Q: Why is Canadian Pacific implementing an interest charge on invoices that are past credit terms?

A: To encourage payment within specified credit terms.

Q: What types of invoices is interest applied to?

A: Currently, interest charges are applied to freight invoices as well as supplemental service charges including demurrage and storage that are beyond specified credit terms.

Q: How will customers be invoiced for interest charges?

A: Customers will be billed once per month for all open invoices that are past due as well as any closed invoices from the previous month that were paid past their specified credit terms.  Invoices will be in a summary format, outlining the interest charge per past due invoice.

Q: How is interest calculated?

A: The Interest charge will be assessed at an annual rate of 12% prorated on a daily basis for each day the invoice is/was past due (0.0329% per day). The date an invoice is due is calculated as invoice date plus credit terms. The days past due will be calculated as due date minus the date funds were received by Canadian Pacific.

• click here to view sample payment situations and applicable interest

Q: If a freight bill is being disputed, is an interest charge assessed?

A: When a customer notifies CP, within credit terms, that they are disputing an invoice, that invoice will be placed into a disputed status, which is not subject to the interest charge.  If the disputed invoice is deemed accurate, the dispute status will be removed and interest charges re-instated.

Q: If a customer has questions regarding interest charges, whom should they contact?

A: To discuss your contract, including governing tariffs and credit terms, please contact your Account Manager.  To dispute a freight, supplemental, demurrage or storage invoice, please contact the number listed on the invoice or indicate your intentions to dispute the invoice in MyAccount within the credit term period.  For specific questions regarding an interest charge, please contact our Interest Invoice Specialist at 1-877-474-5008 or CSF_Interest@cpr.ca.