Item 1: Rules And Policies Guide Application - BNSF Railway

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BNSF INTERMODAL RULES AND POLICIES GUIDEUpdated: January 22, 2022This is the current BNSF Intermodal Rules and Policies Guide (R&PG). It became effective July 1, 2008and subsequent changes are noted in the Changes chapter. This R&PG replaces the previous BNSFIntermodal Rules and Policies Guide dated May 2, 2005, except as specifically noted.The R&PG is available at http://www.bnsf.com. Any changes to this R&PG will be posted on the Web.Issued by BNSF Railway Company.2BNSF Intermodal Rules and Policies GuideUpdated: See Changes

TABLE OF CONTENTSBNSF Intermodal ProcessSignTransportationContractProper LoadingRail TransitEFTAuthorizationEstablish CreditReceive Rates(Price Authorities)Complete Shipping InstructionsOffer & AcceptanceNotification(Storage Clock Starts)DestinationOut-Gate3BNSF Intermodal Rules and Policies GuideUpdated: See Changes

TABLE OF CONTENTSGENERAL APPLICATION . 6ITEM 1: RULES AND POLICIES GUIDE APPLICATION . 6CREDIT AND COLLECTIONS . 7ITEM 2: CREDIT AND COLLECTIONS . 7ITEM 3: PRICE AUTHORITIES APPLICATION . 8ITEM 4: SURCHARGES AND SPECIAL ASSESSMENTS . 10ITEM 5: ACCESSORIAL SERVICES . 11SHIPPING INSTRUCTIONS . 12ITEM 6: COMPLETE OFFER AND ACCEPTANCE . 12ITEM 7: SHIPPING INSTRUCTIONS. 12SERVICE . 17ITEM 8: INTERMODAL SERVICE . 17EQUIPMENT . 18ITEM 9: SHIPPER LOADING AND UNLOADING EQUIPMENT . 18ITEM 10: EQUIPMENT SPECIFICATIONS. 19ITEM 11: DRIVER REGISTRATION (AND UIIA TRUCKER INTERCHANGE AGREEMENT) . 20ITEM 12: PRIVATE EQUIPMENT INSURANCE . 21ITEM 13: EQUIPMENT WEIGHT . 23ITEM 14: LIFT PROVISIONS (FLIPS). 24ITEM 15: FURNISHING CHASSIS . 25ITEM 16: TEMPERATURE-CONTROLLED EQUIPMENT . 26ITEM 17: PORTABLE TANK CONTAINERS . 27ITEM 18: BUNDLED EQUIPMENT . 28ITEM 19: BULK BLADDER SHIPMENTS (FLEXI-TANKS) . 28ITEM 20: ON-DOCK FACILITIES . 29ITEM 21: OVERSIZED SHIPMENTS . 30ITEM 22: RAIL-CONTROLLED EQUIPMENT . 31ITEM 23: SHIPMENT ADJUSTMENTS (DISTRESSED SHIPMENTS) . 31ITEM 24: EQUIPMENT INSPECTIONS . 32LIABILITY . 35ITEM 25: SHIPPER GENERAL LIABILITY. 35ITEM 26: BNSF GENERAL LIABILITY. 37ITEM 27: GENERAL CARGO AND EQUIPMENT LIABILITY . 38ITEM 28: CARGO LIABILITY AND CLAIMS. 38ITEM 29: EQUIPMENT LIABILITY AND CLAIMS. 42ITEM 30: 49 USC 11706 LIABILITY TERMS. 44ITEM 31: REJECTION RIGHTS . 45ITEM 32: GOVERNING LAW, ARBITRATION, AND STRIKE PROVISIONS . 45ITEM 33: APPLICABLE INDUSTRY PUBLICATIONS . 46PROHIBITED, RESTRICTED, AND HAZARDOUS . 47ITEM 34: PROHIBITED SHIPMENTS . 47ITEM 35: RESTRICTED SHIPMENTS . 47ITEM 36: HAZARDOUS SHIPMENTS . 484BNSF Intermodal Rules and Policies GuideUpdated: See Changes

