Question & Answer
Question
LTL Shipment Charges
Answer
LTL Shipment Charges
The Charges Summary page provides a detailed breakdownof LTL shipment costs. You can view the following information in theRate Summaries table and Charge Detail table:
- The linehaul rate per hundredweight
- The total linehaul charge without any discount
- The deficit if one was used to calculate the charges
- The discount that was applied to the shipment
- The freight classes of the items in the shipment
- The minimum charge if it was used to calculate the cost
LTL Linehaul Charges
The Charge Detail table of the ChargesSummary page shows the cost of the shipment before the discount isapplied. Sterling TMS displaysthe following information:
- The weight shown in hundredweight (CWT)
- The rate per hundredweight
- The total linehaul rate
For example consider a 3000-pound shipment that uses a singlefreight class. The Charge Detail table displays the following data:
- Rating Method: Weight
- Number of Units: 30 CWT
- Rate: $50
- Amount: $1500
Sterling TMS processesthe total linehaul rate as follows:
- Divide 3000 pounds by 100 to get 30 CWT.
- Multiply the 30 CWT by the $50 rate to get the $1500 total amount.
In the Rate Summaries table Sterling TMS displays therated charges and the vouchered charges differently:
- Rated Charges
Forthe Rate Summary (Rated Charges) Sterling TMS displays thelinehaul rate for each freight class (FCL) that was used to rate theshipment.
For example:
- Some items in the shipment are rated as Freight Class 65.
- Some items in the shipment are rated as Freight Class 92.5.
- Sterling TMS displaystwo rows of linehaul rates one for each freight class.
- Vouchered Charges
Forthe Rate Summary (Vouchered Charges) Sterling TMS displays asingle row that shows the total linehaul charge. This total chargeincludes:
- The sum of the linehaul charges for each freight class in theshipment
- The deficit amount that was calculated for the shipment
LTL Deficit Charges
If a deficit was applied to an LTLshipment the Charge Detail table displays the cost savings. For example:
- A shipment weighs 497 pounds.
- The SMC Rateware system calculates the rate as if the shipmentweighed 500 pounds. This approach lets the shipment qualify for alower rate which uses the minimum rate for the next highest weightbreak.
- Sterling TMS displaysthe 3-pound deficit and shows how much the shipper saved by usingthe minimum rate from the next highest weight break.
LTL Discount Charges
TheCharges Summary page displays the tariff discount for the LTL shipment.The Charge Detail table contains a single row that shows the followinginformation:
- The percentage discount off the LTL tariff rate.
- The total discount applied to the shipment. This dollar valueis shown in parentheses to show that it is a negative number.
For example:
- The linehaul rate is $1000.
- The discount is 70 percent.
- Sterling TMS showsthe discount as ($700.00).
LTL Freight Classes
An LTL shipment can contain items fromone or more freight classes. The Code columnin the Charge Detail table lists the freight class used to rate theshipment.
This freight class might be different from the freightclass submitted with the shipment. When shippers define the LTL contractsection they can set up a feature called Specified Mapping.
Forexample:
- The shipper sets up the specified mapping in the LTL contractsection. The section specifies that Freight Class 250 will be ratedas Freight Class 200.
- The shipper submits an LTL shipment and assigns all the itemsas Freight Class 250.
- Based on the specified mapping Sterling TMS submits FreightClass 200 to SMC to rate the shipment.
- The Code column of the Charge Detail table displays FreightClass 200.
LTL Minimum Charges
When shippers define an LTL contractsection they can specify a minimum charge:
- If Sterling TMS usesthe minimum charge for a shipment the minimum charge is displayedon the Charges Summary page instead of the calculated linehaul rate.
- The Code and Description columns of the Charge Detail table showthat the entry is a Minimum Charge.
LTL Accessorial Charges
TheCharges Summary page displays the accessorial charges that are assignedto an LTL shipment. Each accessorial charge is displayed as a separaterow in the Charge Detail table.
For example:
- Most LTL shipments use a fuel accessorial.
- The carrier might add an unplanned accessorial such as a redeliveryor storage charge.
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Document Information
Modified date:
08 December 2018
UID
ibm10751869