Imagination at work.

TOL’sAll You Need to Know

ACACSO, Austin TX Nov 10 – 12, 2014

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Transfer of LiabilitiesCar Hire Rules 4, 5 & 15

Rule 4 Rule 5 Rule 15

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Car Hire Rule 4Transfer of Liability

Rule 4 TOL Outline

What is Car Hire Rule 4?Car Hire Rule 4 – PastCar Hire Rule 4 – PresentCar Accounting Self Service exampleQuestions?

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 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 C. 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 submitted21st day of month – TRAIN28 messages created

Car Hire Rule 4 - CASS Example

Car Hire Rule 4 – CASS Example

See tutorial regarding confidentiality disclosures.

12Title or Job Number | XX Month 201X

See tutorial regarding confidentiality disclosures.

13Title or Job Number | XX Month 201X

See tutorial regarding confidentiality disclosures.

14Title or Job Number | XX Month 201X

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Car Hire Rule 5Switching 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

TRAIN II ManualOT-10: Car Hire Rules

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TOL Rule 5 & Rule 4Differences

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 4DifferencesRule 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!

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

Reclaim

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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 15Cars 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 messageto Railinc

Railinc forwards to Receiving carrier1. 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

TOL – Rule 15 Liability Accepted by Receiving Road

LCS

Car Hire Liability Transferred with Date & Time of Original Train08

(3) Train 08 / 10 type 86(4) Tr

ain

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(1) Train 08 /Train 10 type 82

(2) Train 26

Car Hire Liability

Source: Circular OT-10, CH Rule 15 C.1.a.

TOL – Rule 15 Liability Rejected by Receiving Road

Source: Circular OT-10, CH Rule 15 C.1.a.

No Car Hire Liability Transferred They can take the cars in interchange

LCS

Car Hire Liability

(3) Train 08 / 10 type 89

(4) Tr

ain

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(1) Train 08 /Train 10 type 82

(2) Train 26

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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?