This illustrates how load costs will be pro-rated to the associated shipment legs based exclusively on each leg’s percentage of the total weight. In this case, load pro-ration will not consider the distance that each shipment needs to move.
Consider this load:
Shipment |
Origin |
Destination |
Direct Distance (Miles) |
Weight (LB) |
|---|---|---|---|---|
WWW |
Atlanta, GA |
Jacksonville, FL |
352 |
10,000 |
XXX |
Atlanta, GA |
Orlando, FL |
445 |
20,000 |
YYY |
Atlanta, GA |
Tampa, FL |
461 |
5,000 |
ZZZ |
Orlando, FL |
Tampa, FL |
83 |
15,000 |
Load will follow this itinerary:
Origin |
Destination |
Distance (Miles) |
Loaded |
|---|---|---|---|
Atlanta, GA |
Jacksonville, FL |
352 |
Yes |
Jacksonville, FL |
Orlando, FL |
143 |
Yes |
Orlando, FL |
Tampa, FL |
83 |
Yes |
|
Total |
578 |
|
Suppose the per unit costs incurred in moving load were:
Charge Type |
Rate |
|---|---|
Loaded Distance |
1.05 / Mile |
Additional Stops |
75.00 / Stop |
The rating results achieved when rating load would be:
Charge Type |
Units |
Rate |
Amount |
|---|---|---|---|
Loaded Distance |
578 Miles |
1.05 / Mile |
606.90 |
Additional Stops |
2 Stops |
75.00 / Stop |
150.00 |
Total |
|
|
756.90 |
The load level charges for load would be distributed to the shipments as follows:
Shipment |
Weight (LB) – Shipment |
Weight (LB) – Load |
Percentage of Total Weight |
|---|---|---|---|
WWW |
10,000 |
50,000 |
20.00 |
XXX |
20,000 |
50,000 |
40.00 |
YYY |
5,000 |
50,000 |
10.00 |
ZZZ |
15,000 |
50,000 |
30.00 |
|
Total |
|
100.00 |
Note: Even though there would never be more than 40,000 pounds on the truck at any one time (on the Orlando to Tampa leg), the total weight of all shipments moved would be 50,000 pounds. Transportation Manager will distribute the load costs based on each shipment’s percentage of the total weight of 50,000 pounds.
The following table presents the pro-rated costs by shipment within load:
Shipment |
Charge |
Total Load Cost |
Percentage of Total for Load |
Pro-rated Cost |
|---|---|---|---|---|
WWW |
Loaded Distance |
606.90 |
20.00 |
121.38 |
|
Additional Stops |
150.00 |
20.00 |
30.00 |
|
Shipment Total |
|
|
151.38 |
XXX |
Loaded Distance |
606.90 |
40.00 |
242.76 |
|
Additional Stops |
150.00 |
40.00 |
60.00 |
|
Shipment Total |
|
|
302.76 |
YYY |
Loaded Distance |
606.90 |
10.00 |
60.69 |
|
Additional Stops |
150.00 |
10.00 |
15.00 |
|
Shipment Total |
|
|
75.69 |
ZZZ |
Loaded Distance |
606.90 |
30.00 |
182.07 |
|
Additional Stops |
150.00 |
30.00 |
45.00 |
|
Shipment Total |
|
|
227.07 |
|
Load Total |
|
|
756.90 |