TABLE OF CONTENTSSTORAGE . 52ITEM 37: STORAGE (DWELL) . 52DRAYAGE . 58ITEM 38: DRAYAGE . 58ITEM 39: DRAYAGE SERVICES (DETENTION AND DRIVER STANDBY). 59DEFINITIONS. 61APPENDIX A: SHIPPING INSTRUCTIONS. 74APPENDIX B: SERVICE . 77APPENDIX C: EQUIPMENT DEPRECIATION (CLAIMS) . 78APPENDIX D: INDUSTRY PUBLICATIONS . 81APPENDIX E: PROHIBITED AND RESTRICTED SHIPMENTS . 82APPENDIX F: STORAGE . 88APPENDIX G: EQUIPMENT DETENTION (DRAYAGE) . 93APPENDIX H: CHARGES AND AMOUNTS . 95APPENDIX I: CONTACTS AND PHONE NUMBERS . 98ADVISORY . 100CHANGES . 1015BNSF Intermodal Rules and Policies GuideUpdated: See Changes

GENERAL APPLICATIONInstructions.) In addition, when tendering ashipment, the Shipper warrants it has authority toenter into this agreement and agrees to be boundby the terms of the BNSF Intermodal Rules andPolicies Guide. Any party acting on behalf of theShipper, the beneficial owner, or the receiver whoaccepts this shipment also agrees to be bound bythe terms of the BNSF Intermodal Rules andPolicies Guide. The Shipper is responsible forensuring that all such parties are given notice ofthe applicability of the BNSF Intermodal Rulesand Policies Guide.The effective price authority states thespecific service locations (facilities) available inaccordance with the BNSF Intermodal Rules andPolicies Guide. (See Item 3: Price AuthoritiesApplication and Item 8: Intermodal Service.)The Shipper must arrange for thetransportation of equipment beyond BNSF's raillines and BNSF is not party to or liable for anyportion of such arrangements. The interchangeof equipment between BNSF and another railroadmay be made only at normal Intermodalinterchange points, unless stated in the priceauthority. (See Item 3: Price AuthoritiesApplication.)Any specific provisions take precedence overgeneral provisions, unless otherwise stated.See the Definitions Chapter for explanationsof some terms used in this R&PG.GENERAL APPLICATIONITEM 1: RULES AND POLICIES GUIDEAPPLICATIONThe BNSF Intermodal Rules and Policies Guide(R&PG) specifies the rules governing Intermodaltransportation on BNSF Railway Company(referred to as BNSF) or transportation providedby BNSF as part of a continuous Intermodalmovement. The BNSF Intermodal Rules andPolicies Guide is subject to modification orcancellation at any time and without prior notice.In order to become an Intermodal Shipper onBNSF, requirements, including, but not limited to,establishing credit, arranging for EFT, and signinga BNSF Intermodal Transportation Contract, mustbe completed before an Intermodal shipment canbe tendered to BNSF. (See Item 2: Credit andCollections, and Item 3: Price AuthoritiesApplication.)The BNSF Intermodal Rules and PoliciesGuide in combination with a specific BNSF priceauthority (see Item 3: Price AuthoritiesApplication) constitutes an offer by BNSF toprovide certain exempt transportation services.A separate agreement is made each time ashipment is tendered to BNSF according to theoffer contained in the BNSF Intermodal Rules andPolicies Guide and the relevant price authority.(See Item 6: Complete Offer and Acceptance.)Prior to tendering an Intermodal shipment,proper and complete shipping instructions mustbe in BNSF’s system. (See Item 7: Shipping6BNSF Intermodal Rules and Policies GuideUpdated: See Changes

