Market Terminology

Here at Tealinc, Ltd., our intent is the inform and educate our current and future customers. We have included general terms that we feel our customers can use to help better understand the market.

Terms:

• Net Lease:
Lessee is responsible for insurance, taxes and maintenance while the cars are under lease.

• Full Service Lease:
Lessor is responsible for insurance, taxes and maintenance while the cars are under lease.

• Modified Full Service Lease:
Lessor is responsible for insurance, taxes and maintenance while the cars are under lease with the exception of gates, hatches, or other misc. parts associated with the railcar as identified by the Lessor.

• Railcar Mark/ Initial/ Number:
Similar to a license plate for an automobile, all railcars must be marked with a 2-4 alpha character initial followed by a number sequence to identify it. All railcars owned or operated by a railroad can carry marks between 2-4 characters (i.e. CP 12345, CNW 12345, BNSF 12345) and any railcar owned or operated by a private party must carry a 4 alpha character initial ending in “X” – for example, Tealinc operates JOBX 5007. Railcar bills are invoiced to the railcar mark owner regardless of who owns or leases the railcar.

• Private Railcar Marks:
Private Reporting Marks (ending in X) are issued by the AAR for non-railroad (private companies) that own railroad equipment that moves via rail. You will be required to fill out an AAR Interchange Agreement and pay the administrative fee for registration of the private reporting marks. To request the information to register private reporting marks send an email to private.marks@railinc.com.

• UMLER:
Universal Machine Language Equipment Register (UMLER) is maintained by the Association of American Railroads through their Railinc subsidiary. UMLER is basically the registration of the title to a railcar or locomotive. UMLER registration is important to many functions in the railroad industry and to car and locomotive owners. UMLER data is used to show the mechanical construction and appurtenances on a railcar and compliance with rules and regulations such as air brake tests, etc. UMLER registration also demonstrates who the lessee, lessor and owner of the railcar or locomotive is which in turn demonstrates proof of ownership and financial securitization. Provided you are transferring UMLER from one owner to the next it is a fairly simple process which can be handled directly with Railinc.

• Loading Authority (OT-5):
An application by a private car owner to place private freight cars in service on a railroad. Any Lessee, Lessor or car owner that has a railcar mark that ends in “X”, e.g. JOBX (Tealinc railcar mark) must have written permission from the railroad prior to being able to run the railcar on the railroad. Loading Authority (OT-5) is the process in which this permission is granted. If you have a multi-railroad move you should file your Loading Authority (OT-5) with the originating carrier. You can find the list of railroad persons to file with in the Official Railway Equipment Register. If you don’t have access to this list or understand how to fill out the Loading Authority (OT-5) form give us a call and we’ll help you out.

Stay informed! Each month we send to our prospective and current customers our newsletter, Class I and AAR updates, and railcar and locomotive listings.