Trip Pro-Ration example: By Volume / Distance

This illustrates how trip level costs will be pro-rated to the associated loads based on a blending of total volume and fixed itinerary distance for each load on the trip. It also shows how these charges will then be distributed by the load pro-ration process to the individual shipments along with the charges computed at load level.

Consider trip consisting of four separate loads:

Load	Shipment	Origin	Destination	Direct Distance (Miles)	Volume (Cu. Ft.)
2222	AAA	San Diego, CA	Los Angeles, CA	122	1,250
2222	BBB	San Diego, CA	San Francisco, CA	522	3,500
3333	CCC	Oakland, CA	Sacramento, CA	81	1,000
3333	DDD	Oakland, CA	Portland, OR	623	3,750
3333	EEE	Oakland, CA	Seattle, WA	805	250
4444	FFF	Seattle, WA	Las Vegas, NV	1110	2,000
4444	GGG	Tacoma, WA	Las Vegas, NV	1117	2,500
5555	HHH	Las Vegas, NV	San Diego, CA	334	5,000

This trip would follow this itinerary and would require eight total days in transit:

Load	Origin	Destination	Miles	Loaded
2222	San Diego, CA	Los Angeles, CA	122	Yes
2222	Los Angeles, CA	San Francisco, CA	400	Yes
	San Francisco, CA	Oakland, CA	18	No
3333	Oakland, CA	Sacramento, CA	81	Yes
3333	Sacramento, CA	Portland, OR	577	Yes
3333	Portland, OR	Seattle, WA	193	Yes
4444	Seattle, WA	Tacoma, WA	48	Yes
4444	Tacoma, WA	Las Vegas, NV	1117	Yes
5555	Las Vegas, NV	San Diego, CA	334	Yes

Totals for this trip would be:

Load	Origin	Destination	Fixed Itinerary Distance (Miles)	Total Volume (Cu. Ft)	Extended Volume / Distance
2222	San Diego, CA	San Francisco, CA	522	4,750	2,479,500
3333	Oakland, CA	Seattle, WA	851	5,000	4,255,000
4444	Seattle, WA	Las Vegas, NV	1165	4,500	5,242,500
5555	Las Vegas, NV	San Diego, CA	334	5,000	1,670,000
	Total		2,872	19,250	13,647,000

Suppose the per unit costs incurred in moving this trip were:

Charge Type	Rate	Trip Level Charge
Loaded Distance	1.50 / Mile	No
Additional Stops	50.00 / Stop	No
Insurance	.02 / Cu. Ft.	No
Unloaded Distance	1.00 / Mile	Yes
Lodging Allowance	75.00 / Day	Yes

The rating results for the trip level charges for the trip would be:

Charge Type	Units	Rate	Amount
Unloaded Distance	18 Miles	1.00 / Mile	18.00
Lodging Allowance	8 Days	75.00 / Day	600.00
Total			618.00

The trip level charges would be distributed to the individual loads as follows:

Load	Extended Volume/Distance- Load	Extended Volume/Distance – Trip	Percentage of Trip Total for Load
2222	2,479,500	13,647,000	18.16
3333	4,255,000	13,647,000	31.18
4444	5,242,500	13,647,000	38.42
5555	1,670,000	13,647,000	12.24
	13,647,000		100.00

The following table organizes the pro-rated costs for the trip by load:

Load	Charge	Total Trip Cost	Load Percentage of Trip Total	Pro-rated Cost for Load
2222	Unloaded Distance	18.00	18.16	3.27
	Lodging Allowance	600.00	18.16	108.96
	Load Total			112.23
3333	Unloaded Distance	18.00	31.18	5.61
	Lodging Allowance	600.00	31.18	187.08
	Load Total			192.69
4444	Unloaded Distance	18.00	38.42	6.92
	Lodging Allowance	600.00	38.42	230.52
	Load Total			237.44
5555	Unloaded Distance	18.00	12.24	2.20
	Lodging Allowance	600.00	12.24	73.44
	Load Total			75.64
	Trip Total			618.00

The rating results for the load level charges would be:

Rating Results - Load 2222

Charge Type	Units	Rate	Amount
Loaded Distance	522 Miles	1.50 / Mile	783.00
Additional Stops	1 Stop	50.00 / Stop	50.00
Insurance	4,750 Cu. Ft.	.02 / Cu. Ft.	95.00
Total			928.00

Rating Results - Load 3333

Charge Type	Units	Rate	Amount
Loaded Distance	851 Miles	1.50 / Mile	1,276.50
Additional Stops	2 Stops	50.00 / Stop	100.00
Insurance	5,000 Cu. Ft.	.02 / Cu. Ft.	100.00
Total			1,476.50

Rating Results - Load 4444

Charge Type / Load	Units	Rate	Amount
Loaded Distance	1165 Miles	1.50 / Mile	1747.50
Additional Stops	1 Stop	50.00 / Stop	50.00
Insurance	4,500 Cu. Ft.	.02 / Cu. Ft.	90.00
Total			1,887.50

