Transcript 25th Annual Client Conference

TOL’s
All You Need to Know
ACACSO, Austin TX
2014
Imagination at work.
Nov 10 – 12,
Transfer of Liabilities
Car Hire Rules 4, 5 & 15
 Rule 4
 Rule 5
 Rule 15
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Car Hire Rule 4
Transfer of Liability
3
Rule 4 TOL Outline
What is Car Hire Rule 4?
Car Hire Rule 4 – Past
Car Hire Rule 4 – Present
Car Accounting Self Service example
Questions?
What is Car Hire Rule 4?
Provides handling carrier car hire relief for
revenue empty billed shipments
Car Hire Rule 4 – Past
 Rule 4 – Exemptions From Charges
 A. Revenue Billed Empty Cars
 For empty cars handled under revenue billing in
line haul or switching service, car hire costs for the
revenue billed cycle shall be reclaimed from the
car owner
 B. Time Limits and Procedures
 Refer to Car Hire Rules 13 and 14 to determine
time limits and procedures for issuing, handling
and deducting reclaims
Car Hire Rule 4 - Past
 Each handling carrier identified revenue empty shipments and
car hire costs incurred for those shipments
 Reclaim created to recover these costs
 Manual intervention was often required
 Handling carriers responsible for verifying systems did not
generate multiple reclaims
 Car owners were responsible for verifying that duplicate
reclaims were not requested
 Other administrative effort required to ensure all reclaims were
processed on a timely basis
Car Hire Rule 4 - Present


Rule 4 – Exemptions From Charges
A.
Revenue Billed Empty Cars
 For empty cars handled under revenue billing in line haul or switching service, car hire
costs for the revenue billed cycle shall be the responsibility of the car mark owner
 B.
Assignment of Car Hire Liability
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C.
1. The AAR Car Hire Rule 4 process will identify empty revenue cycles based on the Standard Transportation
Commodity Code (STCC) transmitted to Railinc on the EDI 417 waybill transaction. In order to be eligible for
relief, the handling carrier must submit the EDI 417 waybill transaction to Railinc
2. The following commodity codes will designate empty, revenue shipments.
3742205, 3742210, 3742213, 3742214, 3742215, 3742216, 3742217, 3742219, 3742233, 3742239,
3742263, 3742264, 3742293, 3742295, 3742298, 3742299
3. A TRAIN 28 message will be created to assign car hire liability for the revenue empty cycle to the car
mark owner
Invalid Relief
If investigation develops that a cycle was improperly identified as an empty, revenue cycle,
the car mark owner will be allowed to reclaim the car hire due for the cycle from the
handling carrier after receiving consensus from the handling carrier. These reclaims should
not be deducted; a file outlining the reason for the reclaim should be sent to the erring
carrier for review. The reclaim will be handled under the provisions of Car Hire Rule 13.
Car Hire Rule 4 - Present
 Automated processing at Railinc using car movement records, LCS
interchanges and waybill data (waybill number, date, origin road
and STCC)
 Reduced reclaims and associated efforts and costs within the car
accounting function at car owners and railroads
 Resources previously consumed on this activity may be redirected
 Send information/event (TRAIN28) to car owner and handling
carrier
20th day of month – waybills from previous month must be submitted
21st day of month – TRAIN28 messages created
Car Hire Rule 4 - CASS Example
Car Hire Rule 4 – CASS Example
Title or Job Number | XX Month 201X
See tutorial regarding
confidentiality disclosures.
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Title or Job Number | XX Month 201X
See tutorial regarding
confidentiality disclosures.
13
Title or Job Number | XX Month 201X
See tutorial regarding
confidentiality disclosures.
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Car Hire Rule 5
Switching Expense
Recovery
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TOL – Car Hire Rule 5, What Is It?
•
Allows railroads to electronically move Car Hire to
another road
• Specific switching & interchange requirements
• TRAIN II Manual, Section 5
• Road with car is not paying Car Hire
OT-10: Car Hire Rules
TRAIN II Manual
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TOL Rule 5 & Rule 4
Differences
Rule 5
• Only for switch moves
• Against prior line haul road
• LCS entries come through all month
• Loaded receipt or delivery only
• Time limit
– Intermediate Switch 24 hours
– Terminal Switch 120 hours
•
Start & stop time can span across months
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TOL Rule 5 & Rule 4
Differences
Rule 4
• Can be on any railroad, not just switch roads
• Against car owner
• LCS entries arrive at one time for the month
• Specific requirements
― Empty time AND
― Specific STCC AND
― Electronic 417 Waybill
•
•
Unlimited time
Moves spanning months, separate entry each month
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TOL – Car Hire Rule’s 5 & 4
Similarities
They are Not reclaims!
Reclaim
Automated interchanges from LCS
Road with the car is not paying Car Hire
Car Hire starts after the Rule 4 or 5 TOL is done
Not a separate entry on the CHDX
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Rule 4 - Example
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Rule 4 Example
GE Transportation TOL Increase/Decrease Report:
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TOL Rule 5 Example
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Car Hire Rule 15
Cars Not Accepted When Offered
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TOL – Car Hire Rule 15
Allows for Car Hire relief when a road is not
able to accept the cars in interchange!
Road with the car is not the road Paying for
the car!
Railroads must be in communication
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TOL – Car Hire Rule 15
Holding Carrier sends TRAIN message
to Railinc
Railinc forwards to Receiving carrier
1. Agree to accept car hire liability
2. Deny the TOL
NOTE: Denying the Rule 15 TOL indicates that the
receiving carrier is able to accept the cars offered
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TOL – Rule 15 Liability Accepted by Receiving
Road
(1)  Train 08 /
Train 10 type 82
LCS
Car Hire Liability
Car Hire Liability Transferred with Date & Time of Original Train08
Source: Circular OT-10, CH Rule 15 C.1.a.
TOL – Rule 15 Liability Rejected by Receiving
Road
(1)  Train 08 /
Train 10 type 82
LCS
Car Hire Liability
No Car Hire Liability Transferred 
They can take the cars in interchange
Source: Circular OT-10, CH Rule 15 C.1.a.
TOL Rule 15 Example
LCS K = End of Rule 15
1 minute prior to physical delivery
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TOL Car Hire Rule 4, 5, & 15
Questions?
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