In LTL rating a deficit is a price break that SMC automaticallycalculated for the shipment based on the actual weight.

Shippers might see a Deficit line item onthe Charges Summary page in Execution. The deficit value can helpyou reconcile the shipping charges for an LTL shipment.

The following workflow shows how the deficit is calculated:

1. The shipper submits a 495-pound shipment.
2. In SMC the tariffs break down the charges by weight breaks. Thefollowing examples shows some simple weight breaks:

   0-499 pounds = $10 per pound500-999 pounds = $8 per pound1000-4999 pounds = $5 per pound

3. Sterling TMS usesthe actual shipment weight to calculate the rate:

   495 pounds x $10 per pound = $4950

4. SMC calculates the cost for the minimum weight of the next highestrange:

   500 pounds x $8 per pound = $4000

5. SMC returns the $4000 rate from the higher weight range becauseit is less than the $4950 rate from the actual weight range.
6. Sterling TMS calculates the deficit weight as 5 pounds:

   500 pounds of calculated weight - 495 pounds of actual weight = 5 pounds 

7. Sterling TMS usesthe $8 rate from the 500-999 pound range to calculate the deficitvalue as $40:

   5 pounds x $8 per pound = $40