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Loading Origin GuaranteesLOGS Program DescriptionEffective - April 5, 2004
Program Overview
Securing a LOGS Permit
Ordering LOGS Equipment
Getting Your Freight Discount (where applicable)
Permit Changes/Transfers
MiscellaneousIntroductionWhat is the Loading Origin GuaranteeS program? The Loading Origin GuaranteeS (LOGS) program is a guaranteed equipment placement program for rail transportation of commodities shipped in certain BNSF controlled equipment types. LOGS is reciprocal: customers commit to BNSF (by purchasing a LOG during a Monday auction) to order and utilize BNSF equipment in the committed weekly quantities and BNSF commits to the customer a guarantee to fulfill that equipment order within specified time limits. A failure on either party's commitment to the other results in a penalties due the other. In some cases, as within the Public Rate Program, LOGS also offers a freight discount. "BNSF controlled" is defined as equipment owned by or leased to BNSF. Equipment types included in this program are currently plain boxcars, refrigerated boxcars, insulated boxcars, pulpboard boxcars, 60ft, 73ft, and 81ft centerbeam equipment, gondolas and bulkhead flats. Minimum weekly volume commitments are required. Currently they are 1 car per week for all equipment offered. Why did BNSF start the LOGS Program? Loading Origins GuaranteeS was designed to target our customers' top 2 areas of importance (as defined in the 1999 Ease of Doing Business Survey conducted by BNSF) equipment availability and consistency. LOGS is a GUARANTEED equipment supply and placement program between BNSF and its customers. The goal is better planning for both parties. BNSF has invited other railroads to participate on a joint-line basis via joint-line documents. Our objective is to offer a program encompassing any movement in North America.
The overriding objective is to give the customer a very high comfort level of car supply and want-date placement by a guaranteed placement program. The LOGS process will also be used to assist BNSF in fleet sizing. The LOGS program, in conjunction with a BNSF Public Price Program will allow rate transparency to the industry, where applicable. Is the LOGS program only for large shippers? No. LOGS are available to all shippers both large and small, any company willing to commit to the weekly minimums of the desired equipment types. (See "What is Loading Origins GuaranteeS Program?") Is LOGS mandatory, and are there other options? LOGS is NOT mandatory. As stated previously, the LOGS program provides an additional shipping option. The LOGS program provides an alternative for customers who need guaranteed car supply and are able to plan advanced shipping needs. Portions of our fleets offered in LOGS remain available through standard equipment ordering options. For some equipment types, SWAPS is another shipper option: BNSF shortline partners and private companies with their own centerbeam equipment may enroll their fleets into the BNSF LOGS program via a SWAPS process. What are the eligible equipment types, and what if I need more than one type? The LOGS program is currently offering BNSF controlled 60ft, 73ft, and 81ft centerbeams, refrigerated boxcars, plain boxcars, insulated boxcars, pulpboard boxcars, gondolas, and bulkhead flat cars for bid in LOGS auctions for guaranteed placement. "BNSF controlled" is defined as equipment owned by or leased to BNSF. Customers needing more than one of these equipment types should bid on each equipment type separately. Each equipment type will have a separate permit number assigned to it. Hence, separate orders will have to be placed using each permit number. How are cars allocated between LOGS shipments and non-LOGS shipments? The number of cars being offered is based on historical shipments calculated for each shipping region (stated above). Current marketing and car velocity information will then be considered to make a final determination of the number of cars to be offered. Cars offered and not sold in the LOGS program will be returned to non-LOGS general service. How does BNSF determine annual fleet size? BNSF's annual fleet size is determined by current and projected demand for freight equipment. Demand is derived from historical shipping data combined with available industry data and private forecasts along with origin and destination customer input. What is the purpose of the LOGS FAQs? The LOGS FAQs should be viewed as a helpful tool for understanding the LOGS program. The official rules for the program can be found in LOGS Rules Book, BNSF-7. We ask anyone having questions or comments about the program to please contact the LOGS Manager at 817-867-LOGS (5647). For further clarification of any point, please email logs.marketing@bnsf.com. Please use a left mouse click on any information underlined and in blue to link to more information. Securing a LOGS PermitHow do customers qualify to participate in LOGS? LOGS holders or LOGS participants must have established credit in good standing with BNSF click here to find out how to establish credit with BNSF. The reason established credit is required is because all LOGS are contracts between BNSF and LOGS holder for placement and future shipment on the BNSF. A LOGS holder is defined as a customer (i.e. company) that owns a LOG held in the customer's name. A LOGS participant is defined as either a LOGS holder or a customer who receives equipment obtained through authorized transfer of LOGS. How do participants bid in an auction? After establishing credit, customers must register as a LOGS BIDDER on the MyBNSF webpage. Once registered as a LOGS BIDDER, the LOGS BID FORMS are added to the customers user profile and these are used to submit LOGS bids during weekly LOGS auctions. (See "How does a customer submit a bid?".) To add the LOGS Bid Forms to a customer's existing user profile contact BNSF Electronic Commerce at 888-428-2673. Or, select "Request Access" after you have signed on to MyBNSF. If you do not have a user ID for access to MyBNSF Web applications click here for more information on registration.
