For the questions below, use the following web-site which is hosted by R+L Carri

Question

For the questions below, use the following web-site which is hosted by R+L Carriers: http://www2.rlcarriers.com/rate-quote.aspx?AspxAutoDetectCookieSupport=1

Question 19: Given this example, explain the importance of knowing the correct freight class.

Question 20: Calculate the Standard Service Net Charge to ship 5,000 lbs. of Class 50 freight from Savannah, GA (31401) to Atlanta, GA (30315). Notice that below the standard service charge, R+L offers additional service levels for those customers willing to pay the extra fees. Assume you work for R+L and a very large and valued customer asks you to explain the costs that justify you charging them these additional fees. How would you respond? What costs are incurred for these additional services?

Explanation / Answer

19. In the example, freight class starts from 50.0 and goes upto 500.0. Knowing the correct freight class is extremely important. Essentially, freight class is a grading system and there are a total of 18 different freight class: 50, 55, 60, 65, 70, 77.5, 85, 92.5, 100, 110, 125, 150, 175, 200, 250, 300, 400 and 500.

Knowing the correct freight class will help you in calculating your transportation costs properly. Generally, the lower the class, the cheaper the shipping charges will be. Thus knowing the correct class (on the basis of density, ease of handling, ease of storage and other factors) will help in determining the correct transportation costs.

20. The applicable rate is $34.48 per lb. Total = 5,000 lbs*$34.48 = $1724. A discount of $1120.60 is being offered. Additions includes a fuel surcharge of $109.22. This makes the standard service net charge = 1724-1120.60+109.22 = $712.62

Additional services being offered are:

(i) Guaranteed service - Shipment is guaranteed to arrive by 5 PM on the service date. The extra charge is $120.68

(ii) Guaranteed by noon - Shipment is guaranteed to arrive by 12 noon on the service date. The extra charge is $181.02

(iii) Guaranteed hourly window - Shipment is guaranteed to arrive within hourly window on the service date. The extra charge is $241.36

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