Implementing Policy and Operational Changes to Increase Capacity

Date
Apr 9, 2021

As we continue to support historically strong intermodal demand, BNSF is taking necessary steps to ensure we have additional capacity. Our ability to move more of your freight than ever before, while providing the high level of service you expect from us, requires increased collaboration in this challenging environment.

In response, BNSF is implementing several policy and operational changes to provide both the capacity needed for current demand and the opportunity to handle additional growth. These initiatives, as outlined below, are consistent with our efforts on driving greater productivity and efficiency at intermodal hubs.

Adjusted Operations at Los Angeles (Hobart) and Logistics Park Chicago
Effective Monday, April 26, 2021, BNSF will be implementing day-of-week in-gate windows at Los Angeles (Hobart) and Logistics Park Chicago for freight waybilled to certain destination markets. With the introduction of these windows as well as some schedule adjustments, we expect to improve throughput and alleviate congestion at these busy facilities.

For a list of markets and in-gate windows, click here. Customers may only in-gate units to those markets listed on the day of week indicated. Some customers may also see adjusted operations beyond those listed.

Chicago Interchange Adjustment
Effective Monday, April 26, 2021, BNSF will only accept steel-wheel interchange for freight received from Norfolk Southern at Chicago for the following Pacific Southwest markets listed below:

• Los Angeles (Hobart)
• Oakland International Gateway
• Port of Los Angeles - Fenix Marine Terminal
• Port of Long Beach - LBCT Terminal
• Port of Long Beach - PCT Terminal

This change will generate greater service efficiency involving westbound freight by reducing intermediate handling in-route and improving cycle times. In addition, BNSF will consider additional steel-wheel interchange options as necessary based on density and customer demand.

New Off-site Dray Program
Effective Monday, April 26, 2021, BNSF will also implement an off-site dray program to reduce the impact of long-dwelling International units at several BNSF intermodal facilities. This program will begin at our Alliance, TX intermodal hub, and shortly thereafter at Logistics Park Chicago and the Memphis Intermodal Facility. Additional hubs may be added later.

At BNSF hubs participating in this program, BNSF may coordinate the transfer of excessively dwelling International units from the BNSF main yard to designated, nearby yard locations. Units will remain at these yards until they are out-gated for local delivery. Units moved from the main yard as part of this program will be assessed a reduced storage charge of $100 a day while they remain on the off-site location. This reduced charge will begin on the first 00:01 after off-site transfer. Units moved to these new lot locations will remain visible through the RailPASS application.

As a reminder, storage information, including the last free day, is available via BNSF’s web tools, including Track Your Shipment, Display Intermodal Lot Location, RailPASS and the At Destination widget. BNSF Intermodal customers with a BNSF.com user ID can access these tools by clicking on the Dashboard tab at the top of the BNSF.com Customer Portal.

More specific information on this BNSF off-site dray program will be provided in a separate communication soon.

Storage Policy Changes
Effective Monday, June 7, 2021, BNSF will make the following adjustments to the storage policy rules affecting both intermodal rail shipments and private chassis held on BNSF property:

Intermodal Shipments
• At Group 1 and Group 2 facilities, the storage charge for all equipment, when applicable free time expires, will be $150 per day for days one and two, and $225 per day for day three and each subsequent day. In addition, for international shipments, free time will begin at 12:01 following the day of notification, regardless of when notification occurs.

• For shipments in which BNSF will perform drayage operations (service code ending in 7), BNSF will begin to notify shippers when delivery has been rejected, denied or fails to deliver through no fault of BNSF. Following this notification, the unit will be subject to the free time and storage charges as outlined in Item 37 of BNSF Rules and Policy Guide.

• In addition, BNSF will provide a one-day storage credit for any unit out-gated from a BNSF intermodal facility observed as a Holiday for storage calculations. This credit will go to the party who pays or guarantees storage and may be applied to any pending or future intermodal storage.

Private Chassis
• BNSF will begin to assess a $100 per-day penalty for any private chassis that dwells on a BNSF intermodal facility for greater than 24 hours after notification of its availability for removal.

These changes will be reflected in Item 15, Item 37, Item 38 and Appendix F of the BNSF Intermodal Rule and Policy Guide (R&PG) prior to implementation date.

We understand that adapting to some of these changes may be difficult, but we believe that they are necessary to ensure we remain ready and able to support your supply chain. For any additional information and questions, please contact your BNSF marketing representative.

As always, your business is important to us. Thank you for choosing BNSF as your transportation provider.