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Re: Ongoing cost of stranded cars
Author: S.L. Murray
Date: 01-29-2008 - 14:18
G Thomas Wrote:
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> Didn't the NCRA purchase a quantity of cars
> several years ago and turn them loose in general
> circulation? Could that have been to balance the
> bill, or at least help offset the ongoing cost of
> the trapped cars? Or is my recollection faulty?
I certainly can't speak for the NCRA, but in general it isn't a bad idea to own cars so as to have a car hire receivable to offset your payables. You can get into a lot of trouble if you don't manage the cars you own, but there are a host of companies that will assist a carrier with this.
Of course, if you simply aren't reporting or paying your car hire, or otherwise refuse to play by the rules to an overwhelming extent, then the foreign roads can and will offset any payments, such as handling charges and interline freight, along with penalties. There's a host of penalties for nonreporting (and non payment) of car hire which tops out at around a 30% penalty plus a couple of dollars per car not reported.
As a last resort they'll simply add on a hefty fee ($300 to $500 per carload) to the shipper and make them pay it.
Also, the old 120 hours granted in relief under Rule 5 of car hire is NOT something most handling line carriers have a right to, so I'd file that under "don't bite the hand that feeds you".
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> Didn't the NCRA purchase a quantity of cars
> several years ago and turn them loose in general
> circulation? Could that have been to balance the
> bill, or at least help offset the ongoing cost of
> the trapped cars? Or is my recollection faulty?
I certainly can't speak for the NCRA, but in general it isn't a bad idea to own cars so as to have a car hire receivable to offset your payables. You can get into a lot of trouble if you don't manage the cars you own, but there are a host of companies that will assist a carrier with this.
Of course, if you simply aren't reporting or paying your car hire, or otherwise refuse to play by the rules to an overwhelming extent, then the foreign roads can and will offset any payments, such as handling charges and interline freight, along with penalties. There's a host of penalties for nonreporting (and non payment) of car hire which tops out at around a 30% penalty plus a couple of dollars per car not reported.
As a last resort they'll simply add on a hefty fee ($300 to $500 per carload) to the shipper and make them pay it.
Also, the old 120 hours granted in relief under Rule 5 of car hire is NOT something most handling line carriers have a right to, so I'd file that under "don't bite the hand that feeds you".
