage

Rate”

All other extant guidelines vide Corrigendum No.32 of Rates Master
Circular/Demurrage-Wharfage- Waiver/2016/0 hold good.

Beyond 6 hours
upto 12 hours
Beyond 12 hours
upto 24 hours

Base rate + 50%
upto 48 hours

Beyond 48 hours

upto 72 hours

Beyond 72 hours Thrice of Base rate

Base rate + 25%

In case excessive congestion takes place at
any terminal/steel plant,
PCCM/PCOM/DRM can_ increase the
demurrage rates, even at progressively
increasing rate, subject to maximum of six
times of the prevalent base rate. This penal
demurrage rates should be implemented
only after giving wide publicity(including
through SMS/email) and due notice at
terminal of 24 hours and should be
applicable for the notified period.

The rates can be increased by say, 2 times
or 3 times or so on, and not necessarily six
times at one go in all cases. In fact,
Railway may decide to levy variable rates
like 2 times for first three hours detention,
3 times for next twelve hours detentions
and so on and so forth. Railway must
judiciously evaluate the situation and the
rates should be increased on merit to the
extent considered justified. Levy of six
times rate should be resorted only when
the situation becomes very alarming.

Room No.455, Rail Bhavan, New Delhi-110001

A 7 |

Corrigendum No.56 of Rates Master Circular/Demurrage-Wharfage-Waiver/2016/0

Further to state that guidelines for waiver of Demurrage will continue to be applicable as
per existing SOP. In the context of waiver, Para 2.11 of Corrigendum No.32 of Rates
Master Circular/Demurrage-Wharfage-Waiver/2016/0 is reiterated which states that
application of waiver of Demurrage shall be entertained on

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