What are the steps necessary to participate in a LOGS auction? A qualified customer desiring to bid on a LOG must 1) Register for LOGS bid forms on myBNSF.com 2) Review BNSF LOG offers 3) Submit a bid for desired LOG commitment and 4) If awarded a LOG, remit any premium due. When do LOGS auctions take place? BNSF will hold a LOGS auction every Monday at 10 am CST (8 am PST), excluding railroad holidays. The bidding will close at 4 PM CST (2 PM PST) on Monday (same day as offer). How does a customer submit a bid? Registered bidders will have the opportunity to bid via the BNSF e.Business page using the LOGS Bid Forms during weekly LOGS auctions. In case of technology failures, a bid may be submitted by faxing a LOGS Bid Fax Form to 817-234-LOG1 or by telephone by calling 817-867-LOGS. The following information will be asked of the telephone bidder:
What determines a winning LOGS bid? Priority will be given first to duration, i.e. longer time frame commitments, then the highest premium amount will receive the LOGS until all are sold. If tied bids exceed the number of cars available, the bidders are asked to re-bid. Example: How will customers know if they have secured a LOGS bid? By close of business CST on Tuesday, winning bidders will be notified via e-mail of the "Confirmation Award Statement" including a LOGS permit number. The customer's e-mail address from the profile information under My BNSF will be used to send e-mail notification to the customer. All bidders will be notified. Also, BNSF will publish the number of LOGS sold and the range of winning bids on this web site. Now that a customer has received a LOGS Confirmation Award Statement notification, what is the process from here? Step 1: To secure the LOG, any premium bid (above $0) is considered a prepayment and the lump-sum premium payment (example, $1 premium on one 25 car 4 week LOG would be-- $1 premium x 25 weekly cars x 4 # of weeks = $100) must be paid via wire transfer by close of business the two business days following winner's notification. Specific wire instructions will be provided with winner's e-mail notification.
Step 2: For ease of doing business, BNSF retains custody of customer LOGS in a paperless format. However, customers may request a written LOG certificate by submitting a written request to the address shown below. This is a free service. Manager, LOGS The purpose of a paperless LOG is to relieve customers of the administrative burden of a paper LOG. Equipment Ordering/Shipping ProcessHow do I order LOGS equipment? LOGS equipment requests should be placed via electronic Equipment Request on this web site. Once you have been awarded a LOG, you will need to have your Internet equipment request profiles updated to include LOGS-designated equipment types. (Electronic equipment Requests is a requirement for LOGS participation.) If your facility is not already registered for electronic Equipment Request, you can register on the BNSF Registration page. When do I order LOGS equipment? The deadline for ordering LOGS equipment is the Monday 4pm CST prior to the LOGS equipment "want week", where "want-week" is defined as Monday through Sunday. Example: equipment wanted for the second week in the month must be ordered by 4pm CST Monday prior to the want-week, in this case Monday of the first week of the month. Specific want-dates (see "What is a Want-Date?") within the "want-week" are required to be specified on the equipment order as well. LOGS equipment may be ordered several weeks in advance for ease of doing business. Please contact your equipment manager for details, or LOGS Manager. The want-date is the date a car is requested to be placed at an industry. Do I have to order the entire amount of my LOGS commitment each week? There are two options that can be utilized by LOGS holders to avoid penalties when they do not need the entire weekly quantity of LOGS cars: BNSF allows a 10% car ordering deviation that can be either more or less than your weekly LOGS equipment commitment. Example: If your weekly LOGS commitment is 10 cars, you may order between 8 or 12 cars in any given week without incurring a LOGS penalty for that week. Ordering less cars that the LOGS commitment in any week(s) does not release the LOGS permit holder from meeting the overall LOGS commitment. See BNSF Rules Book-7 for specific rules regarding transfers. Alternatively, customers can transfer LOGS to other customers in any quantity desired (up to the LOGS committed quantity). (See "How do customers transfer LOGS?") Can customers change an equipment request after the Monday deadline has passed? This is subject solely to BNSF approval. Customers desiring to alter equipment orders after the deadline must contact their BNSF equipment manager for approval. Such changes if authorized will result in forfeiture of the guarantee and LOG discount, if applicable. See BNSF Rules Book-7 for specific rules regarding changes. What happens with Bad Order cars? Once spotted, bad ordered equipment would be replaced as soon as possible or within seven (7) days of the want-date. The LOG will still be valid on the car and will be paid when shipped. Can the LOGS permit be changed to a different origin region? No, there are no cross region transfers or changes. How do I order BNSF equipment if I am located on a shortline or other Class I railroad? Our plan is for the customer to continue to request equipment through their serving rail carrier contact as today, except utilizing the LOGS Equipment Request Form. This form will specify the fact that a LOG equipment request is being made and provide the LOG permit number to the serving rail carrier. LOGS obligation is considered satisfied upon the offer of equipment to the serving rail carrier or shortline by BNSF.
