ACACSO Workshop Car Hire Rule 22

1. ACACSO WorkshopCar Hire Rule 22 November 2011 - Memphis, Tennessee J. D. Pavek The Greenbrier Companies

2. ACACSO – Car Hire Rule 22 Rule 22 - Background and General Concept Below is a statement of opinion. Back when most cars were RR marked and a road was short of cars needed by a shipper, that road would allow (even seek) the use of foreign cars to provide to the shipper for loading. Those cars were placed in assigned service and they were usually supplied by a foreign road that participated in the loaded movements. The originating road paid car-hire in place of purchasing more of its own cars. However, if a shipper had a problem, a strike for example, and was not loading, then it was intended that each road suffer alike for the idle equipment and no car-hire would be paid. This reaction to idle cars caused by shipper loading delay resulted in Rule 22. November 2011, Memphis

3. ACACSO – Car Hire Rule 22 Rule 22 Reclaim for Loading Delay - Owner Responsibility 5 sections to the rule – section B is the most important A. General (reclaim format, definitions, storage exception) B. Car Service Rule 16 Assigned Cars (allowed reclaims) C. Other Assigned Cars (by agreement of holding road & owner) D. Rates (rates paid and reclaimed to be the same) E. Time Limits (rules 13 & 14 for issuing & countering time limits) November 2011, Memphis

4. ACACSO – Car Hire Rule 22 A. General 1.Reclaims made under this rule shall be prepared on a form similar to that shown in Appendix K. In practice, this form is not used (w/CHDX) and reclaims are submitted in the form of car hire detail records. November 2011, Memphis

5. ACACSO – Car Hire Rule 22 • General - Continued • 2. Loading point, referred to in this rule, means any point within the limits of the switching district in which the industry being serviced is located. • Notes: Loading point is not a point at all but a whole service area contained within the switch district. Note also that “holding point” is not similarly broadened to cover a larger area. Even through an EAC TAG looked at the development of an industry reference file defining all the locations within a switch district, a lack of consensus resulted in no action. Which locations are within a switch district is a question of fact that might be answered directly by the road in question or within one of its tariffs. November 2011, Memphis

6. ACACSO – Car Hire Rule 22 • General - Continued • 3. The date and hour placed for loading, referred to in this rule will be the date and hour demurrage free time commences or the date and hour released loaded, whichever comes first. • Notes: Demurrage free time would normally start when a car is placed for loading or is constructively placed or sometime after one of those events based on a tariff. When does free time start when a car is demurrage free by agreement out side of the car hire rules or by tariff? When does the situation occur where a car is loaded prior to the start of demurrage free time starting – in cases where the start of free time is specified in a tariff and a car is placed earlier (on a holiday) and is loaded? November 2011, Memphis

7. ACACSO – Car Hire Rule 22 • General - Continued • 4.When assignee is granted relief from storage charges as provided in service orders or tariffs, car owner will allow reclaim for the hours car is so exempted from storage charges. • Notes: I know of no instances of this provision actually applied due to an AAR or STB issued service order. I believe the concept was originally that car hire was paid on cars for the period during which a RR assessed a storage charge, that is the RR was compensated for car-hire costs by collecting storage charges. If, through an exemption, the owner no longer paid storage charges, then the RR was allowed to reclaim car-hire. November 2011, Memphis

8. ACACSO – Car Hire Rule 22 • B. Car Service Rule 16 Assigned Cars • 1. When owner or lessee orders cars which are assigned to a specific shipper or national customer pool, in accordance with the provisions of Car Service Rule 16 to a road for loading, reclaim for idle time while held at the loading point will be allowed from the date and hour of arrival at the loading point, as evidenced by the car movement record, to the date and hour placed for loading as evidenced by demurrage report, or to the date and hour subject to storage charges. • Notes: • This is the “At The Loading Point” provision of Rule 22 and is coded in a car hire detail record with an Accounting Type Code of 222. • The “ordering of cars” is evidenced by the pool assignment. • This provision covers both RR pools and national pools. • Car Service Rule 16 provides protection to an originating road and allows for pool codes • By original intent and implied in the Rule 22 title but absent in the above is the requirement that there be shipper caused delay. November 2011, Memphis

