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What charges are new?
There are no new charges under this tariff, only simplification of language associated with existing terms and charges. The level of charges remains unchanged with the exception of exceeding your mileage allowance.
What happens to tariff 6544?
CP's old tariff 6544 is being retired as it was dozens of pages long as well as being difficult to read and understand. Railcar Mileage Allowance, or "empty mileage allowance" rules and charges have been simplified and consolidated in one page within the new Tariff 6.
What is Railcar Mileage Equalization?
Historically, Mileage Equalization was put in place to balance the loaded and empty mileage movement of railcars, or more specifically the miles customers pay CP to move the car vs. the "return miles" that are included in the loaded movement price. There are 2 programs in place, the first is CP's program which applies to tank cars and hopper cars in Canada, and the second is the US industry program which applies to tank cars in the US, and each program is calculated separately.
What can I do to minimize or eliminate a mileage equalization position at the end of the year?
Mileage equalization fees are charged to encourage efficient movement of empty equipment. Some tips for being as efficient as possible include:
- Using the same railway for both loaded movement and empty return
- Make use of reverse routings, avoid diversions, and consider distance to storage and repair facilities
- Be conscious of the annualized program calculation – weigh the benefit of returning your empty car to you within the calendar year against the potential costs
What has changed with Mileage Equalization?
Historically, Mileage Equalization was, in some cases, provided for shipments preceded or followed by a loaded shipment. For clarity, simplicity of administration, and alignment with industry practice, only shipments immediately preceded by a loaded move will be eligible for Mileage Equalization. Also, the price per mile for exceeding the allowed revenue to non-revenue miles has increased to $1.15 per mile.
Who would be invoiced for the shipments not covered by mileage equalization?
Just as is the case for every other shipment, when a shipment is not covered under the Mileage Equalization program, full shipping instructions (e.g. EDI 404) including the shipper, consignee, and payer of freight or "bill-to" party must be specified. The party specified as the payer of freight on the shipping instructions will be invoiced, just as is the case for every other shipment. Should any shipments not be properly billed, the car owner may be invlolved in properly directing the invoice for the applicable freight charges.
How much are the freight charges for moves not covered by mileage equalization?
Just as is the case for every other shipment, please speak with your account manager to set-up a quote, or use the applicable CP freight price tariff (e.g. CP tariff 4000).
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