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Freight Policy

Details of freight policy measures

To promote economic activities in the country during the Covid-19 pandemic, Indian Railways has taken several freight policy measures. More relaxations have been provided to the customers by a slew of incentives announced by Indian Railways. These incentives are expected to boost the economy of the country. Details of the initiatives duly referring circular/policy letter are given below. For details of the initiatives, customers may visit the traffic commercial directorate at Indian Railways website (www.indianrailways.gov.in). Customers may get in touch with Sr. Divisional Commercial Manager at division level or Chief Commercial Manager (FM) at zonal railway level for any freight traffic-related query. Customers may also visit the website of FOIS (www.fois.indianrail.gov.in) to know more about freight traffic and policies.

A.Freight Incentive Schemes:

  • Automatic freight rebate scheme for traffic loaded in Traditional Empty Flow Directions (TEFD) under which discounted freight is charged at Class LR1/Class 100/Class 110 for trainload/wagon load respectively) if traffic is booked in notified empty flow directions,discount is granted through the system. Terms & conditions as per the circular apply.

    (Rates Circular No. 8 of 2020 and its corrigendum No.1 dated 30.06.2020)

  • Long Term Traffic Contract (LTTC) is a policy which provides freight stability to its customer in the current year of the agreement along with the rebate in freight based on incremental growth in Gross Freight Revenue (GFR). Rebate is also available for the retention of GFR in each year of the agreement period.

    (Rates Circular No.14 of 2017)

  • Busy season charge which was levied during busy season 15% on all goods traffic has been withdrawn from the date 01.10.2019 for all traffic; except iron,ore and POL (Petroleum Oil and Lubricants) traffic.

    (Corrigendum No.1 dated 12.09.2019 to Rates Master Circular/Dynamic Pricing Policy/2015/0)

  • Round Trip Tariff (RTT) policy has been implemented from the date 01.07.2020. Discount is granted to traffic if booked in the return direction, by way of charging the return traffic at lower of the two classes.

    (Rates Circular No.11 of 2020)

  • Incentive to fly ash: 40% discount in freight is granted to fly ash traffic booked in bagged condition or bulk/loose condition when loaded in open stock. If it is loaded in bagged condition, then flat wagons are also granted 40% concession; and covered wagons are charged at Class LR1.

    (Rates Circular No.09 of 2020 and its corrigendum No.1 dated 03.08.2020)

  • Short lead concession has been re-introduced from the date 01.07.2020 under which discount in freight at the rate of 50%, 25% and 10% is granted to the traffic booked up to 0-50KM, 51-75KM and 76-90 KM respectively except Coal & Coke and Iron ore traffic. Further, Zonal Railways have been empowered to get into long term contracts with customers for short lead traffic.

    (Rates Circular No.16 of 2020 and its corrigendum No.1 dated 05.08.2020)

  • Concession on long lead traffic has been introduced from the date 01.07.2020 for Coal & Coke, Iron ore and Iron & Steel traffic under which discount in freight is granted; 20% to Coal & Coke for distance >1400KM, 20% to Iron & Steel for distance >1600KM; and 15% for distance >700KM and 20% for distance >1500 Km for Iron ore.

    (Rates Circular No.15 of 2020)

  • Free time relaxation for covered wagons: Zonal Railways are empowered to relax the free time up to double of normal free time or non-levy of demurrage/wharfage in case of covered stock during lean season end up to the date 30.09.2020.

    (Board’s letter No.TC-I/2019/201/6 dated 27.07.2020)

  • Permission to accept road weighbridge weighment to certain goods sheds of SCR (South Central Railway)for loading of Granite- all documents and data to be captured in TMS (Transportation Management System).

    (Board’s letter No.TC-I/2020/109/SCR/Granite dated 30.07.2020)

  • Terminal access charge concession of 50% has been granted on container traffic handled at Group-III CRTs.

    (Corrigendum No.37 dated 14.07.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • A concession of 5% on loaded containers has been permitted with effect from the date 04.08.2020 to the date 30.04.2021.

