This study examines the likely linkage between precision scheduled railroading PSR and escalating demurrage using Class I freight railroad traffic and financial data between 2002 and 2021. Our empirical analysis shows that PSR and associated operational changes has led to higher demurrage. PSR implementation is associated with a 77 percent increase in real total demurrage per car mile in the short and medium term. Interestingly, shippers have not adapted to PSR related changes to mitigate the increasing burden of delay charges. This lack of adjustment can help explain the significantly high impact of PSR on the level of demurrage levied to shippers. Results also suggest that Class I freight railroad demurrage and operational policies have differential effects on real total demurrage per car mile compared to the base railroad when controlling for PSR. There was no statistically significant difference in delay charges for traffic generated by privately owned freight cars compared to railroad owned freight cars. Although we do not attribute escalating demurrage entirely on PSR, overall, these results support the idea that PSR adoption has contributed to the higher-than-normal charges levied on rail shippers for freight car loading and unloading related delays albeit in the short and medium terms.