Car Hire Training

This series of presentations explains the various principles of car hire, the charge paid by one railroad for its use of another railroad's railcars. This training program is fully endorsed by the AAR Equipment Assets Committee (EAC) and the Association of Car Accounting and Car Service Officers (ACACSO). The material was originally presented by industry experts at the American Short Line & Regional Railroad Association (ASLRRA) convention in April 2013.

Be sure to turn your speakers on/up to hear these presentations.

1—Overview and History: High-level details on the purpose and history of car hire and the AAR committee structure behind the governance and maintenance of car hire rules. This video includes an overview of the flow chart used throughout the Car Hire Training series to illustrate how information flows through car accounting systems.

2—Car Accounting Self-Service: An overview of Railinc's Car Accounting Self-Service (CASS) application, which enables users to view Event Repository (ER) records that impact the assignment of car hire liability. This explains how to access CASS and how to retrieve records and includes examples of car hire scenarios, including haulage, Rule 5 TOL, Rule 15 TOL and suppressed interchange. And also explains how to use CASS to create a Liability Acceptance Message (LAM).

3—Determination of Rates: An overview of car hire rate negotiations that includes the bid and offer process and the Car Hire Accounting Rate Master (CHARM).

4—Interchange Reporting: An overview of interchanges and their effect on car hire that introduces car hire rules found in OT-10 and discusses the different interchange types.

5—Liability Continuity System: An overview of the Liability Continuity System (LCS), the core system used to determine car hire liability that explains the history and purpose of LCS and gives examples of displays from CASS.

6—Reporting and Settlement: An overview of the reporting and settlement of car hire that includes an explanation of the Car Hire Data Exchange (CHDX) process and how funds are exchanged through the Railroad Clearinghouse (RCH).

7—Car Hire Rules 1-4, 25: An overview of car hire rules 1 through 4 and rule 25. Rule 1 deals with the registration of cars in the Umler system and car hire rates. Rule 2 governs the calculation of hours and mileage. Rule 3 covers the reporting and settlement of car hire. Rule 4 allows relief from car hire for empty cars that are moved under revenue billing. Rule 25 outlines the arbitration procedure when agreement on car hire rates cannot be reached.

8—Reclaims: An overview of reclaims. Reclaims are due to systems identifying and quantifying situations in which, by rule or by bilateral agreement, car hire is not due.

9—Transfer of Liability: An overview of the Transfer of Liability (TOL) process. TOL is a transaction created to eliminate reclaims and minimize the need to communicate deprescribed car hire rates to other parties. TOL allows car hire to be electronically transferred to the responsible party.

10—Damaged and Defective Car Tracking: An overview of the Damaged and Defective Car Tracking (DDCT) System and its effect on car hire. This covers special road designations LCS uses to indicate when car hire liability has changed. Detailed examples of these scenarios are provided.

11—Car Hire Rules 5-15, 22: Car hire rules 5 through 15 and rule 22. Rule 5 covers the relief allowed when cars are handled in reciprocal switch service. Rule 6 makes provision for audits of car hire records—both by the AAR audit staff and by other carriers. Rule 7 covers damaged equipment where the handling line is responsible for repairs. Rule 8 deals with defective equipment that the car mark owner must repair. Rule 9 covers interchange reporting and the accurate calculation of car hire. Rule 10 covers the LCS default logic and junction reports. Rule 11 deals with the handling of car hire claims. Rule 12 says the car hire must be paid without regard for any reclaims or recoveries that may be pending. Rule 13 outlines the time limits for processing reclaims outside the Car Hire Data Exchange process. Rule 14 proves the time limits for deducting reclaims through the CHDX process. Rule 15 covers cars that cannot be accepted in interchange. Rule 22 allows reclaims for cars that are assigned to national customer pools or specific customer pools.

12—Haulage: An overview of haulage. Haulage involves a bilateral agreement between two or more carriers. One carrier, the haulage rights carrier, hires another, the hauling carrier, to act as its agent. Usually, the haulage rights carrier is responsible for car hire while the hauling carrier physically handles cars in haulage service.

13—Claim Processing: Car hire claim processing. This includes an explanation of the car hire reporting timeline and the claims process.

14—Car Hire Rules 16-21, 23, 24: Car hire rules 16 through 21, rule 23 and rule 24. Rule 16 is currently not used. Rule 17 outlines the arbitration process. Rule 18 delegates the EAC as responsible for informally interpreting car service and car hire rules. Rule 19 outlines the powers of the AAR's Business Services division. Rule 20 deals with cars on Canadian railways or Canadian-owned cars. Rule 21 deals with the reclaims on new cars assigned a Transportation Code D. Rule 23 allows for the reclaim of car hire paid on stored boxcars. Rule 24 allows carriers to assess a mileage charge for boxcars that are shipped home at the car mark owner's request.