CREDIT AND COLLECTIONSTransfer (EFT). The Shipper will authorizeBNSF to originate electronic debit entries tothe Shipper's checking account and willauthorize the bank to debit the amount ofsuch entries from the Shipper's account withinseven (7) days of BNSF's invoice date.CREDIT AND COLLECTIONS2. In the event of an invoice error, BNSF willissue a balance due bill or refund. TheShipper must file for invoice errors(overcharges or refunds) within thirty-six (36)months of the shipment’s movement orwaybill date, and any incentive paymentswithin ninety (90) days at the end of theincentive period. (See the Invoice DisputesSection of this Item.)Cargo (freight) claims are addressed inSection 6 of this Item and are not consideredan overcharge or refund.ITEM 2: CREDIT AND COLLECTIONSBNSF's requirements regarding credit andcollections are defined below.3. If the Shipper's bank dishonors any electronicfunds transfer submitted by BNSF, theShipper will be given notice and the priceauthorities utilized may be terminated.BNSF CREDIT1. Credit must be established by the Shipperand approved by the BNSF Credit department(call 1-817-352-4194 or utilize the on-linecredit form dit-application/).4. In the event a Shipper is delinquent on anyoutstanding BNSF payments or charges,unless under dispute, BNSF reserves theright to withhold and/or deduct any refundsand/or incentive payments due to theShipper. Payments not made to BNSF withinthe applicable payment terms are considereddelinquent. (See the process for an invoicedispute in the Invoice Disputes Section of thisItem.)2. All payments (including, but not limited to,freight charges, accessorial service charges,surcharges, and other applicable charges)must be paid in U.S. funds by the Shipper inaccordance with BNSF credit terms orindividual contract terms. All charges will beassessed to the Shipper. Freight relatedcharges (including, but not limited to, freightcharges, surcharges, and incentive paymentsare assessed on the shipping instructionsdate. (See Item 3: Price AuthoritiesApplication and Item 4: Surcharges andSpecial Assessments.)5. In the event the Shipper fails to pay anyundisputed invoiced charges within the creditperiod and fails to provide adequatedocumentation to dispute the charges withinthe credit terms, BNSF will apply a financecharge on all delinquent invoices. Thefinance charge will be the highest rateallowed by law. (See the Invoice DisputesSection of this Item.)3. BNSF reserves the right, at its sole discretion,to cancel credit and require, including, but notlimited to, a surety bond, letter of credit, orother form of security.6. If filing a cargo (freight) or equipment claim,all outstanding payments or charges,including, but not limited to, the payments andcharges for the claimed cargo or equipment,are due according to standard paymentterms. If applicable, any reimbursement ofBNSF COLLECTION1. Payments for freight and other invoicedcharges must be made by Electronic Funds7BNSF Intermodal Rules and Policies GuideUpdated: See Changes

CREDIT AND COLLECTIONSpayments will be handled in the claimsprocess. (See Item 28: Cargo Liability andClaims, and Item 29: Equipment Liability andClaims.)(30) days after such amount becomes dueand payable. It is further expresslyunderstood that this Section is in addition toand does not displace any legal rights towhich BNSF may be entitled.7. In the event litigation becomes necessary tocollect unpaid freight and other invoicedcharges, the Shipper will also be responsiblefor all charges associated with the litigation,including, but not limited to, court costs,expenses, and attorney’s fees.11. BNSF reserves the right to change the creditterms, including, but not limited to, the right toincrease requirements for a surety bond,letter of credit, or other form of security in theevent that there is a substantial change in theShipper's ownership. A substantial change inthe Shipper's ownership will occur when morethan twenty-five percent (25%) of theShipper’s ownership interests will betransferred to the new owners.8. BNSF will not make a claim for payment offreight and other charges incurred againstany beneficial owner utilizing the Shipper'sservices where the beneficial owner hasmade payment for such charges to theShipper. If the beneficial owner has not madepayment for such services to the Shipper andthe Shipper has not made payment for suchservices to BNSF within thirty (30) days of theprovision of such services, then the Shippergrants BNSF the right to collect such chargesdirectly from the beneficial owner and off-setany amounts collected against the sumsowed the BNSF. The granting of the right topursue the collection of sums owed BNSF willnot, in any way, discharge or modify theShipper's obligations.INVOICE DISPUTESA Shipper contesting a charge as erroneous shallpay the amount the Shipper believes is correctand provide a written explanation attached to theinvoice. Shipper shall return the invoice andproposed corrections (to the stated address)within the BNSF credit period or applicablecontract terms, or file invoice disputeselectronically on secured http://www.bnsf.com.Finance charges will apply on non-disputeddelinquent invoices. (See the BNSF CollectionSection of this Item and Item 3: Price AuthoritiesApplication.)The Shipper and receiver accept liability forprice authority charges and any other applicablecharges jointly and severally by tendering theshipment and/or accepting delivery.9. The Shipper and BNSF agree that in theevent an order for relief is entered or aninvoluntary bankruptcy petition is filed againstthe Shipper under the United StatesBankruptcy Code, to the extent that paymentsdue from the beneficial owner(s) fortransportation services have not been madebefore the date of such filing, the Shippergrants BNSF the right to collect suchpayments directly from the beneficialowner(s) and off-set such amount against thesums owed BNSF by the Shipper.ITEM 3: PRICE AUTHORITIESAPPLICATIONPRICE AUTHORITY DEFINITIONA BNSF price authority states a rate or set ofrates for a particular Intermodal shipment. Theserates may be transmitted to the Shipper byprinted copy, electronic facsimile (fax), diskette,electronic methods, or the Web (posted onhttp://www.bnsf.com).In order to use a BNSF Intermodal priceauthority (either public or private), the Shippermust sign a BNSF Intermodal TransportationContract.10. With respect to any BNSF claim againstShipper, the Shipper grants BNSF a right tooff-set against any and all of the Shipper'sproperty in the possession or control ofBNSF, including, but not limited to, anyrefunds or deposits held by BNSF. The rightof offsetting granted in this Section will beeffective only with respect to any liquidatedamount that remains unpaid more than thirty8BNSF Intermodal Rules and Policies GuideUpdated: See Changes