Rating Results - Load 5555

Charge Type / Load	Units	Rate	Amount
Loaded Distance	334 Miles	1.50 / Mile	501.00
Additional Stops	0 Stops	50.00 / Stop	0.00
Insurance	5,000 Cu. Ft.	.02 / Cu. Ft.	100.00
Total			601.00

The extended volume/distance associated with each shipment leg would be computed as follows:

Load	Shipment	Origin	Destination	Direct Distance (Miles)	Volume (Cu. Ft.)	Extended Volume/ Distance
2222	AAA	San Diego, CA	Los Angeles, CA	122	1,250	152,500
	BBB	San Diego, CA	San Francisco, CA	522	3,500	1,827,000
			Load Total			1,979,000
3333	CCC	Oakland, CA	Sacramento, CA	81	1,000	81,000
	DDD	Oakland, CA	Portland. OR	623	3,750	2,336,250
	EEE	Oakland, CA	Seattle, WA	805	250	201,250
			Load Total			2,618,500
4444	FFF	Seattle, WA	Las Vegas, NV	1110	2,000	2,220,000
	GGG	Tacoma, WA	Las Vegas, NV	1117	2,500	2,792,500
			Load Total			5,012,500
5555	HHH	Las Vegas, NV	San Diego, CA	334	5,000	1,670,000
			Load Total			1,670,000
			Trip Total			11,280,000

The charges for each load would then be distributed to the individual shipments as follows:

Load	Shipment	Extended Volume/Distance- Shipment	Extended Volume/Distance – Load	Percentage of Load Total for Shipment
2222	AAA	152,500	1,979,000	7.68
	BBB	1,827,000	1,979,000	92.32
				100.00
3333	CCC	81,000	2,618,500	3.09
	DDD	2,336,250	2,618,500	89.22
	EEE	201,250	2,618,500	7.69
				100.00
4444	FFF	2,220,000	5,012,500	44.29
	GGG	2,792,500	5,012,500	55.71
				100.00
5555	HHH	1,670,000	1,670,000	100.00
				100.00

The following table organizes the pro-rated costs for the trip by shipment within load:

Load	Shipment	Charge	Total Load Cost	Percentage of Total	Pro-rated Cost
2222	AAA	Loaded Distance	783.00	7.68	60.13
		Additional Stops	50.00	7.68	3.84
		Insurance	95.00	7.68	7.30
		Unloaded Distance	3.27	7.68	.25
		Lodging Allowance	108.96	7.68	8.37
		Shipment Total			79.89
	BBB	Loaded Distance	783.00	92.32	722.87
		Additional Stops	50.00	92.32	46.16
		Insurance	95.00	92.32	87.70
		Unloaded Distance	3.27	92.32	3.02
		Lodging Allowance	108.96	92.32	100.59
		Shipment Total			960.34
		Load Total			1040.23
3333	CCC	Loaded Distance	1,276.50	3.09	39.45
		Additional Stops	100.00	3.09	3.09
		Insurance	100.00	3.09	3.09
		Unloaded Distance	5.61	3.09	.17
		Lodging Allowance	187.08	3.09	5.78
		Shipment Total			51.58
	DDD	Loaded Distance	1,276.50	89.22	1138.89
		Additional Stops	100.00	89.22	89.22
		Insurance	100.00	89.22	89.22
		Unloaded Distance	5.61	89.22	5.01
		Lodging Allowance	187.08	89.22	166.91
		Shipment Total			1489.25
	EEE	Loaded Distance	1,276.50	7.69	98.16
		Additional Stops	100.00	7.69	7.69
		Insurance	100.00	7.69	7.69
		Unloaded Distance	5.61	7.69	.43
		Lodging Allowance	187.08	7.69	14.39
		Shipment Total			128.36
		Load Total			1669.19
4444	FFF	Loaded Distance	1747.50	44.29	773.97
		Additional Stops	50.00	44.29	22.15
		Insurance	90.00	44.29	39.86
		Unloaded Distance	6.92	44.29	3.06
		Lodging Allowance	230.52	44.29	102.10
		Shipment Total			941.14
	GGG	Loaded Distance	1747.50	55.71	973.53
		Additional Stops	50.00	55.71	27.85
		Insurance	90.00	55.71	50.14
		Unloaded Distance	6.92	55.71	3.86
		Lodging Allowance	230.52	55.71	128.42
		Shipment Total			1183.80
		Load Total			2124.94
5555	HHH	Loaded Distance	501.00	100.00	417.50
		Additional Stops	0.00	100.00	0.00
		Insurance	100.00	100.00	75.00
		Unloaded Distance	2.20	100.00	2.20
		Lodging Allowance	73.44	100.00	73.44
		Shipment Total			568.14
		Load Total			568.14
		Trip Total			5402.50