Truck Shipment Example: One-Time 8. Using the same LTL shipment, find online one-time (spot) LTL rate quotes using the FedEx LTL website 0.2889 ton q = frac Class-Density Relationship 0.2889(2000) 578 lb = = = no. = 0.2889(2000) 15 cartons units 40 • Most likely freight class: 40 lb/unit 3 4. 4444 lb/ft s = = 3 9 ft /unit Class 0 2 0 • What is the rate quote for the reverse trip from Gainesville (32606) to Raleigh (27606)? 59
Truck Shipment Example: One-Time • The National Motor Freight Classification (NMFC) can be used to determine the product class • Based on: 1. Load density 2. Special handling 3. Stowability 4. Liability 60
Truck Shipment Example: One-Time • CzarLite tariff table for O-D pair 27606-32606 100 1 hundredweight 100 lb ton cwt = = = = 2000 20 Tariff (in $/cwt) from Raleigh, NC (27606) to Gainesville, FL (32606) (532 mi, CzarLite DEMOCZ02 04-01-2000, minimum charge = $95.23) $ 61
Truck Shipment Example: One-Time 9. Using the same LTL shipment, what is the transport cost found using the undiscounted CzarLite tariff? 0.2889, 200 q = class = 0, 95.23 disc = MC = { } B B B arg i = q ≤ q < q q i i 1 i − { } B B B = arg q ≤ q < q q 2 2 1 { } B arg 0.25 0.2889 0.5 2 = q ≤ < = 2 { } { } B ( ) 1 max ,min ( , )20 , ( , 1)20 c = − disc MC OD class i q OD class i + q tariff i { } ( ) { } 1 0 max 95.23,min (200,2)20(0.2889), (200,3)20(0.5) = − OD OD { } { } max 95.23,min (127.69)20(0.2889), (99.92)20(0.5) = { } { } max 95.23,min 737.76, 999.20 $737.76 = = 62
Truck Shipment Example: One-Time 10. What is the implied discount of the estimated charge from the CzarLite tariff cost? c − c tariff LTL disc = c tariff 4719 737.76 584.23 − 3224 = 737,76 1638 20.81% = 999 $ • What is the weight 638 break between the rate breaks? TC tariff w/o Break ( , 1) OD class i + W B TC tariff q = q i i ( , ) OD class i 0.25 0.5 1 2.5 5 ton 99.92 (0.5) 0.3913 ton = = 127.69 63
Truck Shipment Example: One-Time ( ) , c = R wt zone • PX: Package Express chrg PX – (Undiscounted) charge c PX based = { } max , (lb) wt wt wt chrg act dim rate tables, R , for each service (2- actual weight (1 to 150 lb) wt = day ground, overnight, etc.) act – Rate determined by on chargeable 3 l × w d × (in ) (lb) weight , wt chrg , and zone wt = dim 3 (in / lb) sf – All PX carriers (FedEX, UPS, USPS, DHL) use dimensional weight , wt dim , , length, width, depth (in) l w d = – wt dim > 150 lb is prorated per-lb rate , actual cube l ≥ w l × w d × ≥ – Actual weight 1 – 70 lb (UPS, FedEx home), 1 – 150 lb (FedEx commercial) 3 shipping factor (in / lb) sf = – Carrier sets a shipping factor , which 3 12 , invers e of density = s is min cubic volume per pound – Zone usually determined by O-D = 139 FedEx (2019) distance of shipment 3 12.43 lb/ft (Class 85) s = – Supplemental charges for home delivery, excess declared value, etc. 3 194 USPS 8.9 lb/ft = s = 64
Truck Shipment Example: One-Time • (Undisc.) charge to ship a FedEx Standard List Rates (eff. Jan. 7, 2019) single carton via FedEx? 3 40 lb, 9 ft wt = cu = act 532 mi 4 d = zone = × × carton actual cube l w d = Note: No Zone 1 3 3 l w d 9 12 15,552 in 32 27 18 × × = × = = × × (usually < 50 mi local) 15,552 l w d × × 111.9 lb wt = = = dim 139 sf = { } max , wt wt wt chrg act dim { } max 40,111.9 112 lb = = ( ) , c = R wt zone PX chrg ( ) R 112,4 $64.2 7 = = 65
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