This illustrates how load costs will be pro-rated to the associated shipment legs based on a blending of weight and distance. It also provides an example of how charges computed at drop stop level will be pro-rated to just the shipments being dropped at the applicable stop.
Consider the load in the following table
Shipments on Load - Weight / Distance Distribution
Shipment |
Origin |
Destination |
Direct Miles |
Weight (LB) |
|---|---|---|---|---|
MMM |
Dallas, TX |
Austin, TX |
193 |
5,000 |
NNN |
Dallas, TX |
San Antonio, TX |
270 |
12,000 |
PPP |
Dallas, TX |
San Antonio, TX |
270 |
10,000 |
QQQ |
Dallas, TX |
San Antonio, TX |
270 |
8,000 |
RRR |
Dallas, TX |
Laredo, TX |
431 |
5,000 |
SSS |
Dallas, TX |
Laredo, TX |
431 |
4,000 |
Load would follow this itinerary:
Origin |
Destination |
Miles |
Loaded |
|---|---|---|---|
Dallas, TX |
Austin, TX |
193 |
Yes |
Austin, TX |
San Antonio, TX |
78 |
Yes |
San Antonio, TX |
Laredo, TX |
158 |
Yes |
Applicable Charges
Suppose the per unit costs incurred in moving this load were:
* Unloading Charge is applicable only when total weight of all shipments being unloaded at a stop is less than 10,000 pounds.
The rating results achieved when rating this load would be:
Charge Type |
Units |
Rate |
Amount |
|---|---|---|---|
Loaded Distance |
429 Miles |
1.25 / Mile |
536.25 |
Unloading Charge – Austin |
5000 LB |
2.50 / CWT |
125.00 |
Unloading Charge – Laredo |
9000 LB |
2.50 / CWT |
225.00 |
Additional Stops |
2 Stops |
50.00 / Stop |
100.00 |
Total |
|
|
986.25 |
Note: No Unloading Charge would be applicable for the San Antonio drop because the total weight of the shipments being unloaded at this location is 30,000 pounds, well in excess of the ceiling for this charge (10,000 pounds).
The extended weight/distance associated with each shipment leg for this load would be:
Shipment |
Origin |
Destination |
Miles |
Weight (LB) |
Extended Weight/Distance |
|---|---|---|---|---|---|
MMM |
Dallas, TX |
Austin, TX |
193 |
5,000 |
965,000 |
|
|
Stop Total |
|
|
965,000 |
NNN |
Dallas, TX |
San Antonio, TX |
270 |
12,000 |
3,240,000 |
PPP |
Dallas, TX |
San Antonio, TX |
270 |
10,000 |
2,700,000 |
QQQ |
Dallas, TX |
San Antonio, TX |
270 |
8,000 |
2,160,000 |
|
|
Stop Total |
|
|
8,100,000 |
RRR |
Dallas, TX |
Laredo, TX |
431 |
5,000 |
2,155,000 |
SSS |
Dallas, TX |
Laredo, TX |
431 |
4,000 |
1,724,000 |
|
|
Stop Total |
|
|
3,879,000 |
|
|
Load Total |
|
|
12,944,000 |
The load level charges for this load would then be distributed to the shipments as follows:
Shipment |
Extended Weight/Distance - Shipment |
Extended Weight/Distance – Load |
Percentage of Load Total for Shipment |
|---|---|---|---|
MMM |
965,000 |
12,944,000 |
7.45 |
NNN |
3,240,000 |
12,944,000 |
25.03 |
PPP |
2,700,000 |
12,944,000 |
20.86 |
QQQ |
2,160,000 |
12,944,000 |
16.69 |
RRR |
2,155,000 |
12,944,000 |
16.65 |
SSS |
1,724,000 |
12,944,000 |
13.32 |
|
|
|
100.00 |
The stop level charges for this load would be distributed to the shipments as follows:
Drop Stop |
Shipment |
Extended Weight/Distance- Shipment |
Extended Weight/Distance – Stop |
Percentage of Stop Total for Shipment |
|---|---|---|---|---|
Austin, TX |
MMM |
965,000 |
965,000 |
100.00 |
|
|
|
|
100.00 |
Laredo, TX |
RRR |
2,155,000 |
3,879,000 |
55.56 |
|
SSS |
1,724,000 |
3,879,000 |
44.44 |
|
|
|
|
100.00 |
Note: Breakdown for San Antonio is not provided because stop charges are not applicable for this drop location.
The following table organizes the pro-rated costs by shipment within load:
Shipment |
Charge |
Total Load Cost |
Pct. of Total for Load |
Total Stop Cost |
Pct. of Total for Stop |
Pro-rated Cost |
|---|---|---|---|---|---|---|
MMM |
Loaded Distance |
536.25 |
7.45 |
|
|
39.95 |
|
Unloading Charge – Austin, TX |
|
|
125.00 |
100.00 |
125.00 |
|
Additional Stops |
100.00 |
7.45 |
|
|
7.45 |
|
Shipment Total |
|
|
|
|
172.40 |
NNN |
Loaded Distance |
536.25 |
25.03 |
|
|
134.22 |
|
Additional Stops |
100.00 |
25.03 |
|
|
25.03 |
|
Shipment Total |
|
|
|
|
159.25 |
PPP |
Loaded Distance |
536.25 |
20.86 |
|
|
111.86 |
|
Additional Stops |
100.00 |
20.86 |
|
|
20.86 |
|
Shipment Total |
|
|
|
|
132.72 |
QQQ |
Loaded Distance |
536.25 |
16.69 |
|
|
89.50 |
|
Additional Stops |
100.00 |
16.69 |
|
|
16.69 |
|
Shipment Total |
|
|
|
|
106.19 |
RRR |
Loaded Distance |
536.25 |
16.65 |
|
|
89.29 |
|
Unloading Charge – Laredo, TX |
|
|
225.00 |
55.56 |
125.01 |
|
Additional Stops |
100.00 |
16.65 |
|
|
16.65 |
|
Shipment Total |
|
|
|
|
230.95 |
SSS |
Loaded Distance |
536.25 |
13.32 |
|
|
71.43 |
|
Unloading Charge – Laredo, TX |
|
|
225.00 |
44.44 |
99.99 |
|
Additional Stops |
100.00 |
13.32 |
|
|
13.32 |
|
Shipment Total |
|
|
|
|
184.74 |
|
Load Total |
|
|
|
|
986.25 |