Asset Lease

This page is accessed via Contract and Rate Management > Contract Management > Asset Lease.

Use this page to record lease details for assets.

Equipment Use Cost

Equipment Use Cost is a key component for private cars during the decision process between Private and RR owned cars. This can be modeled with OTM as weighted cost for an accessorial that is constrained by equipment group. However, this is not robust enough for private owned cars. The equipment use cost of a private car for a round trip has two components, independent of each other. First, is lease cost (for example, $6,000/year or $16.5/day per boxcar) that is privately executed/settled between the shipper and a car leasing company. Second, is turnaround days (example, 60 days for equipment to be resumed again). This varies by lane, commodity carried and equipment. The total equipment use cost for one round trip is $990 (i.e., equipment use cost = lease cost per day ($16.5/day) * number of turnaround days (60days)).

Turnaround time = dwell time at shipper for loading + trip + dwell time for unloading + empty return trip.

The turnaround time includes dwell time at shipper for loading (example, 6 days) + loading trip (example, 20 days) + dwell time at customer for unloading (example, 14 days) + empty return trip (example, 20 days - for a total of 60 days). The average turnaround days is captured in the Equipment Average Turnaround Days page. The variable fields include lane, commodity and equipment. The active value is the time element in days. If a manufacturer is shipping using hopper cars and takes cars to a customer, the customer may keep certain cars longer because they consume different products at different rates. So you do not have to enter this data, OTM has wild cards for commodity and equipment types. You can setup broad lanes. This way there is always a default value for turnaround days. The Geo hierarchy rule uses the most specific record before a more generic record.

You can model the equipment use cost for a private owned cars in the following ways:

1. In OTM, you can model this equipment use cost as weighted cost for an accessorial to rate geo that is constrained by equipment type or group and by commodity. An RBI can retrieve the average turnaround days from the table (equipment average turnaround time) based on the lane, equipment group, and commodity. The value from the RBI is multiplied by a flat charge value on the accessorial. This allows you to use assets that are not in OTM. You can make it even more generic by substituting the equipment group constraint with an equipment group profile.
2. A more specific approach is to get the charge (lease cost) from the asset itself. This asset lease is used for this. The value of an asset is time dependent based on a specific lease. if there are short term leases, say for a year, the rate could change when the new lease takes effect. OTM looks at the lease by first identifying the asset using initial and number or equipment GID.

Adding Lease Details

1. Enter a Lease ID.
2. Optionally, enter a Lease Description for the lease.
3. Enter an Effective Date and an Expiration Date.
4. Enter a Lease Type.
5. Enter an Ownership Code and Owner Name to identify the owner of the leased asset.
6. Enter the Lessee and Lessor information. The lessee is the company which grants the lease. The lessor is the company to which the lease is granted.
7. Enter the Lease Charge per Day.
8. Enter the Registered Mileage Charge and the mileage charge unit.

Equipment

This section is for entering leased equipment assets.

Note: You may have a lot of equipment assets associated with a lease. For performance purposes, a query property will limit results returned: glog.query.limit.glog.server.query.powerdata.LeaseEquipmentQuery. The default is 100. If there are more than 100 equipment assets associated with an asset lease, then a message displays that it has exceed the limit and a URL to the Lease Equipment power data page is provided. Using this page, you can add or delete equipment associated with the asset lease.

1. Enter an Equipment Type ID. Click Save.
2. Enter additional equipment types if necessary. Click Save after each addition.
3. When done, click Finished.