Load Pro-Ration example – by weight

This illustrates how load costs will be pro-rated to the associated shipment legs based exclusively on each leg’s percentage of the total weight. In this case, load pro-ration will not consider the distance that each shipment needs to move.

Consider this load:

Shipment

Origin

Destination

Direct Distance (Miles)

Weight (LB)

WWW

Atlanta, GA

Jacksonville, FL

352

10,000

XXX

Atlanta, GA

Orlando, FL

445

20,000

YYY

Atlanta, GA

Tampa, FL

461

5,000

ZZZ

Orlando, FL

Tampa, FL

83

15,000

Load will follow this itinerary:

Origin

Destination

Distance (Miles)

Loaded

Atlanta, GA

Jacksonville, FL

352

Yes

Jacksonville, FL

Orlando, FL

143

Yes

Orlando, FL

Tampa, FL

83

Yes

Total

578

Suppose the per unit costs incurred in moving load were:

Charge Type

Rate

Loaded Distance

1.05 / Mile

Additional Stops

75.00 / Stop

The rating results achieved when rating load would be:

Charge Type

Units

Rate

Amount

Loaded Distance

578 Miles

1.05 / Mile

606.90

Additional Stops

2 Stops

75.00 / Stop

150.00

Total

756.90

The load level charges for load would be distributed to the shipments as follows:

Shipment

Weight (LB) – Shipment

Weight (LB) – Load

Percentage of Total Weight

WWW

10,000

50,000

20.00

XXX

20,000

50,000

40.00

YYY

5,000

50,000

10.00

ZZZ

15,000

50,000

30.00

Total

100.00

Note: Even though there would never be more than 40,000 pounds on the truck at any one time (on the Orlando to Tampa leg), the total weight of all shipments moved would be 50,000 pounds. Transportation Manager will distribute the load costs based on each shipment’s percentage of the total weight of 50,000 pounds.

The following table presents the pro-rated costs by shipment within load:

Shipment

Charge

Total Load Cost

Percentage of Total for Load

Pro-rated Cost

WWW

Loaded Distance

606.90

20.00

121.38

Additional Stops

150.00

20.00

30.00

Shipment Total

151.38

XXX

Loaded Distance

606.90

40.00

242.76

Additional Stops

150.00

40.00

60.00

Shipment Total

302.76

YYY

Loaded Distance

606.90

10.00

60.69

Additional Stops

150.00

10.00

15.00

Shipment Total

75.69

ZZZ

Loaded Distance

606.90

30.00

182.07

Additional Stops

150.00

30.00

45.00

Shipment Total

227.07

Load Total

756.90

See Also