How Railcar Openers Can Help Reduce Demurrage

June 4, 2019

Reduce demurrage costs by using railcar openers designed to assist operators with a safer and more efficient unloading process.

What is Demurrage?

Railcar owners are typically allotted a predetermined number of ‘free’ days to load and unload their railcars. When railcars are left in the railyard waiting to be loaded or unloaded past what the contract allows, demurrage fees or charges are applied.

Several Class I railroads have increased demurrage rates over the years, pushing the average daily rate as high as $150 per railcar per day. The purpose of demurrage is to encourage a faster and more efficient railcar unloading process, otherwise railcars are detained, and the fees add up.

Tips to Reduce Demurrage

In some cases, companies can decrease demurrage simply by further educating themselves on the rules, regulations, and expectations of the railyard. Depending on the nature of the contract or how much product is moved during the year, some companies can even request additional days before demurrage fees are applied.

However, according to David Riddell with RSI Logistics, many companies still report their monthly demurrage costs at over $30,000. In order to cut down on these looming charges, companies actively seek solutions to increase unloading speed and efficiency without jeopardizing the safety of their operators.

Railcar Openers Engineered for Efficiency

Operators often face damaged gates or doors, jams or shifted loads, and other unsafe conditions in their environment which significantly slows down the railcar unloading process. However, investing in the proper equipment can help improve safety and reduce the time required to load or unload cars, which in turn results in reduced demurrage costs.

The Arnold Company’s line of Door Demon® Hopper Gate Openers and Boxcar Openers not only work to prevent injuries, but also increase overall productivity.

Each unit custom-fits the needs of various environments. Multiple options exist for opening difficult boxcars, including the stand alone Blue Roller Boxcar Plug Door Opener and the forklift mounted Door Buster for both sliding doors and plug doors. When it comes to railcar hopper gate openers, Arnold Company has the widest line of Hopper Gate Openers in the industry and over 30 years of experience. We are ready to help your team increase safety and productivity.

Demurrage can be detrimental without a proactive approach to the railcar unloading process. Connect with an Arnold Company representative to find the solution your company needs to reduce demurrage by safely and efficiently unloading railcars.