Transcript Mileage Equalization
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Mileage Equalization
ACACSO November 2011
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Introduction
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DEFINITION OF MILEAGE EQUALIZATION
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MILEAGE ADJUSTMENTS
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MONTHLY PROCESSING
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SAMPLE REPORT
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10 YEAR TREND
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CANADIAN EQUALIZATION
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Definition of Mileage Equalization
• Mileage Equalization is the process by which RR’s are compensated for the movement of excessive empty routing of cars • Implemented as part of an agreement on how RR’s will be compensated for private car moves • In the US it applies to only Tank cars and is covered under Tariff 6007 • In Canada it is covered under individual tariffs by CN and CPRS • There is no equalization in Mexico
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Definition of Mileage Equalization
• US mileage equalization is covered under tariff 6007 Item 187 • Rate is set annually in September retroactive to the first of each year and is determined by the formula in the Ex. Parte 328 agreement between RR’s and tank car owners • Equalization invoices are issued by Railinc in July for movements during the previous year
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Mileage Adjustments
• Adjustments to equalization miles are sent to the RR’s and can be made for up to three years • Adjustments for the current accounting year, including any adjustments for prior accounting years must be reported by May 20, of each year • Adjustments made after May 20 will be reported in the current year, not the year of the adjustment
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Mileage Adjustments – Car Owners
• • • If RR’s do not automatically adjust discrepancies, then report discrepancies to RR’s in writing, copy to AAR Carriers have 30 days to make adjustments. Advise
car owner when adjustment made – ALSO ADVISE AAR IF OWNER REQUEST FOR ADJUSTMENT SHOWS COPY TO AAR
AAR will make adjustments if the Rail carrier fails to respond to your request (This is done prior to year end)
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Monthly Processing
• RR’s report loaded and empty mileage data on the CHDX file to Railinc • • • • Type 900 Summary records indicates all mileage that should be included in the equalization account • • Railinc pulls Equalization records from the CHDX and creates Equalization Registers Registers are sent to Car Owners and RR’s monthly Registers are accumulated by Car Mark Owner Data is accumulated on an annual basis Railinc prepares and sends annual equalization invoices
Monthly Processing - Calculation
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• Accumulated by Car Mark Owner; reported by RR and month Aggregate Equalization Loaded Miles Aggregate Equalization Empty Miles Multiply Loaded Miles by 1.06 (106%) Subtract Adjusted Loaded Miles from Empty Miles
Result is Excess Empty Miles
Multiply Excess Empty Miles by Equation Rate
Result is Equalization Amount Due
Sample Report
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Paid To Mark Paying Owner Paying Mark Equalization of Private Tank Car Mileage March 2011 Year to Date by Paid-To Owner: DEFX DEF Tank Car Company Date Earned Loaded Miles Empty Miles Empty Miles Over 106% of Loaded Percentage Variance DEFX ABCD OWNER TOTAL YTD ABCD DEFX 1101 1102 1103 772 1804 575 3151 3151 1974 6 3270 5250 5250 1909 1909 166.6
166.6
USING YTD MILEAGE @ 0.67/MI – TOTAL BILL $1,279.03
Sample Report
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Paid To Mark Paying Owner Paying Mark Equalization of Private Tank Car Mileage March 2011 Year to Date by Paid-To Owner: DEFX DEF Tank Car Company Date Earned Loaded Miles Empty Miles Empty Miles Over 106% of Loaded Percentage Variance DEFX ABCD ABCD 1101 1102 1103 772 1804 575 1974 6 3270 OWNER TOTAL YTD DEFX 3151 1.06x
3151 5250 5250 3341 USING YTD MILEAGE @ 0.67/MI – TOTAL BILL 1909 1909 166.6
166.6
$1,279.03
Sample Report
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Paid To Mark Paying Owner Paying Mark Equalization of Private Tank Car Mileage March 2011 Year to Date by Paid-To Owner: DEFX DEF Tank Car Company Date Earned Loaded Miles Empty Miles Empty Miles Over 106% of Loaded Percentage Variance DEFX ABCD ABCD 1101 1102 1103 772 1804 575 1974 6 3270 OWNER TOTAL YTD DEFX 3151 1.06x
3151 5250 5250 3341 USING YTD MILEAGE @ 0.67/MI – TOTAL BILL 1909 1909 x$.67
166.6
166.6
$1,279.03
US Tank Car Equalization – 10 Year Trend $25 000 $0,80
A m o u n t
$20 000
I n
$15 000
T h o u s a n d s
$10 000 $5 000 $0,39 $0,38 $0,39 $0,41 $0,44 $0,48 $0,53 $0,57 $0,65 $0,63 $0,67 $0,70 $0,60 $0,50 $0,40
R a t e
$0,30 $0,20 $0,10 $ 2001 2002 2003 2004 2005 2006 Total Invoiced 2007 Rate 2008 2009 2010 2011 $-
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Canadian Mileage Equalization
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• • • Canadian equalization covers moves within Canada and are determined by tariffs by CN and CPRS CN Equalization: • • • • Covered under CN Tariff 6544 for moves within Canada All private marked cars – despite car type are covered under the tariff Mileage Adjustments should be made under the rules as outlined in US tariff RIC-6007 Allowance = 6% Rate = CDN $1.00
CPRS Equalization: • Covered under CPRS Tariff 6 for moves within Canada • • • Applies to covered hoppers and Tank cars only Disputes to mileage/invoice must be made within the terms of the invoice Allowance = 6% Rate = CDN $1.10
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