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.

*DID YOU KNOW? Tealinc provides rail fleet support for railcars leased and/or managed by Tealinc. Inquire about our Rolling Stock Management Agreement and learn how we provide administrative services (UMLER, OT-57 support, equipment tracking and railcar tracing, expedite railcars through bad order, assist with out of route movements, provide cycle times and dwell time reports, provide inspection services to include into-service, out-of-service, pre- and post-lease or purchase, repair invoice audit, dispute and payments, escrow account services for paying all maintenance, preventative maintenance programs… you name it. We’re here to make your rail transportation experience as smooth as possible so you can focus on the core of your business.

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. Railinc now has an easy to use form that you can fill out, just click here.

• 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.

• Damaged and Defective Car Tracking (DDCT):
Damaged and Defective Car Tracking (DDCT) is a web-based application hosted by Railinc. It allows Users (Handling Carriers, Car Owners, Repair Shops, Scrap Facilities, and Storage Locations) to access real-time information about cars that have been bad ordered for defects, cars headed for scrap or have been involved in a derailment. Defective cars are handled in accordance with AAR Interchange Rule 1, 96 and 108. Damaged/Derailed cars are handled in accordance with Rule 107. Any damaged car that can be returned to service is handled under Rule 95 where paperless defect cars are created to document known damage. This reporting tool is a centralized system that allows Users to enter or query data on damaged and defective cars. Handling Carriers, can create incidents based on their inspections for cars on their property and report back to the Car Owner in a timely manner. Car Owners, can better manage their cars and provide home shop disposition. Repair Shop, Scrap and Storage Facilities can manage the flow of equipment in and out of their yard.

• Loading Authority (OT-55):
Per Railinc: “Loading Authority OT-57 replaces Loading Authority OT-5.  OT-5 is being retired effective January 2, 2020. The Loading Authority OT-57 system provides a centralized, paperless process for registering private freight rail equipment and access to controlling entity (shipper, owner, or lessee) contact information and storage information. It facilitates the potential placement of private freight rail equipment at specified storage locations on a railroad.” If you need assisting filling 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.