Leo:
There is another change being implemented by BNSF. The old Car Service
Rule 7 said, in essence:
"An empty private car released by the consignee, in the absence of
instructions from the consignee or car owner, will be returned to the
point of last origin in reverse of the loaded route."
With so much plastic being held for billing all over Texas and Oklahoma
this rule often leads to a dead end on that "reverse route".
BNSF's plan is to take any car that is released without billing and does
not have a valid reverse route and put it on detention using the owner
shown in the UMLER as the "To Pay" party. Yes, I know that anyone with
half a brain can skip the "hold" point and see where the true origin is
but computers can't and this is their way of solving the problem.
Let the car owner beware,
TheVLBG
Current industry trends:
As the carriers struggle to maintain profitability they keep coming up w/more
and more ways to generate revenue. The first wave was begun 3 or 4 years
ago(and has spread like the aphids do in a dry August). Tank cars running mty
are not subject to frt charges(only loaded moves). The whole system works on
what is called equalization whereby as long as yor whole fleet(all UTLX cars
for example) don't run empty more than 106% of loaded mileage in year(across
the entire USA) you do not receive charges for the mty moves. If over 106%
you get an equalization bill at year end (March of following year) for those
mty miles in excess of 106%.Somewhat straight forward. Now many carriers have
put exceptions into their tariffs stating that moves to shop so and so will
be billed at revenue frt charge as if loaded. These can be quite substantial
and place that shop at a marked disadvantage as the car owner usually tells
the shop its their problem if they want the repair business.
Now as of this year several carriers have applied a new tariff to covered
hoppers. The mty move immediately following a loaded move is free. Any
additional mty moves are charged at revenue frt as if loaded. So a plastics
hopper loaded in Houston moving to New Jersey is charged frt.The mty move
back to Houston is free.Then the lessee decides he wants the car shopped or
returned to the owner as lease is over.The rr charges frt at $1.00+/mile for
the move to shop.Then when the shop finishes working the car it goes to a
storage location waiting for the next lease(another frt charge is incurred).
At some point the car is ordered out to another lease(yup another frt bill
gets generated).Keep in mind these charges are being developed at a time when
over 50% of the U.S. fleet is owned by other than the rr and that % is
growing each day.
Makes me think the carriers want to discourage non railroad ownership of
covered hoppers.
Sorry I've rambled on long enough.
Leo
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