Rate Bases
- Megan Stanage (Unlicensed)
The Rate Bases page allows you to create or edit rate bases.
A rate base allows LTL carriers to calculate the gross freight charges of a specific shipment before discounts are factored in. For every 100 pounds shipped, there is an associated cost, which equates to the gross charges or rate base.
Rate bases can differ depending on location and carrier.
Select a Rate Base Type from the drop-down list to filter displayed results:
- General
- Deficit
Create or Edit Rate Base
General Rate Base
A general rate base uses the weight and freight class to find a specific record in the general rate table and a per-hundred rate.
Select General from the Rate Base Type drop-down list and click New to create a general rate base or Edit to edit a general rate base.
This opens a pop-up window where you can enter the following details:
FIELD | DESCRIPTION |
Name | The rate base name. |
FAK | Turn on this toggle to mark this rate base as Freight All Kinds, indicating there is no associated class.
|
Add Rate Break | Click this button to enable a Name and Maximum Weight field so that you can add a rate break. General rate base breaks work with "less than or equal to" functionality. Enter the maximum weight for each tier to create your breaks. Important This should be a "per hundred" rate. |
Click Manage Rate Details on your new rate base to configure the details.
Click New to add class, rate, and break details.
Note
This example does not have the FAK toggle turned on so you will create a record for every class.
Save your table records. You can then use this rate base to calculate shipment costs.
Example
You have a 495-pound shipment (see 1 in screenshot below).
You have a freight class of 70 (see 2 in screenshot below).
Your weight breaks are:
0-499 pounds = $10 per hundred pounds
500-999 pounds = $8 per hundred pounds
1000-1500 pounds = $2 per hundred pounds
Your freight classes are:
- 55 = minimum rate of 50
- 60 = minimum rate of 60
- 65 = minimum rate of 100
- 70 = minimum rate of 125
Calculate the rate by looking at your weight breaks and classes (see 3 in screenshot below).
495 pounds x $10 = $4950 $4950 / 100 pounds = $49.50
You will use the $49.50 rate for your shipment.
Deficit Rate Base
A deficit rate base uses the weight and freight class to find an initial record and per-hundred rate. You can then calculate the cost of shipping at the next highest tier. You have to calculate using the minimum weight of the next tier, not your actual weight. You can continue calculating through the weight tiers to find the lowest rate.
Select Deficit from the Rate Base Type drop-down list and click New to create a deficit rate base or Edit to edit a deficit rate base.
This opens a pop-up window where you can enter the following details:
FIELD | DESCRIPTION |
Name | The rate base name. |
| Max Weight | Enter the maximum weight that any of your break points can be set to. |
FAK | Turn on this toggle to mark this rate base as Freight All Kinds, indicating there is no associated class.
|
Add Rate Break | Click this button to enable a Name and Minimum Weight field so that you can add a rate break. Deficit rate breaks work with "greater than or equal to" functionality. Enter your minimum weight for each tier to create your breaks. Important This should be a "per hundred" rate. |
Click Manage Rate Details on your new rate base to configure the details.
Click New to add class, rate, and break details.
Note
This example has the FAK toggle turned on so you will create one record because there are no classes to configure.
Save your table records. You can then use this rate base to calculate shipment costs.
Example
You have a 495-pound shipment (see 1 in screenshot below).
Your weight breaks are:
0-499 pounds = $10 per hundred pounds
500-999 pounds = $8 per hundred pounds
1000+ pounds = $5 per hundred pounds
You calculate the rate using the actual shipment weight (see 2 in screenshot below):
495 pounds x $10 = $4950 $4950 / 100 pounds = $49.50
Then you calculate the cost for the minimum weight of the next tier (see 3 in screenshot below):
500 pounds x $8 = $4,000 $4,000 / 100 pounds = $40
Then you calculate the cost for the minimum weight of the next tier (see 4 in screenshot below):
1000 pounds x $5 = $5,000 $5,000 / 100 pounds = $50
Deficit rating allows you to use the lowest rate calculated from all tiers so you can use the $40 rate from the second tier because it is the best price.
Delete Rate Base
Select the desired record and click Delete.
Click OK on the confirmation pop-up window to confirm the deletion.
Copy Rate Base
Select the desired rate base and click Copy.
A duplicate is created with a timestamp appended to the end of the name. You can adjust the name and description on the copy.
Copying is useful if multiple (but similar) rate bases are needed.
Import Rate Base
Select your rate base type and click Import to import a rate base from an Excel spreadsheet.
Select the Excel file with postal codes, classes, rates, breaks, etc., and click Upload.
Note
See Load Values for LTL Rating Engines for more information on the required data and format.
If successful, you will see a message detailing the number of bases added.
Back on the Rate Bases page, you will now see the rate bases and their breaks.
Note
FAK stands for Freight All Kinds. A checkmark indicates there is no class associated for that rate base.
Click Manage to open a detailed view of the rate base. You can edit the breaks, if needed.
The import creates base records as well as a Rate Master that is tied to the rate bases.