CREDIT AND COLLECTIONSBNSF price authorities apply only to thestated origin and destination locations named inthe authority. All shipments are delivered only tothe Intermodal facilities stated on the priceauthority. Intermediate or rail stop-offs are notpermitted for Intermodal shipments.Transportation beyond any locations named inthe price authority is not the responsibility ofBNSF.A price authority does not constitute shippinginstructions. The price authority stated on theshipping instructions when the shipment istendered to BNSF determines the rate (freightcharge) and other applicable charges that areinvoiced and due. The shipping instructions allowa Shipper to tender a shipment using a priceauthority. (See Item 7: Shipping Instructions.)The Shipper is responsible for furnishing anddetermining the correct Intermodal price authorityand associated rate at the time the shipment istendered to BNSF. If an improper price authorityis furnished on the shipping instructions, a chargeof 500 will be assessed. (See Item 7: ShippingInstructions and Appendix H.)The stated price authority and associated ratemay not be changed after the shipment has beentendered to BNSF.Failure of the Shipper to furnish the correctprice authority will not relieve the Shipper from itsobligation to pay charges based upon the priceauthority in effect and on the shipping instructionswhen the shipment is tendered to BNSF.(See the Credit and Collections and GeneralApplication Chapters.)2. QuoteA special rate negotiated for a specificIntermodal shipment based on certain factors(such as Shipper, commodity, volume, actualorigin, actual destination, and equipment) andissued by a BNSF Marketing Representative.Any price authority quote will be immediatelyconfirmed in writing. In the event ofdisagreement concerning an oral quotation,the written confirmation will take precedence.3. Multi-party AgreementA contractual arrangement between any or allof these parties (BNSF, Shipper, beneficialowner, or Shipper's agents) established by aBNSF Marketing Representative. Only theprices or price authorities that refer to a multiparty agreement will apply. Multi-partyagreements include all transportation andprice contracts, tri-party agreements, andancillary agreements.4. Direct or InterlinePrice authorities (FAKs, quotes, or multi-partyagreements) state if the rates can be used fordirect (BNSF only) or interline (BNSF andother railroad(s)) transportation.BNSF will not accept coiled metal orscrap metal Intermodal shipments via steelwheel interchange with another railroad orfrom on-dock locations, regardless if stated ina price authority. (See Appendix E:Prohibited and Restricted Shipments.)BNSF will not provide cross-towntransfers or drayage of portable tankcontainer shipments, regardless if stated in aprice authority. (See Item 13: EquipmentWeight, Item 15: Furnishing Chassis, Item 17:Portable Tank Containers and Appendix Eand F.)Interline price authority rates are eitherjoint-line or Rule 11.PRICE AUTHORITY TYPESDescribed below are types of BNSF Intermodalprice authorities -- Freight All Kinds, Quote, Multiparty Agreement, Direct, and Interline.Regardless of price authority type, restrictedshipments require a special price authority. (SeeItem 35: Restricted Shipments and Appendix E.)Unless otherwise specified, these priceauthorities are not applicable for restrictedshipments.a. Joint-line (through rate)A joint-line price authority is one priceauthority that applies to the entiremovement from rail origin to raildestination on two or more railroads. Theprice authority indicates the interline routewith the applicable carriers, and the rateincludes all interchange charges unlessotherwise noted.1. Freight All Kind (FAK)General rates offered to various types ofcustomers (such as domestic, international,contract holders, or non-contract holders) fortransporting Intermodal shipments on BNSF.9BNSF Intermodal Rules and Policies GuideUpdated: See Changes