Getting Your Discount (if applicable)How Do I know if I get a freight discount? Rates that are eligible for incentives will be noted in the Price Documents. The LOGS freight discounts are available to any shipper for movement on the applicable price documents listed as LOGS discount eligible. NOT EVERY COMMODITY, RATE DOCUMENT OR EQUIPMENT TYPE IS ELIGIBLE. Please check the Price Documents to see of your document is eligible. If you have questions concerning applicable documents contact the Manager of LOGS at 817-867-LOGS. If I am eligible for freight discounts, how much and how many do I get? The dollar amount of a LOGS freight deduction is based on the commodity shipped, the number of weeks of your commitment (4, 5, 13, 26 or 52 weeks), the equipment type, and when you place your bid through your myBNSF account. The number of total deductions you will receive is calculated by multiplying the number of weeks bought times the number of cars per week. Example: a 4 week permit for 10 cars a week equals 40 deductions. How does a customer bill a LOGS car when claiming a LOGS discount? Customers will need to submit Internet Shipping Instructions via traditional EDI or the BNSF e.Business page. If you do not have Electronic Bill of Lading capabilities, you can contact us at 888-428-2673 or contact LOGS Manager if you have other types of electronic billing arrangements. When billing the cars the permit number MUST be placed in the correct field on the bill of lading. Permit Transfers/ChangesHow do customers transfer LOGS? A LOG and any applicable discount associated with a LOGS can be transferred two ways:
Under temporary transfers the LOG remains the right and obligation of the original LOG holder, the transferee becomes an authorized user of the permit number as agreed upon by themselves and the LOGS permit holder. Under a permanent transfer, the original permit is modified to reflect the reduced commitment and a new permit number is issued to the transferee reflecting the transferred rights and obligations. Once a transfer has been negotiated between parties, the transferor notifies logs.marketing@bnsf.com to add the transferee company to their permit as an authorized user. The transferee company then uses the transferred permit number to order the negotiated quantity of LOGS equipment (using LOGS equipment request types) into the desired facility, with the usual advance notice. If a freight discount is applicable on the permit, the transferee company also places the permit number on the BOL and their freight bill is created net of the discount amount. Deadline for Transfers is 4pm Friday prior to the equipment ordering deadline of 4pm Monday. LOGS can be transferred in any quantity. All transfers must be approved by BNSF by contacting the LOGS Manager at 817-867-LOGS or e-mail logs.marketing@BNSF.com. What is the LOGS Bulletin Board? The LOGS bulletin board is a secondary market arena to facilitate transfers of LOGS between shippers. Individual equipment offers and wants can be posted for possible transfer. BNSF is not responsible for 3rd party transactions. (See the LOGS Holder Bulletin Board) Can a LOGS holder allow a third party the rights of guaranteed car supply without a change in rights or obligation? In order to facilitate customer cooperatives, LOGS holders may assign the rights for LOGS equipment to other shippers without the transfer of obligation. (See "How do customers transfer LOGS?") No. Customers may transfer their LOGS obligation. (See "How do customers transfer LOGS?") How will LOGS treat weeks of Railroad holidays? LOGS weekly commitment can be prorated based on working days for that week if requested. To have the commitment prorated, contact the LOGS manager at logs.marketing@bnsf.com. MiscellaneousYes. Our desire is to include all regional railroads supplied with BNSF centerbeam equipment and having single factor (non-joint-line) rates published in LOGS price documents to be involved. Yes, by utilizing BNSF-owned or -leased equipment a customer may satisfy LOGS shipment obligations in 2 ways:
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