Navigating the Railroad Shutdown Request Process

Rail Education, Rail Rates and Logistics

Rail shipping logistics can be an intricate world, and especially when the flow of materials by rail is the lifeline for your plants, operations, and facilities. But what happens when this flow is disrupted by delays within your rail network, threatening to half production altogether? This is where the Railroad Shutdown Request is used. This request is used by shippers to communicate urgent needs to railroads when critical delays threaten operational continuity. In this blog, we’ll explore the significance of a Shutdown Request, outlining the what, why, when, and how. Then we’ll cover some best practices and considerations.

What is a Railroad Shutdown Request?

A Shutdown Request is submitted to the Railroad if production at your facilities is at risk of being stopped due to necessary product in railcars being delayed on the rail’s network. The request informs the railroad of the severity of your logistics challenge and how close you are to being forced to shut down your operations

Why File a Shutdown Request?

The significance of a Shutdown Request is to alert the railroad that you are at risk of a shut down. A facility will be considered at risk when the number of cars at your facility and/or in your pipeline will not sustain production past a given date.

Rail shutdowns carry substantial financial risks for both shippers and railroads, as halted production lines mean delayed operations and increased expenditures without the necessary inbound materials to continue. You file a Shutdown Request to communicate to your railroad the challenge you are facing if your shipments are not inbounded soon.

When to File a Shutdown Request?

Each railroad handles the timing of a Shutdown Request differently. Ensuring you know the specifics of your railroad before submitting a request is important.

For example, the CPKC railroad requires forms for a Shutdown to be submitted a minimum of 72 hours prior to the effective date and time of the shutdown. On the other hand, both the NS and BNSF railroads require you to first open a case with them, and they will advise if you the cars in question qualify for a Shutdown Case.

It is important to note that Shutdown Requests should not be opened simply to expedite transit of railcars. Cases should only be opened when cars are needed to keep operations running or be forced to shut down. According to the NS, you can discern if a shutdown request is valid based on order history, transit time and current inventory on-hand. There are a limited number of rail cars the railroad can prioritize moving more quickly than the rest of the network and overpopulating the network with non-shutdown-related cars exacerbates the challenge.

A line of grey rail hopper cars passes over a road with a red railroad crossing sign.

Steps to File a Railroad Shutdown Request

However, if you have checked and found that a Shutdown Request is needed, you can follow the below steps to prepare and submit your request.

Step One: Preparation

First gather all necessary documentation and information related to the shutdown. The railroads will need to know the following required information:

  • Provide the name and phone number of a 24/7 point of contact at the plant.
  • Provide the date and time your plant will shut down/run out of stock if not serviced.
  • Provide the number of cars you need to continue production and the car numbers that are needed.

Step Two: Notification

Contact the railroad your needed railcars are being shipped on and inform them that you are at risk of a shutdown. From here, initiate the formal request process by opening a case. Provide the railroad with the information you gathered in step one.

In this step, ensure you are paying attention to any differences between the railroads. For instance, the CPKC and CN require specific forms on their websites to be filled out along with opening a case.

Step Three: Review

The railroad will review your shutdown request and you will wait for their result. All Shutdown Requests are vetted by the railroad before escalating to a Shutdown Case.

Step Four: Implementation

If your request is approved, the Railroad will work with your plant contact to establish when you will be serviced.

Railroad Shutdown Request Considerations

Most railroads will not approve a Shutdown Request if the delay was not caused by that railroad. For instance, if your facility is serviced by the BNSF, but the NS caused the delay for the railcars you need expedited, the BNSF will not approve your request.

However, if a railroad denies your Shutdown Request, you can still request escalate the cars internally via methods beyond the Shutdown Request. Remember each railroad handles their Shutdown Requests somewhat differently, and there are sometimes solutions if the request is denied.

Some Railroads, like the CN for example, will not approve a Shutdown Request if the delay was caused by another Railroad; however, they will add the cars to a “HOT LIST” to protect the service moving them.

BNSF does not have a “HOT LIST”, however, if they deny your Shutdown Request, you can request that they escalate the case to a Network Manager. From there, the Network Manager will monitor your cars until delivery.

Additional Railroad Shutdown Request Resources:

No one wants to be placed into a situation where your only choice is to shut down if you do not get the shipments you need. Unfortunately, if your business operates within the logistics industry, there is a chance it might happen, and being prepared for that eventuality is far better than being underprepared. We at RSI Logistics know the power of being ready for challenges when they arise, and we want you to be as prepared as possible.

If you’re struggling with receiving your shipments on time, visibility on your rail logistics, or excessive fees and complicated rail shipping networks, we can help! Reach out with your challenge, and let’s find a solution together.