Scenario: Carrier service surcharges
In this scenario, the carrier service provider applies surcharges across all routes. Each route is defined by a pair of origin or destination postal codes. You can calculate costs for multiple different types of surcharges such as fuel, environmental, or extra. The rate calculations vary for the different surcharges. The surcharges are applied to compensate for extra expenses that are accrued.
Calculating costs for carrier service surcharges
In the following scenario, UPS global provides services across the following routes, where the shipping costs are devised as follows:
- Route A: Los Angeles to San Francisco
- Shipping costs: 10 USD
- Route B: Texas to Arizona
- Shipping costs: 15 USD
- Route C: New York to Boston
- Shipping costs: 15 USD
As a next step, US World delivery decides to apply the following surcharges across all routes:
- Fuel
- A fixed fuel surcharge of 3 USD.
- Environmental
- A fixed environment surcharge of 5 USD.
- Extra
- An extra percentage surcharge of 2%.
As a result, the following rate calculations now apply:
- Route A: Los Angeles to San Francisco
- 10 USD basic shipping costs + 3 USD + 5 USD + (10*2/100) surcharge = 18.2 USD total shipping cost
- Route B: Texas to Arizona
- 15 USD basic shipping costs + 3 USD + 5 USD + (15*2/100) surcharge = 23.3 USD total shipping cost
- Route C: New York to Boston
- 20 USD basic shipping costs + 3 USD + 5 USD + (20*2/100) surcharge = 28.4 USD total shipping cost