CREDIT AND COLLECTIONSShipping instructions for joint-lineshipments must be sent only to the origincarrier, who will forward the shippinginstructions to the other rail carriers in theroute.b. Rule 11A Rule 11 price authority or rate allowsshipments to be interchanged from onerailroad to another using each carrier'sspecific price authority. Thus, theShipper combines each railroad's priceauthority to create an interline movement.Shipping instructions for Rule 11shipments must be sent only to the origincarrier. The origin carrier forwards allshipping information to the other carriersin the route. Rule 11 must be indicatedon the original shipping instructions alongwith each price authority for the railcarriers involved in the movement. Eventhough all price authorities are stated onlyon the origin railroad's shippinginstructions, each railroad will invoice theShipper separately. In addition, theintermediate (cross-town) notify party(and phone number) and the final notifyparty (and phone number) must beidentified by the Shipper and are requiredon Rule 11 shipping instructions. (SeeItem 7: Shipping Instructions.)Cross-town transfers are not includedon Rule 11 shipments that originate onBNSF, regardless if the price authorityallows Rule 11. (See Item 15: FurnishingChassis and Appendix E and F.)For interline shipments, Rule 11 canonly be used if the price authorityspecifically states Rule 11 is applicable.If a Rule 11 notation is not on the priceauthority, the rate assessed will be apublished BNSF FAK joint-line rate ineffect at the time of shipment.c. Haulage or otherOther interline arrangements such asVoluntary Coordination Agreements(VCAs), haulage agreements, or trackagerights (alliances) are methods to marketand price on other railroads. Theseagreements typically show a BNSF route(with BNSF incurring the cross-town orinterchange costs, and the otherrailroad's charges).PRICE AUTHORITY MODIFICATIONSUnless a price authority specifically states that arate level or other term cannot be changed, BNSFreserves the right to modify any price authority atany time regardless of the expiration date shownon the price authority. Each price authority iseffective until expired, cancelled, or reissued by aBNSF Marketing Representative. In addition,BNSF reserves the right to adjust rates when theother carriers’ portions increase on associatedjoint-line rates.If a shipment is misdescribed on the shippinginstructions or other shipping documents, BNSFhas the right to revoke the price authority and/orthe BNSF transportation contract for that Shipper.(See Item 7: Shipping Instructions, Item 34:Prohibited Shipments, and Item 35: RestrictedShipments.)These price authority modification provisionsapply to all price authorities (including multi-partyagreements).(See Item 8: Intermodal Service.)ITEM 4: SURCHARGES AND SPECIALASSESSMENTSAll surcharges and special assessments will applyeven if there is an inconsistent or contraryprovision in a BNSF price authority, contract, oragreement (including all multi-party agreements).FUEL SURCHARGESAll BNSF Intermodal transportation services andshipments are subject to any fuel cost recoverysurcharge implemented by BNSF or imposed onBNSF.Any fuel surcharge that is levied can beviewed at secured http://www.bnsf.com or may beobtained from a BNSF Marketing Representative.OTHER SURCHARGESIn addition, BNSF may apply other types ofsurcharges (including, but not limited to,hazardous, household goods, peak season, dayof week and automobile surcharges) on alltransportation services and shipments providedby BNSF.10BNSF Intermodal Rules and Policies GuideUpdated: See Changes

