External Transportation RateTwo Modes of TransportationTruckload,TLCountry sub-divided into zones. One zone/stateexceptfor:Bigstates,suchasFloridaorNewYork(twozones)Zone-to-zone costsprovides cost per mile pertruckload betweenanytwo zonesTL cost from Chicago to Boston =Illinois-MassachusettscostpermileX ChicagoBostondistanceTLcoststructure is not symmetric3-16
3-16 External Transportation Rate Two Modes of Transportation ⚫ Truckload, TL ⚫ Country sub-divided into zones. One zone/state except for: ⚫ Big states, such as Florida or New York (two zones) ⚫ Zone-to-zone costs provides cost per mile per truckload between any two zones. ⚫ TL cost from Chicago to Boston = Illinois-Massachusetts cost per mile X ChicagoBoston distance ⚫ TL cost structure is not symmetric
ExternalTransportationRateTwo Modes of TransportationLess-Than-Truckload,LTLClassratesstandardratesforalmostallproductsorcommoditiesshippedClassificationtariffsystemthatgives eachshipmentaratingoraclass.Factorsinvolvedin determininga product'sspecificclassinclude:product density,easeor difficulty of handling and transporting,and liabilityfordamageAfterestablishingrating,identifyratebasisnumber.Approximate distance between the load's origin and destinationWiththetwo,determinethespecificrateperhundred pounds(hundred weight,or cwt)froma carriertariff table(i.e.,a freightratetable).ExceptionratesprovideslessexpensiveratesCommodity ratesare specialized commodity-specificrates3-17
3-17 ⚫ Less-Than-Truckload, LTL ⚫ Class rates ⚫ standard rates for almost all products or commodities shipped. ⚫ Classification tariff system that gives each shipment a rating or a class. ⚫ Factors involved in determining a product’s specific class include: ⚫ product density, ease or difficulty of handling and transporting, and liability for damage. ⚫ After establishing rating, identify rate basis number. ⚫ Approximate distance between the load’s origin and destination. ⚫ With the two, determine the specific rate per hundred pounds (hundred weight, or cwt) from a carrier tariff table (i.e., a freight rate table). ⚫ Exception rates provides less expensive rates ⚫ Commodity rates are specialized commodity-specific rates External Transportation Rate Two Modes of Transportation
SMC3'sCzarLiteEngine to find rates in fragmented LTL industryNationwide LTLzip code-based rate systemOffers amarket-based price list derived fromstudies of LTLpricing on a regional,interregional,andnational basisAfairpricingsystemOften used as a base fornegotiating LTLcontracts between shippers,carriers,and thirdpartylogistics providers3-18
3-18 SMC3’s CzarLite ⚫ Engine to find rates in fragmented LTL industry ⚫ Nationwide LTL zip code-based rate system. ⚫ Offers a market-based price list derived from studies of LTL pricing on a regional, interregional, and national basis. ⚫ A fair pricing system ⚫ Often used as a base for negotiating LTL contracts between shippers, carriers, and thirdparty logistics providers
Transportation Rate for Shipping4,000 lbs.4500Class1004000Class15035003000Sr250020001500100050001112344549321749190913462140DistancefromchicagoFIGURE3-7:Transportationratesforshipping4,000 Ib3-19
3-19 Transportation Rate for Shipping 4,000 lbs. FIGURE 3-7: Transportation rates for shipping 4,000 lb
Mileage EstimationEstimatelon,and lata,thelongitudeandlatitude of point a (and similarly for point b)Distancebetweenaand b·ForshortdistancesDab=69Vlona-lonb)?+(lata-latb)Forlargedistanceslata-latblonu-lonbDa-2(69)sin-)+cos(lata)xcos(latb)x(sin)sin223-20
3-20 Mileage Estimation ⚫ Estimate lona and lata , the longitude and latitude of point a (and similarly for point b) ⚫ Distance between a and b ⚫ For short distances ⚫ For large distances 2 2 D lon lat lat ab a b a b = + − 69 ( ( ) − lon ) 1 2 2 2(69) sin (sin( cos( cos( (sin( )) )) ) ) 2 2 a b a b ab a X b X lat lat lon lon D lat lat − − − = +