    (Corrigendum No.7 dated 03.08.2020 of Rates Circular No.20 of 2018)

  • Stabling charges for container traffic are not being levied from the date 18.05.2020 to the date 31.10.2020.

    (Board’s letter No.TC-I/2019/201/6 dated 03.08.2020)

  • A concession of 25% on empty containers and wagons has been given till the date 30.04.2021.

    (Corrigendum No.6 dated 01.05.2020 to Rates Circular No.20 of 2018)

  • Non-levy of terminal charges at unloading point for the traffic booked to and from notified alternate goods shed instead of busy goods shed. A terminal charge is otherwise levied at Rs.20 per tonne for goods sheds and PFTs (Private Freight Terminals).

    (Rates Circular No.14 of 2020)

  • Permissible carrying capacity for loading of pet coke in open wagons has been reduced, thereby, reducing the chargeable tonnage per wagon.

    (Corrigendum No.2 dated 25.06.2020 and Corrigendum No.4 dated 03.08.2020 to Rates Master Circular/PCC/CC+8 etc./2020/0)

  • Inventive scheme for loading of bagged consignment in open and flat wagons with a rebate of 20% on cement, China clay, chemical manure, food grain etc.; and a rebate of 30% on fly ash, urea. Besides large size bags, up to 2.5 tons have been permitted on open wagons.

    (Rates Circular No.27 of 2016 and its corrigendum No.3 dated 03.10.2019)

B. Transportation product

Indian Railway has encouraged full rake load traffic to promote the efficiency of operations and economy of scale. The standard composition of various types of wagons is laid down in RMC/2020 for block rake/mini rake/two-point rake etc. However, certain transportation products have been designed for the use of less than full train load traffic, which largely permits booking of piecemeal traffic at trainload rates subject to certain terms and conditions. Details of which are also laid down in the circular.

Recent relaxations granted in conditions governing these transportation products are as below:

  • Minimum number of wagons for availing trainload benefit for a coveredbogiewagontypewithairbrake and heavy load has been reduced from 58 wagons to 42 wagons w.e.f. the date 16.04.2020 till the date 30.09.2020.

    (Corrigendum No.30 dated 15.04.2020 and Corrigendum No.31 dated 19.05.2020 to Rates Master Circular/2016 on block rakes/mini rakes/two-point combination etc.)

  • Supplementary charge which was levied 5% on mini rake and two-point rake has been withdrawn from the date 01.10.2019.

    (Corrigendum No.22 dated 12.09.2019 and Corrigendum No.24 dated 20.09.2019 to Rates Master Circular/2016 dated 14.07.2016 on block rakes/mini rakes/two-point combination etc.)

  • Distance for the operation of mini rake (20 wagons) has been increased to 1500 KM.

    (Corrigendum No.30 dated 15.04.2020 to Rates Master Circular/2016 dated 14.07.2016 on block rakes/mini rakes/two-point combination etc.)

  • The distance between two-point/multi-point rake operation has been increased to 500 KM.

    (Corrigendum No.30 dated 15.04.2020 to Rates Master Circular/2016 dated 14.07.2016 on block rakes/mini rakes/two-point combination etc.)

  • Two-point booking of automobile traffic has been permitted in NMG, BCCNR and BCABM wagons.

    (Rates Circular No.19 of 2020)

C. Ease of doing business

  • Registration of demand for wagons electronically (e-RD) has been implemented to provide electronic demand note facility through FOIS website wherein; customer can register their demand for wagons electronically.This facility has been extended to Container traffic, Freight Forwarders, Iron & Steel, Iron Ore, Salt and Granite traffic.

    (Rates Master Circular/e-RD/2019/0 and its addendum dated 03.04.2020)

  • Electronic transmission of Railway receipt (eT-RR) has been launched to provide a paperless transaction system where Railway receipt is generated and transmitted electronically to the customer through FOIS. Even the delivery of goods is given through e-surrender of eT-RR. This facility has been extended to container traffic, freight forwarders, Iron & Steel, Iron Ore, Salt and Granite traffic.

