Re: Handling RR Claims

Greg Martin

Nope. It was the other way around. The delivering road collected the total bill from consignee, and all railroads involved shared out the freight charges by mileage.
I am not sure you actually meant that the "The delivering road collected the total bill from consignee..." as the initial freight bills were paid to the origin carrier by the shipper, and the freight charges "beyond" could be paid by the consignee or shipper as payer of freight Rule 11. True that all revenues collected were then paid to all parties involved in the haul by the origin carrier, a timely process most destination carriers will tell you.
PFE did not see any of that money directly, but were paid for mileage on the cars, by each railroad over which the car had moved. They certainly did not bear any claims, as Greg says, but were VERY aware of such problems, and as I understood it, tracked claims so as to be able to advise shippers on a voidance of those problems in future.
PFE I am sure could not survive from the car hire collected from it's fleet of car as any car management company will tell you. Car hire only helps pay the company back for their investment and some of the upkeep but car hire is a sliding scale and is reduced as the car ages. As the car hire is reduced to the age of the fleet the repair cost go up, natural progression. So the PFE team was paid a fee from UPR/SP/WP for their management services, which came from the revenues collected. I am sure that the management at PFE were far more concerned with the amount of units in service and online just as any car management group does. Claims didn't impact their business directly, perhaps indirectly as they were concerned with the carrier's (UP/SP/WP) reliability for future business. So maybe they did pick some unfavorable "beyond carriers" to beat up. There is more to the story of these separate endeavors that the railroads set up, only a few as successful as PFE. I love the subject but it is a timely story and we should move on...
To assert, as Greg does, that claims were "never really on PFE's radar" is simply incorrect in general, even if true in narrow financial terms.

Tony Thompson 
Again the impact to PFE's business was indirect result of as service issue by a carrier, and as expected the rule, "Not my Johnny" was likely invoked by railroad marketing in the shipper "WTF happened meeting" afterwards, that is what a railroad expense account was for...  Don't forget PFE was just a car management company, broke? fix them...  Need more? buy them... technology advances? rebuild them...
But as Elden says there was never a marked change in claims regardless of all the corporate guidelines. Whine, bitch and point fingers but in the end pay up and move on. Remember not all claims were resolved in favor of the shipper/consignee.
Greg Martin

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