9. ACACSO – Car Hire Rule 22 • B. Car Service Rule 16 Assigned Cars - Continued • 2a. When empty cars assigned to a shipper at a specific location are held in excess of 24 hours, at a holding point short of the loading point, on the carrier to which the pool is assigned (pool operator), owner or lessee will allow reclaim for all detention time from date and hour of arrival at holding point to date and hour of departure from holding point, as evidenced by the car movement records, excluding hours cars are subject to storage charges. Reclaim will be allowed if assignee requests in writing that cars be held or when assignee cannot immediately accept on arrival at loading point and cars cannot reasonably be held on other tracks at loading point. • Notes: • This is the non-national pool (not a 999xxxx pool) “At The Holding Point” provision. • The car hire detail record is coded with Accounting Type Code of 224. • Only the RR having its pool code assigned to the car is allowed to “held short” reclaims. • There is the explicit requirement that the switch district of the loading point is too congested to hold additional cars. November 2011, Memphis

10. ACACSO – Car Hire Rule 22 • B. Car Service Rule 16 Assigned Cars – Continued • 2b.When empty national customer pool cars are held at a holding point short of the loading point, in excess of 24 hours by a railroad which is a subscriber to that pool, owner or lessee will allow reclaim for all detention time from date and hour of arrival at holding point to date and hour of departure from holding point, as evidenced by the car movement records, excluding hours cars are subject to storage charges. • Notes: • This is the national pool (999xxxx pools) “At The Holding Point” provision. • The car hire detail record is coded with an Accounting Type Code of 224. • No requirement for congestion within the switch district of the loading point. • No limitation to pre-defined locations serving as holding points. • Holding points are point locations, not areas – i.e. car must not be moving between SPLCs November 2011, Memphis

11. ACACSO – Car Hire Rule 22 • B. Car Service Rule 16 Assigned Cars – Continued • 3.When empty cars are ordered home from a holding or loading point, reclaim for all car hire will be allowed from date and hour of arrival at holding or loading point, as evidenced by the car movement records, to date and hour delivered to owner, excluding hours cars are subject to storage charges. • 4.When empty cars are ordered from a holding or loading point to a new loading point, reclaim will be allowed from date and hour of arrival at holding or loading point to the date and hour forwarded, as evidenced by the car movement records, excluding hours cars are subject to storage charges. • 5.With the concurrence of all roads involved, agreements may be negotiated to allow reclaims on a proration of detention of all cars assigned by participating carriers in direct relation to the proportion of revenue received, or any other agreed upon basis. • Notes: • Item 5 is essentially a bi-lateral agreement that allows reclaims to be calculated and taken on the basis of an agreement outside of the car-hire rules. November 2011, Memphis

12. ACACSO – Car Hire Rule 22 C. Other Assigned Cars With the concurrence of the transportation or other officer of the holding road, assigned cars may be ordered to a road for loading. Reclaim for idle time while held at the loading point will be allowed from the date and hour of arrival at the loading point, as evidenced by the car movement records, to the date and hour placed for loading as evidenced by the demurrage report, or to the date and hour storage charges commence. Provisions of Paragraphs B.2., 3., 4. and 5. will apply to these cars. D. Rates The rates to be used in calculating reclaims shall be the rates paid by the reclaiming road to the car owner. E. Time Limits Refer to Car Hire Rules 13 and 14 to determine time limits and procedures for issuing, handling and deducting reclaims November 2011, Memphis

13. ACACSO – Car Hire Rule 22 • Other Comments: • Rule 22 does not apply to any hours during which a car is loaded. • Rule 22 held short reclaim is not allowed for any time a car is moving and any movement, as shown by movement records, breaks the continuity of the over 24 hour period. • No Rule 22 is allowed for any time period for which hours were not previously reported/paid with a detail ‘010’ record (concurrent payment/reclaim is fine). • There continues to be inconsistencies in how Rule 22 is applied by railroads. This should be corrected by edits to the rule to make it more exacting but repeated attempts to modify the rule ended in stalemates. November 2011, Memphis