Full Service Leasing

 

UTLX Subleasing Service

UTIL-I-FAX®: A computerized system to improve railcar fleet utilization

Union Tank Car Company offers UTIL-I-FAX® subleasing service to help shippers improve railcar utilization and to provide a reliable source for short-term cars.

Free subleasing service for lessees and owners

Since Union Tank Car introduced UTIL-I-FAX subleasing service in 1970, hundreds of railcar lessees and owners have used the program regularly to improve fleet balance and utilization. They have achieved these benefits either by offering surplus cars for short-term subleasing, or by locating needed cars on the Fax Sheet availability list.

Originally, UTIL-I-FAX served the UTLX tank car market only. Today, operating on a much broader scale, the service is available at no cost to all railcar shippers who find that they temporarily have an excess supply of cars or need equipment on a short-term basis to handle special shipping situations.

Frequent listings publicize available cars

When participating shippers notify the UTIL-I-FAX system that cars are available for subleasing, details are entered into the computer and compiled on the UTIL-I-FAX sheet. The Fax Sheet, mailed every other week to major railcar users, contains a description of each car, including DOT class, capacity, last contents, truck size, unloading features and interior coating information.

Sales team expands your subleasing markerplace

To best serve shippers who need short-term cars, UTIL-I-FAX representative maintain close communications with the nationwide sales force of Union Tank Car Company and its affiliates in Canada and Mexico. If a need develops for a tank car or a freight car type that is not listed on the Fax Sheet, a representative will conduct a search for conveniently located equipment that will match your requirements.

When the UTIL-I-FAX system finds a lessee for your idle cars, a subleasing agreement is prepared. Normally, your responsibilities are suspended over the sublease term. UTIL-I-FAX maintains the records and provides the services-including invoicing and collecting receivables. Most of the risks associated with subleasing are assumed by Union Tank Car until your cars return upon expiration of the agreement.

Make UTIL-I-FAX work for you

If your railcar fleet needs short-term equipment or if you have idle cars to list on the Fax Sheet, call your UTLX district sales representative or the UTIL-I-FAX sales office in chicago. Upon request, you will receive regular mailings of the Fax Sheet and be able to monitor available car listings. Let the UTIL-I-FAX system help you optimize your fleet utilization and reduce total distribution costs.

How does UTIL-I-FAX work?

  • Step 1
    • Railcar Listing
    Company ABC advises Union Tank Car of its wish to list certain railcars for a stated time period.

  • Step 2
    • Computer input
    ABC's cars are listed in the UTIL-I-FAX computer.

  • Step 3
    • Fax Sheet
    Cars are summarized with others on the FAX SHEET which is regularly updated and mailed to major railcar users.

  • Step 4
    • Inquiry
    Company XYZ reads about ABC's cars in the FAX SHEET and contacts the nearest UTLX district sales office or its UTIL-I-FAX representative in Chicago.

  • Step 5
    • Cars Ordered
    UTIL-I-FAX reaches an agreement with ABC & XYZ on rates and terms and XYZ orders cars.

  • Step 6
    • Subleasing Agreement
    UTIL-I-FAX prepares agreements with ABC & XYZ to confirm the terms.

  • Step 7
    • Cars Forwarded
    UTIL-I-FAX orders ABC's cars to XYZ's location.

  • Step 8
    • Responsibility Transferred
    UTIL-I-FAX begins charges to XYZ as agreed. ABC's lease continues to mature but ABC is free of the expense, responsibility and most of the risks normally associated with subleasing.

  • Step 9
    • Cars in Use
    Cars move in XYZ's service. Administrative details are handled by the UTIL-I-FAX system.

  • Step 10
    • Cars Returned
    XYZ returns cars to ABC. If the cars are still surplus, Company ABC may request that they be listed again.

Subleasing through UTIL-I-FAX® can increase the efficiency of your leased or owned railcar fleet. You can utilize UTIL-I-FAX today...

  • If your owned or leased railcar equipment sits idle for more than three consecutive months each year.
  • If you are not subleasing your surplus cars because of the legal, credit or insurance risks involved.
  • If you are paying broker's fees to list your idle cars for sublease.
  • If your subleasing program is mired in paperwork or if you do not staff people qualified to handle subleasing in-house.
  • If your plant operating people complain about idle cars choking sidings or if your cars are running up storage bills.
  • If your Markering Department calls for short-term cars to supplement the fleet during peaks in shipping activity.
  • If your need for railcar equipment is seasonal and does not allow you to realize the economies of long-term lease rates.
  • If you want the security of subleasing through a railcar leasing company with over 100 years of fleet utilization know-how.

 

Legal Information

All contents of this web site copyright © 2000  Union Tank Car Company - All rights reserved.