Occasionally it is necessary for a shipment to be made which requires that the receiver pays for the product before it can be released to the receiver by the carrier. There are many reasons for this, but one example would be poor credit risk of the receiver. These shipments are unusual and therefore require some very special notations on bills of lading to insure that the carrier is fully informed about how to arrange for the payment prior to delivery. Since proper notices were not given at the time the shipment was picked up and the bill of lading executed, failure to properly inform the carrier can result in some very substantial losses, with no recourse to the carrier.

Execute appropriate lease arrangements for privately-owned rail cars. Rail cars can be placed into a carrier service, which provides better control of shipping as well as assurance that the equipment is clean (and that the shipper knows the equipment is clean). These services also let the shipper know the location of his fleet at all times. Rail carriers must approve such placements into service, since they are obligated to pay a shipper a fee for having furnished an equipment entity. The cars are free of demurrage as long as they are on a private track, and must be placarded to reflect the owner of the car and the lessee if the car is under lease. Failure to show appropriate ownership or lease on the car while on privately-owned tracks can subject that car to demurrage payments to the railroad.

Collect proper mileage allowance for privately-owned rail cars. Railroads are required to compensate private owners of railroad equipment-the private owners are supplying a transportation instrumentality which the railroads are legally required to furnish themselves. Payment is completed through a process of mileage allowances, which vary with many factors-the largest being the value of the car furnished. Mileage allowances are paid by each railroad directly to the specified agent or the owner, and only for the miles traveled on each railroad. This is a ready made opportunity for errors in the actual miles traveled and actual dollars paid for each car. The monitoring of these payments is important and can be easily done by setting up a standard computer program to cover the mileage and the payments expected on the moves of each car. Errors are then corrected with the reporting railroad and a reconciliation of mileage and dollars developed.

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