Headquarters
The Energy and Resources Institute (TERI)
Darbari Seth Block, Core 6C,
India Habitat Centre, Lodhi Road,
New Delhi - 110 003, India
One of the key irritants for the customers moving their cargo by rail is the demurrage charge imposed by the Indian Railways (IR). Demurrage is the penalty levied on the user when the free time for loading/unloading goods from the rake has expired, causing detention at the terminal. At the time of arrival of the rake at the destination station, the consignees must pay the freight and other miscellaneous charges as per the Railway Receipt. However, demurrage charge is imposed to ensure rakes are released quickly after loading/unloading within a reasonable allowed time.