06-24-2012, 03:38 AM
Do US railroads guarantee service levels to it's freight customers and do they have to pay penalties if they miss them?
I think customers may depend on delivery on time to get their production up and running without huge locals stocks to buffer delayed inbound freight (just in time manufacturing). A delayed freight train would be a little disaster if the productions runs out of supply. I assume the freight contracts will exclude liabilities for consequential damage but a steep penalty clause sounds reasonable to me.
I think customers may depend on delivery on time to get their production up and running without huge locals stocks to buffer delayed inbound freight (just in time manufacturing). A delayed freight train would be a little disaster if the productions runs out of supply. I assume the freight contracts will exclude liabilities for consequential damage but a steep penalty clause sounds reasonable to me.
Reinhard