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Linehaul Charge Rating Method

Question & Answer


Question

Linehaul Charge Rating Method

Answer

Linehaul Charge Rating Method

Use the Linehaul Charge rating method to define a discountor surcharge that is calculated as a percentage of the linehaul rate.This rating method is sometimes referred to as Percent of Linehaul.

Asa best practice shippers use Linehaul Charge to define accessorialsthat are calculated as a percentage of the linehaul rate.

Used For

Linehaul rates especially forcontinuous moves and round trips. Also commonly used for fuel accessorialsthat are applied to LTL shipments.

Unit of Measurement

Percent.

Examples

The following example shows howto set up a continuous move discount using the Linehaul Charge:

  1. Define a contract section and set the Movement Type to Outbound Inboundand Interplant. The section contains theselanes:
    • Minneapolis to Chicago with a flat rate of $500
    • Chicago to Cleveland with a flat rate of $400
  2. Define a contract section and set the Movement Type to ContinuousMove. The section contains these lanes:
    • Minneapolis to Chicago. Set the Linehaul Charge to -10%.
    • Chicago to Cleveland. Set the Linehaul Charge to -10%.
  3. Create a shipment from Minneapolis to Chicago. Sterling TMS applies theflat rate of $500.
  4. Add a shipment from Chicago to Cleveland to create a continuousmove.
  5. Sterling TMS calculatesthe cost as follows:
    • The original cost of Leg 1 (Minneapolis to Chicago) was $500.
    • The original cost of Leg 2 (Chicago to Cleveland) was $400.
    • The total original cost was $900 ($500 + $400).
    • Sterling TMS multipliesthe original cost ($900) by the Linehaul Charge (10%) to calculatethe continuous move discount ($90).
    • Sterling TMS showsthe discounted linehaul rate as $810 ($900 - $90 discount).

The following example shows how to specify a continuous movediscount of 20 percent for a contract lane:

  1. Select Linehaul Charge as the rating method.
  2. Enter -20 as the rate.

The following example shows an equipment accessorial thatuses Linehaul Charge as the rating method:

  1. Define a contract lane from Minneapolis to Cleveland:
    • Select Dryvan as the equipment type.
    • Specify a flat rate of $400.
  2. Create an equipment accessorial:
    • Select Trailer/Refrigerated as the equipmenttype.
    • Select Linehaul Charge as the rating method.
  3. Assign this accessorial to the Minneapolis-Cleveland contractlane and specify a 10% surcharge.
  4. You require a refrigerated truck to take a load from Minneapolisto Cleveland. Sterling TMS calculatesthe total charge as $440:
    • $400 for the linehaul rate.
    • $40 for the equipment accessorial (10% of $400).

The following example shows a break schedule that uses LinehaulCharge as the break attribute. You would apply this break scheduleto a fuel accessorial:

FromToEnterDescription
.9411.000-33.0% discount
1.0011.060-22.0% discount
1.0611.180-11.0% discount
1.1811.240 0No discount or surcharge
1.2411.300+11.0% surcharge
1.3011.360+22.0% surcharge
"

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Document Information

Modified date:
08 December 2018

UID

ibm10752201