Car hire is complex and deeply rooted in the history of the rail industry.
It's essential to understand the data flow of car accounting to grasp the entire process.
Key topics in the lecture: definition, history, types of equipment, governing documents, roles of TTX and Railinc, and CarHire applications by Railinc.
Basic Data Flow in Car Hire
Car owners/users negotiate CarHire rates.
Information on car movements, damage, and defects sent to RAL Inc's Event Repository.
Liability Continuity System (LCS) analyzes data to create liability information.
Carriers calculate and report car hire owed through the Car Hire Data Exchange File (CHDX).
Railroad Clearinghouse (RCH) settles funds between car owners and users.
Car Hire Definition and Purpose
Car hire: rental fee paid by the user of rail equipment to the owner.
Provides income to the owner and encourages effective equipment utilization.
Historical Background
Pre-1886: No car hire, different track gauges prevented interchange of cars.
1886: Adoption of standard track gauge (4 feet 8.5 inches) enabled car interchange.
Railroads returned one empty car for each loaded car, which was inefficient and discarded.
1887: Association of Car Accountants formed; initial car hire rates set.
1890s: Introduction of daily car hire rates (20 cents/day) by ICC.
1902: Creation of Committee of Mileage and Per Diem, introducing key Car Hire Rules.
20th Century: Efficiency improved, car hire rates increased, adoption of hourly car hire system in 1979.
1993: Industry began negotiating car hire rates; introduction of deprescription process.
1994-2018: Various reforms including Transfer of Liability (TOL), automation, and new systems for managing car hire data.
Types of Equipment and Car Hire
Railroad-Owned Cars:
Paid based on possession time, travel distance, and attached appurtenances.
Governed by AAR circular OT10.
Private Railcars:
Earn car hire based on loaded miles traveled, no time component.
Governed by Tariff RIC 6007.
Governing Structures
Main Committees:
AAR Board of Directors and two senior management committees (PAMC and SAMC).
Equipment Assets Committee (EAC) handles car hire rules.
Subcommittees:
Task Forces manage ongoing responsibilities.
Technical Advisory Groups (TAGs) address specific technical questions.
EAC task forces include Car Hire Calculation, Car Service, and Car Hire Rates Processes and Procedures.
Role of TTX and Railinc
TTX: Major supplier of intermodal flats, vehicle flats, and boxcars.
Manages national pools of cars with authorization from the STB.
Railinc: Provides IT and business process support.
Publishes national tariffs and circulars, including car hire rules.
Manages critical applications and master files for the rail industry.
Key applications: Car Accounting Self Service (CAS), Car Hire Data Exchange, Event Repository, Liability Continuity System, etc.
Contact Information
For any questions, contact: 877-RAIL-INC or csc@railinc.com.