Transcript Rule 4 Reclaim Initiative
Rule 4 Initiative
Jackie Singer CN System Manager – Business Process Optimization
Rule 4 Reclaims Definition
Car Hire Rule 4 allows reclaim for car hire costs incurred while empty cars are under revenue billing.
Current Steps in Rule 4 Process
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Identify revenue empty shipments Identify associated car hire costs Create reclaims Audit payable reclaims Resolve disputes
Current Process Map
Customer sends EDI404 Originating Carrier sends EDI417 Railinc sends EDI417 to participating carriers Carrier 1 Carrier 2 Car Accounting staff determine if a revenue empty move occurred Create Rule 4 Send Rule 4 segment on CHDX
Manual intervention required
Rule 4 audited by Car Owner
Future Vision
Replace existing carrier processes for creating reclaims under the provisions of Car Hire Rule 4 with a centralized, automatic process at Railinc.
Information Needed to Determine Rule 4
• • • The following will determine if there is a revenue empty move: STCC Revenue waybill Empty movement records • • • • • • • The following information is required to create a Rule 4 LCS record: Car Initial and Number Start Date and Hour of Movement End Date and Hour of Movement Equipment Owner Car Hire Liable Carrier Start Location End Location
Railinc has all the necessary information to determine Rule 4
Future Process Map
Customer sends EDI404 Originating Carrier sends EDI417 Railinc sends EDI417 to other carriers Carrier 1 Carrier 2 Railinc determines if the move is a revenue empty Yes Create LCS Rule 4 record Stop No
Benefits
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Reduce manual intervention required by Railroads Reduce disputes, counter reclaims and associated workload Erroneous reclaims will not be processed Valid reclaims not currently generated will be processed
Potential Barriers
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Local traffic waybill information not currently sent to Railinc Traffic determined to be a revenue empty internally, after Railinc processing Industry agreement to processing standards
Conclusion
Potential to reduce or eliminate some manual processes Potential for the industry to come to an agreement on Rule 4 criteria Next step to centralizing Car Hire processes at Railinc, after Rule 7 and Rule 8