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22 Dec 2015

Who Pays for Switching?

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This question can be a source of confusion for many in freight payables. Even if you know what a switch is, do you know if you should be paying for it? Is it just another supplemental bill or not?

There are many different kinds of switching and charges for each. The types of switching include intraplant, intermediate, inter-terminal, and reciprocal. So, how do you verify a switching charge? To determine the correct charge for a reciprocal switch that is annotated on your freight invoice, you must go to the switch tariff of the railroad that is actually performing the service. However, also read the provisions of the invoicing carrier’s tariff and their rules to ensure you utilize the maximum absorption. Furthermore, what happens if the carrier has a joint facility service agreement with another carrier, or if the industry is closed to switching? These kinds of questions are indicative of the many scenarios that may arise during the course of a freight audit. Our auditors are trained to handle them all. Let AMTR review your freight and suggest ways to save you money.

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