JethroB
Veteran Member
- Joined
- May 19, 2020
- Messages
- 2,023
- Location
- Really Deep Southeast
- Tractor
- Kubota L5460 HSTC Cab, MF 135 Diesel
An older coworker told of how feed ingredients (corn, soybean meal, etc.) shipped by rail were once released to the buyer. The railroad would notify the feed mill manager that, say, 15 hopper cars of corn had arrived at the nearby rail yard. The mill manager would then take a company check to the RR’s local bank where he would exchange the check for the bill of ladings. Only then would the RR release and deliver the 15 cars the last few miles to the mill.
Another payment method was 90% advances. When product (corn, soy meal, etc.) was shipped by rail the buyer would be billed for 90% of the estimated weight & value. The balance was due on delivery and after certified rail weights were obtained. Pre-internet banking days. A pain to reconcile.
Rail cars would get lost in the system on the way to the buyer. It could take days or weeks to find them. Sometimes our mill manager would go looking for them at the nearby switch yard. Payment wasn’t due until all cars in the contract were delivered. Free money in the meantime.
An empty grain barge is one huge floating hole on the water.
It was interesting to see a Bobcat lowered into a nearly empty barge to push the remaining product to the swinging grain leg.
And yeah, I was a bean counter. I learned of the term demurrage. Folks would get a butt chewing when it occurred.
Another payment method was 90% advances. When product (corn, soy meal, etc.) was shipped by rail the buyer would be billed for 90% of the estimated weight & value. The balance was due on delivery and after certified rail weights were obtained. Pre-internet banking days. A pain to reconcile.
Rail cars would get lost in the system on the way to the buyer. It could take days or weeks to find them. Sometimes our mill manager would go looking for them at the nearby switch yard. Payment wasn’t due until all cars in the contract were delivered. Free money in the meantime.
An empty grain barge is one huge floating hole on the water.
And yeah, I was a bean counter. I learned of the term demurrage. Folks would get a butt chewing when it occurred.
Last edited: