Question & Answer
Question
About LTL Discounts
Answer
About LTL Discounts
Shippers often negotiate steep discounts off their tariffagreements with LTL carriers.
Shippers might arrange discounts of 50 percent to 85 percent offthe published tariff rate based on the volume of LTL shipments theydeliver using this carrier. When you define a discount in your LTLcontract section you specify the percentage off the tariff rate.
For example consider an 80.5 percent discount:
- Enter 80.5 in the FAK Discount field ofyour LTL contract section.
- The tariff rate for a shipment is $1000.
- The actual shipment rate is $195. (80.5% of $1000 is $805 and$1000 - $805 = $195)
You define the FAK discount for each section of an LTL contract.By default this discount is used for all lanes in that section. Ifyou want you can specify direct discounts and indirectdiscounts for specific lanes.
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Modified date:
08 December 2018
UID
ibm10756195