Use the Lane Distance rating method to calculate linehaulrates based on the direct route from the origin of the shipment toits final destination. The lane distance does not take into accountthe out-of-route distance on a multi-stop shipment.

Shippersoften select this rating method if they almost always do single-stopshipments.

Used For

Linehaul rates.

Unit of Measurement

Miles or kilometers.

Example

The following example shows how Sterling TMS calculatesthe linehaul rate based on the lane distance:

1. Create a contract lane from Minneapolis to Philadelphia. Select LaneDistance as the rating method and enter $2.00 per mileas the rate.
2. Create this multi-stop shipment:
   • Minneapolis to Chicago (400 miles)
   • Chicago to Columbus Ohio (350 miles)
   • Columbus to Philadelphia (470 miles)
3. Sterling TMS determinesthat the direct route from Minneapolis to Philadelphia is 1170 miles.
4. Sterling TMS determinesthat the actual distance of the multi-stop route is 1220 miles.
5. Sterling TMS multipliesthe lane distance (1170 miles) by the per-mile rate ($2.00) to calculatethe linehaul rate ($2340).