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Tariff 6 - Private equipment

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​​​Tariff 6 - Private equipment rules on CP​​​Effective May 1, 2018

​​​Tariff 6 - Private equipment rules on CP​​​Expires April 30, 2018

Inside the private equipment supplemental services guide

  • Definitions
  • Private railcars require approval
  • Private containers must meet industry standards
  • Private equipment with hazardous commodities
  • Private equipment terms
  • Railcar mileage equalization

Related tariffs

FAQs about this tariff

What is the purpose of Tariff 6?

The purpose of this tariff is to consolidate and simplify the various additional rules, terms, and fees specific to shipping using private equipment on CP.

What is railcar mileage equalization?

Mileage Equalization, historically, was put in place to balance loaded and empty mileage movements of railcars or, more specifically, the miles customers pay CP to move the car vs. the "return miles", which are included in the loaded movement price. There are 2 programs in place, with each being calculated separately. The first is CP's program that applies to private cars in Canada, and the second is the US industry program that applies to tank cars in the US.

What can I do to minimize or eliminate a mileage equalization position at the end of the year?

Mileage equalization fees are charged to encourage efficient movement of empty equipment. Some tips for being as efficient as possible include:

  • Using the same railway for both loaded movements and empty returns
  • Make use of reverse routings, avoid diversions, and consider distance to storage and repair facilities
  • Be conscious of the annualized program calculation – weigh the benefit of returning your empty car to you within the calendar year against the potential costs 

Who would be invoiced for the shipments not covered by mileage equalization?

Just as is the case for every other shipment, when a shipment is not covered under the Mileage Equalization program, full shipping instructions (e.g. EDI 404) including the shipper, consignee, and payer of freight or "bill-to" party must be specified. The party specified as the payer of freight on the shipping instructions will be invoiced, just as is the case for every other shipment. Should any shipments not be properly billed, the car owner may be involved in properly directing the invoice for the applicable freight charges.

How much are the freight charges for moves not covered by mileage equalization?

Just as is the case for every other shipment, please speak with your account manager to set-up a quote or use the applicable CP freight price tariff (e.g. CP tariff 4000).