CSX/NS/NSSX MOW gons on GLC
CSX/NS/NSSX MOW gons on GLC
Random question. I know with revenue cars, railroads keep close/closer tabs on where their cars sit when not in transit (charging demurrage), but can I assume MOW cars, even when in the hands or other railroads don't care when they get their cars back, or do they even track them? Reason I ask- there is a CSX gon on a siting in Traverse City since probably May, and 4 CSX/NS/NSSX gons in Boardman yard in TC also since May, presummably to pick up old ties along the right away from a tie replacement project and taken to McBain (these cars are the same type/reporting marks as you'd see bringing used ties off the NS/CSX railroads). Apparently GLC is in no hurry to gather up these ties, and the cars sit. Curious on thoughts on how common this might be.
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Re: CSX/NS/NSSX MOW gons on GLC
They might just be leased to GLC, thus not needing to be returned until the lease is expired.
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Re: CSX/NS/NSSX MOW gons on GLC
Probably something like this. Demurrage isn’t always charged since it’s a “keep it moving” charge based on the idea that the car is being essentially short-term leased for each load. The car owner needs to recoup lost revenue if the car cannot be used for another load, essentially. But if the car is long term leased to a customer or shipper, then the car owner is being paid no matter what the renter is doing with the car, so no need for such a charge.
For instance, a lot of plastics traffic is handled via a leased fleet and often used as “storage in transit”, where the cars may sit for weeks or even months. These cars almost certainly are not collecting demurrage for the car owner, since there is no opportunity cost to the car owner while the cars sit.
Relatively little traffic actually collects demurrage these days compared to decades gone by, since many major customers have their own dedicated fleet of equipment to service them. It’s hard to know what is and isn’t covered by such terms, since both railroads and non-railroad owners lease out cars.
One newer form of demurrage, however, comes for some of these major customers, especially unit train customers, for holding locomotives over while loading or unloading. While the cars’ time might be “free”, there is often a contract clause giving the plant a certain period of time before hefty demurrage begins accruing on the locomotives.
Re: CSX/NS/NSSX MOW gons on GLC
There is also such a thing as a (trip lease car)