Rule 4 Update

Report
ACACSO Meeting
Las Vegas – May 10, 2013
Scott Churchill
CSX Transportation
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Car Hire Rule 4 allows reclaim for car hire costs incurred while
empty cars are under revenue billing
Currently, carriers must identify revenue empty shipments
and the car hire costs incurred for those shipments
A reclaim must be created to recover these costs
Manual intervention may be often required
Car owners must verify that duplicate reclaims have not been
requested and that systems have not generated multiple
reclaims
Other administrative effort may be required to ensure all
reclaims have been paid on a timely basis
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Replace the existing Car Hire Rule 4 reclaim process with
automated processing at Railinc using car movement records,
LCS interchanges and waybill data (waybill number, date,
origin road and STCC)
The automation of Car Hire Rule 4 will eliminate reclaims and
reduce the associated efforts and costs within the car
accounting function at car owners and railroads
Carriers will be able to redirect the resources currently
expended on this activity
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Collect, merge and store data from Railinc repositories related
to Rule 4 processing
Identify required elements to process Rule 4 situations (STCC,
Umler, other)
Send information/event (TRAIN28) to car owners
Integrate messaging with internal Railinc applications
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Cost reduction – Carriers will no longer incur the costs
associated with identifying and processing Car Hire Rules for
reclaims
Reduction of time and effort spent on processing, analyzing
and responding to Rule 4 reclaims by the industry
Cost avoidance – Replacement of functionality requested by
and/or currently contained in legacy mainframe systems at
railroad customers via a Railinc solution will avoid some
development costs
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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
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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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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
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