    (Rates Master Circular/eT-RR/2019/0 and its addendum dated 03.04.2020)

  • Terminal Management System (TMS) provides system based preparation of Railway receipt for freight traffic. Two new features have been added to promote digital working (a) Preparation and submission of online goods balance sheet and (b) System generated money receipt for ancillary charges, e.g. Demurrage, Wharfage etc.

    (Board’s letters No.TC-I/2016/201/5 Pt. dated 29.11.2019 & dated 31.01.2020)

  • Online interface to freight customers through Freight Operation Information system(FOIS) to provide all requisite information, e.g. freight class and rate; the position of indent/demand for each station; outstanding indents, shortest/popular routes, terminal handling facilities; freight calculator; facility to track and trace rakes.

  • E-Drishtiupdation for goods sheds - Zonal Railways have been directed that details of facilities at all goods sheds and recent photographs (including night photographs for lighting levels) be uploaded on E-Drishti portal.

    (Board’s letter No.TC-I/2019/304/7 dated 20.03.2020)

  • Electronic payment system enables the collection of freight charges directly from the customer’s bank account. In recent past, Automobile Freight Train Operators (AFTOs) have been allowed a single agreement e-payment facility with base terminal Railway.

    (Corrigendum No.3 to Rates Master Circular/E-Payment/2014/1) and (Rates Master Circular/E-Payment/2019/0)

  • Freight advance scheme offers tariff certainty instead of freight advance. Under this scheme, Railway shall accord priority in the allocation of rakes within the same class to freight customers who have signed agreement. The scheme is open to customers who are e-payment customers for freight payment and have given minimum annual freight revenue of ₹ 500 Crores as freight payee in the previous calendar year.

    (Rates Circular No.1 of 2020)

D.Customer friendly rationalization of weighmentpolicy

Following policy, measures have been taken to lower operational time and improve fluidity;

  • In case of variation between two weighment results of a rake, the weight of the second weighment will be the chargeable weight and not the higher of the two.

    (Paragraph 2.2 of Rates Master Circular/Weighment/2019/0)

  • On detection of overloading in a rake, if load adjustment is not feasible at the originating point, then it may be permitted at a nearby location and transit time from weighment point to load adjustment point for levy of detention charge has been capped to a maximum of two hours plus an actual duration of load adjustment.

    (Paragraph 4.3 of Rates Master Circular/Weighment/2019/0)

  • DRMs (Divisional Railway Managers)vested with full powers to permit loading if a weighbridge gets out of order for three months.

    (Paragraph 2.8 of Rates Master Circular/Provision of Weighbridge/2019/0)

  • Zonal Railways empowered to permit installation of Preweighbin or Weightometer for weighment of goods traffic in private sidings.

    (Paragraph 5.0 of Rates Master Circular/Provision of Weighbridge/2019/0)

  • Exemption from mandatory weighment in case of loading of standard bags of uniform size in a container, low-density commodities like pet coke, met coke, chuni and De-oiled cake.

    (Paragraph 3.0 of Rates Master Circular/Weighment/2019/0)

  • Exemption from mandatory weighment in case of import containerized traffic to eight container operators (CONCOR, GRFL, DLI, Adani, ICT&IPL, HTPL, IILPL and PMLPPL) based on the transmission of SMTP details from Custom server to FOIS via ED Further, Nepal bound containerized import traffic has also been exempted from mandatory weighment from the date 02.09.2019 based on custom document submitted by CONCOR.

    (Paragraph 3.3 of Rates Master Circular/Weighment/2019/0 and its addendum dated 02.09.2019)

  • Permission to accept road weighbridge weighment to certain goods sheds of SCR for loading of Granite; all documents and data to be captured in TMS.

    (Board’s letter No.TC-I/2020/109/SCR/Granite dated 30.07.2020)

  • GMs gave the target for the integration of all weighbridges with FOIS by the date 22.08.2020.

    (Board’s letter No.TC-I/2019/108/1 dated 27.07.2020)

E.Encouraging container traffic

Relaxation in haulage charge

  • To promote containerizations following measures have been taken, ninety additional commodities have been de-notified and brought under haulage charge per TEU rates(Twenty Foot Equivalent Unit). Out of 641 commodities notified in goods tariff, 507 commodities are allowed to move in containers at FAK (Freight of all kinds)and 38 commodities at Container Class Rate (by applying 15% concession on applicable class rate).