CREDIT AND COLLECTIONSFor information regarding other surcharges,please contact a BNSF MarketingRepresentative.SPECIAL ASSESSMENTSBNSF may require the Shipper to pay any costs,expenses, charges, fees, taxes, tolls, duties,levies, usage fees, access fees, surcharges, andspecial charges that apply to the transport byBNSF on applicable shipments that are imposedby, but are not limited to, any port authority,federal, state, local, or government agency. Thisincludes, but is not limited to, ACTA, APHIS,COBRA, Port of Portland and Port of Tacomacharges.The Shipper is responsible for any charges,costs, expenses, duties, taxes, and fees that areassociated with a shipment's clearance at theborder and Customs' (or any government agency)inspections or examinations. In addition, theShipper is responsible for any charges resultingfrom the shipment being delayed, detained,moved, lifted, drayed, and stored at the border,an examination facility, or a BNSF facility. (SeeItem 5: Accessorial Services.)ITEM 5: ACCESSORIAL SERVICESAccessorial charges may include, but are notlimited to, charges for loading, unloading, chassisuse, storage, delivery, pick up, detention,repackage, inspection, overload, overweight,driver standby, and lift. The Shipper should referto applicable Items for stated charges or contact aBNSF Representative for any other accessorialservice charges.If the Shipper requests and submits a BNSFauthorization form for accessorial services, BNSFwill make a diligent effort to execute the request.The Shipper is responsible for any applicableaccessorial charges and associated federal,state, and local taxes, surcharges, or charges,regardless of BNSF obtaining an authorization.(See Item 2: Credit and Collections and asummary of charges in Appendix H: Charges andAmounts.)11BNSF Intermodal Rules and Policies GuideUpdated: See Changes

SHIPPING INSTRUCTIONSSHIPPING INSTRUCTIONSACCEPTANCE AND CONFIRMATIONBefore a Shipper tenders the equipment to aBNSF facility or before BNSF dispatches theequipment to obtain a shipment, the agreementmust be confirmed by sending BNSF completeshipping instructions (via EDI or BNSF’s ShippingInstructions Web application) for Intermodal(TOFC or COFC) service.(For explanation of price authority or multiparty agreements, see Item 3: Price AuthoritiesApplication. See requirements for the shippinginstructions in Item 7: Shipping Instructions.)ITEM 7: SHIPPING INSTRUCTIONSITEM 6: COMPLETE OFFER ANDACCEPTANCECOMPLETE OFFERThe complete offer to a Shipper consists of thisBNSF Intermodal Rules and Policies Guide andthe price authority in effect and stated on theshipping instructions at the time that completeshipping instructions are given to BNSF. Unlesscontained in one of the following, the completeoffer cannot be modified: Price authority issued in writing by BNSF tothe Shipper. Separate written multi-party agreementsigned by a BNSF Marketing Representative.Any notation on the shipping instructions directingtransportation by BNSF that is inconsistent with orattempts to change the terms of this offer: Will be interpreted as a notation made for theprivate benefit and information of a person orparty other than BNSF. Will not be a part of this offer and not bebinding on BNSF.ACCEPTANCEAcceptance by BNSF of a Shipper’s offer occurswhen BNSF accepts the equipment accompaniedby complete shipping instructions, whichreference a price authority or, when dispatchingempty equipment for BNSF origin drayage, afterreceiving complete shipping instructions. (SeeItem 7: Shipping Instructions.)Proper shipping instructions are necessary forBNSF to provide the correct transportationservices and to invoice the appropriate rate. TheShipper is responsible for providing complete andaccurate information on the shipping instructionsas stated within this BNSF Intermodal Rules andPolices Guide.SHIPPING INSTRUCTIONS INFORMATIONAll shipments must

BNSF Intermodal Rules and Policies Guide Updated: See Changes 2 BNSF INTERMODAL RULES AND POLICIES GUIDE Updated: January 22, 2022 This is the current BNSF Intermodal Rules and Policies Guide (R&PG).It became effective July 1, 2008