BUSML 5381 Chapter Notes - Chapter 4: Cubic Foot
22 Sep 2019
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Cost that customer is willing on paying in the market. Likelihood of new shipment being at destination of previous transport route/lane (prevents dead legs) Mode of transport needed (unique surcharges for each) Overhead cost (fixed) / # of miles = average overhead per mile (variable) New regulations (and costs that can result to comply) Weighing out: >35,000 lbs constitutes a truck load. Cubing out: shipment load fills up a truck load, but may have the weight of a ltl. Point to point: ltl shipments will go through multiple freight depots to keep the truck filled, while still transporting goods to where they need to be. Calculate weight per cubic foot to see the class of product. Spot market rates: initial rate based on market conditions "retail rate". Uses freight brokers to make the match between the ideal shipper to buyer needs, usually online too. Contract rates: outlined in the contract itself, includes rate per mile, surcharges and accessorial charges.
