PRICING PRIVATE FREIGHT CAR SERVICE: AN ANALYSIS OF TRANSPORTATION USE AND THE PROBLEM OF STANDBY CAR CAPACITY

The ICC objective in formulating car compensation is to reimburse owners for the transport-related costs of car ownership. In the case of private cars, the primary issue in defining transportation use is allocation of the cost of standby capacity. The dual function of most private cars--transportation and storage--is not a justification for the owner's assuming all surplus costs but for excluding surplus costs generated from the storage function (oversized fleets). Since private freight cars now constitute one-fifth of the fleet and the ratio is growing, the compensation problem is also increasingly complicated. A car-hire model is developed that incorporates a standard utilizaton ratio--a concept originally developed by AAR Per Diem Task Force I and that has the capability of partitioning surplus days of peak load and oversized fleet categories into the present AAR car-hire framework. A second modification of this ratio adjusts the length of the peak period.

  • Corporate Authors:

    Association Interstate Commerce Comm Practitioner

    1112 ICC Building, 12th Street & Constitution Avenue, NW
    Washington, DC  United States  20423
  • Authors:
    • Tyworth, J E
  • Publication Date: 1979-9

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00301824
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 15 1980 12:00AM