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  7. Car Order
Operations

Car Order

Definition

A formal request by a shipper to a railroad for a specified number of empty cars of a particular type to be spotted by a certain date. Car orders are the mechanism through which shippers access the car supply. Railroads fulfill car orders based on availability and priority rules.

Related Terms

Car Supply

The availability of empty railcars of a specific type to meet shipper demand at a given time and location. Car supply tightness occurs when demand for a particular car type exceeds the fleet's availability, leading to loading delays. Railroads manage car supply through fleet procurement, repositioning, and market-based allocation.

Spotting

The act of placing a railcar at a specific loading or unloading position at a customer's facility. A car is considered spotted when it is in position and available for the shipper's use. The date and time of spotting often marks the beginning of free time for demurrage purposes.

Empty Return

The process of repositioning an empty railcar after it has been unloaded, either back to the car owner, to a new loading point, or to a storage location. Empty movements generate no revenue and are a significant cost component for railroads. Optimization of empty returns is a key factor in fleet management.

Private Car

A railcar owned by a shipper, leasing company, or third party rather than by a railroad. Private cars are used by the owner to transport their own goods or are leased to shippers for dedicated use. The owning railroad receives car hire when private cars travel on foreign lines.

More in Operations

Dwell TimeIntermodal TrainBottleneck RoutingBad OrderReciprocal SwitchingMileage Equalization