Clipping

Ranges may be defined as clipped or not.

If a range is clipped, the system will apply the rate for the appropriate range break only to the difference between the actual number of rating units and the high end of the previous range.

For example: Assume a Range Code has range breaks at 1-100, 101-250, 251-500 and 501-1000 pounds and that clipping has been activated for the last three ranges.

Note: Clipping cannot be activated for the first range break.

Assume the rates are $1.00, $0.90, $0.80 and $0.70 per pound for each of these ranges.

If the weight for a shipment is 700 pounds, the rate will be $575.00, computed as [(100 * $1.00) + (150 * $0.90) + (250 * $0.80) + (200 * $0.70)], meaning that the rate was $1.00 for the first 100 pounds, $0.90 for the next 150 pounds (between 101 and 250), $0.80 for the next 250 pounds (between 251 and 500) and $0.70 for the last 200 pounds (from 501 to 700).

If a range is not clipped, the rate for the applicable range break will be applied to the entire number of rating units for the transaction.

Notes:

Look-ahead and look-back should not be used in conjunction with clipping.
Rating units and look-up units should be equal when clipping is activated.
Unit Adjustment Factor for the tariff charge must be 1 when using clipping.