Car Hire Rule 4 Jim Pinson ACACSO May 7, 2014

Today’s agenda Changes In Car Hire Rule 4 Review of New Car Hire Rule 4 Process Potential Issues

Changes in Car Hire Rule 4 Prior to January 1, 2014 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. Effective January 1, 2014 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.

Changes in Car Hire Rule 4 Prior to January 1, 2014 B. Time Limits and Procedures Refer to Car Hire Rule 13 and 14 to determine time limits and procedures for issuing, handling and deducting reclaims Effective January 1, 2014 Initial reclaims not subject to Car Hire Rules 13 and 14

Changes in Car Hire Rule 4 New Paragraph: B 1 B. Assignment of 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. Note that when I say east to understand it means that Rule 5, Haualge and Suppression is easy to see and query

Changes in Car Hire Rule 4 New Paragraph: B 2 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 and 3742299. Note that when I say east to understand it means that Rule 5, Haualge and Suppression is easy to see and query

Changes in Car Hire Rule 4 New Paragraph: B 3 3. A TRAIN 28 message will be created to assign car hire liability for the revenue empty cycle to the car mark owner. Note that when I say east to understand it means that Rule 5, Haualge and Suppression is easy to see and query

Changes in Car Hire Rule 4 New Paragraph: C 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. Note that when I say east to understand it means that Rule 5, Haualge and Suppression is easy to see and query

Changes in Car Hire Rule 4 New Paragraph: C 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. Note that when I say east to understand it means that Rule 5, Haualge and Suppression is easy to see and query

Summary of Car Hire Rule 4 Changes Traditional reclaims eliminated EDI 417 is the source of CHR4 relief Specific STCCs define Revenue Empty Relief is available two ways: TOL (TRAIN 28) Car Hire Liability File (CHLF) Reclaim is made only if EDI 417 is incorrect

Review of New CHR4 Process Updated CHLF Railinc expanded the Car Hire Liability File (CHLF) in 2013, adding cycles and STCCs. The expanded CHLF is the basis for CHR 4 relief.

Review of New CHR4 Process Review cycles and STCCs on CHLF A CHR4 STCC will result in CHR4 relief. There are two ways to create relief: CHLF entries: Car hire is moved to the mark owner’s account. TOL messages are issued.

Review of New CHR4 Process Timing CHR4 TOLs are issued on the 21st of the following month. For example, a February TOL is distributed on March 21. CHR4 relief is finalized on the actual file. For example, the actual CHLF distributed on April 1 will contain February relief.

Potential Issues Missing EDI 417 Records No relief can be identified

Potential Issues Inaccurate EDI 417 records Revenue empty STCC is not used Reclaim is lost Revenue empty STCC is used in error Reclaim is allowed (CHR 4C) Documentation must be presented to the car mark owner

QUESTIONS?