    (Corrigendum No. 24 dated13.05.2019, Corrigendum No. 25 dated31.05.2019 & Corrigendum No. 28 dated. 22.07.2019 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Chemical Gypsum, a restricted commodity, has been allowed to move in containers at CCR, valid up to the date 20.10.2020.

    (Corrigendum No.32 dated 17.04.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Charging Kota Stone and Toluene at Haulage Charge per TEU rates extended till further advice.

    (Corrigendum No. 33 dated. 20.04.2020 & Corrigendum No. 36 dated 13.07.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Charging of CR Coils by applying 20% concession on applicable class rate extended till further advice.

    (Corrigendum No.34 dated 30.04.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Round trip based charging implemented to provide an economical and reliable alternative for ultra-short lead (up to 50Kms) container traffic which is moving at Haulage Charge per TEU rates, valid up to the date 14.09.2020.

    (Corrigendum No.30 dated 06.09.2019 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • New delivery model of double stack dwarf container to be charged by applying a 17% concession on haulage charge per TEU rate extended up to the date 31.03.2021.

    (Corrigendum to Rates Circular No.22 of 2017 dated 03.03.2020)

  • An innovative business decision for movement of empty containers and empty flat wagon for private container rakes at a discount of 25%, valid up to the date 30.04.2021.

    (Corrigendum No.6 to Rates Circular No.20 of 2018 dated 01.05.2020)

  • Discount of 5% haulage charge per TEU rates on loaded containers from the date 04.08.2020 to the date 30.04.2021.

    (Corrigendum 07 to Rates Circular No.20 of 2018 dated 03.08.2020)

Liberalization in usage of Railway owned terminals

  • Policy for the operation of container trains in railway terminals by notifying as Container Rail Terminal (CRT) extended up to the date 31.03.2021.

    (Rates Circular No. 06 of 2019)

  • Methodology for levying of terminal access charge from 1.5 times to one time for double operation (e. unloading followed by loading) extended till further advice.

    (Corrigendum No.27 dated 08.07.2019 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Rate of terminal access charge reduced in case of Group-III CRT to be levied 50% of the base rate.

    (Corrigendum No.37 dated 14.07.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Benefit of night incentive at par with goods traffic extended to container traffic handled at CRT.

    (Corrigendum No.26 dated 26.06.2019 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Railways are empowered to permit advance stacking permission at Group-III CRTs for 24 hours free of charge and, after that, on levy of charge, 20% of the prevailing rate of ground usage charge up to five days only. These guidelines are valid from the date 09.03.2020 up to the date 08.03.2021.

    (Corrigendum No.31 dated 09.03.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Liberalization in the guidelines for permitting lift on lift off at Group-I and II CRTs by removing the condition of seven rakes per handling line per month, valid up to the date 17.12.2020.

    (Corrigendum No.35 dated 17.06.2020 to Rates Master Circular/CRT-CCR-Hub&Spoke/2015/0)

  • Stabling charge on container traffic not to be levied on container traffic during the date18.05.2020 to the date 31.10.2020.

    (Board’s letter No.TC-I/2019/201/6 dated 03.08.2020)

F. Measures taken because of Covid Pandemic

Exemption from levy of ancillary charges namely Demurrage, Wharfage, Stacking, Stabling, Detention and Ground Usage charges since the date 22.03.2020 up the date 17.05.2020. Post which, these charges were levied with relaxation by doubling the appropriate free time for loading/unloading up to the date 31.05.2020. Further, Railways continue to exercise their powers for waiver of these charges as per prevailing local conditions. To provide relief to customers loading goods traffic in case of covered stock, Railways are empowered to relax the free time up to double of normal free time and/or non-levy of demurrage/wharfage during lean season end. up to the date 30.09.2020.

(Board’s letters No.TC-I/2019/201/2 dated 15.05.2020 and No.TC-I/2019/201/6 dated 27.07.2020)

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