INTL704-Mod-04-Activity Calculate Trucking Rates Adnan Mehdi 301091381 PDF

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Freight Forwarding Calculations on Trucking Rates...

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INTL 704

Course Code: Course Name:

Global Logistics

Activity: Calculating Trucking Freight Rates Student Name : Adnan Mehdi Student ID :

301091381

1. Cargo weight is 980 lbs Dimensions are 280” x 27” x 30” Answer: Step 1: Determine the actual weight of the shipment 980 lb x 1 skids = 980 lb Step 2: Determine the volume weight of the shipment. (280” x 27” x 30”x1)/1728*10 Volume weight = 1312.50 lb Step 3: Determine the chargeable weight. Actual weight = 980 lb Volume weight = 1,312.50 lb Chargeable weight is the volume weight = 1,312.50 lb. Note: Chargeable weight is higher of the actual vs. the volume weights. Step 4: from the rate sheet, determine the rate and then calculate the charges. Chargeable weight is 1,313 lb. Customer is located in Toronto, shipment to be delivered to London.

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Bracket (+1000) = CAD $19.60/100 lb, therefore 1,313 lb * $19.60/100 lb = CAD $257.39 Bracket (+2000) = CAD $17.64/100 lb, therefore 2000 lb * $17.64/100 lb = CAD $352.80 Therefore, it is convenient to stay in the bracket of +1000. Note: This trucking charge is over the minimum charge of CAD $70.00, therefore the freight charge is CAD $133.12 a. What is the rate breakpoint? Answer: 1,800 lb 1000 2000 19.60 17.64

Breakpoint:

= 2000 X 17.64 / 19.60 = 1,800 lbs.

b. What is the chargeable weight? Chargeable weight is 1,313 lb. c. What is the rate and freight charge to ship from Toronto to London ON? CAD $19.60/100 lb 2. Cargo weight is 466 lbs Dimensions are 48” x 48” x 48” Answer: Step 1: determine the actual weight of the shipment 466 lb x 1 skids = 466 lb Step 2: determine the volume weight of the shipment. (280” x 27” x 30”x1)/1728*10 Volume weight = 640 lb Step 3: determine the chargeable weight. Actual weight = 466 lb © 2020 CENTENNIALCOLLEGE.CA All rights reserved.

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Volume weight = 640 lb chargeable weight is the volume weight = 640 lb. Note: Chargeable weight is higher of the actual vs. the volume weights. Step 4: from the rate sheet, determine the rate and then calculate the charges. Chargeable weight is 640 lb. Customer is located in Toronto, shipment to be delivered to St Catherines, ON. Bracket (+500) = CAD $20.80/100 lb, therefore 640 lb * $20.80/100 lb = CAD $133.12 Bracket (+1000) = CAD $18.20/100 lb, therefore 1000 lb * $18.20/100 lb = CAD $182.00 Therefore, it is convenient to stay in the bracket of +500. This trucking charge is over the minimum charge of CAD $65.00, therefore the freight charge is CAD $133.12 a. What is the rate breakpoint? 875 lb 500 1000 20.80 18.20

Breakpoint:

= 1000 X 18.20 / 20.80 = 875 lbs.

b. What is the chargeable weight? Chargeable weight is 640 lb a. What is the rate and freight charge to ship from Toronto to St Catherines, ON? CAD $20.80/100 lb

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3. From Exercise 4.6: Cargo weight is 3,480 lbs Dimensions are 48 in x 40 in x 36 in x 12 skids Details: 12 skids of fresh cut flowers (in 144 cartons) Dimensions of each skid are 48 in x 40 in x 36 in Weight of each skid is 290 lb Routing is Toronto to Niagara Falls Value for carriage is CAN $25,500.00 Shipper is Can-Flower Ltd., Toronto Consignee is Niagara Floral Ltd. Actual weight: 3,480 lb Volume weight: 4,800 lb Chargeable weight: 5,000 lb Freight charge: CAN $907.20 Weight break: CAN $831.50 a. What is the rate breakpoint rounded to the nearest 100 lbs?

4400lb (rounded) 2000 18.90

5000 16.63

Breakpoint:

X = 5000 X 16.63 / 18.90 = 4399.47 lbs.

b. What is the chargeable weight? Chargeable weight: 5,000 lb c. What is the rate and freight charge to ship from Toronto to Niagara Falls? © 2020 CENTENNIALCOLLEGE.CA All rights reserved.

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Freight charge: CAN $907.20 d. The Bill of Lading has an “X” in the column for DG. Why is that a mistake and why should it be removed? Based on the special rates provided by CIFFA - Logistics Canada Trucking Inc. it is evident that these are for Non-Hazardous Cargo only. The X is only used to mark under DG column if the cargo has dangerous goods. Given this, the marking was a mistake and should be removed. e. There is no insurance purchased by the shipper in this example. How much will the shipper lose if the cargo is destroyed by an act of God?

The carrier shall not be liable for loss, damage or delay to any of the goods described in the bill of lading caused by an Act of God. If there is no insurance purchased the shipper shall loose the entire amount of value of cargo CAD $25,500.

If the carrier is found liable for that damage (above) through their own negligence, how much of the above amount will the carrier be required to pay the shipper?

If the carrier is found liable for any damage through their own negligence the value shall be computed on the basis of the following:

(a) The value of the goods at the place and time of shipment, including the freight and other charges if paid, or

(b) Where a value lower than that referred to in paragraph (a) has been represented in writing by the consignor or has been agreed upon, such lower value shall be the maximum liability.

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In addition to the above, there remains a maximum liability that a carrier shall be responsible for under paragraph (a) or (b) mentioned above which shall not exceed $2.00 per pound (or $4.41 per kilogram) computed on the total weight of the shipment unless a higher value is declared on the face of the bill of lading by the consignor.

f.

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CIFFA - Logistics Canada Trucking Inc. Special Rate, FAK, Non-Hazardous Cargo Only From/to: Terminal Toronto Location Oakville Burlington Hamilton Guelph Cambridge Kitchener St. Catherines Welland Brantford Woodstock Niagara Falls Fort Erie London Chatham Windsor Sarnia Ajax Bowmanville Coburg Trenton Belleville Kingston Brockville Cornwall Newmarket Barrie Orillia Midland Owen Sound

Min 40.00 45.00 50.00 50.00 50.00 55.00 65.00 70.00 55.00 60.00 75.00 85.00 70.00 95.00 100.00 125.00 45.00 55.00 65.00 85.00 95.00 85.00 125.00 100.00 50.00 55.00 65.00 65.00 55.00

LTL 16.00 18.00 20.00 20.00 20.00 22.00 26.00 28.00 22.00 24.00 30.00 34.00 28.00 38.00 40.00 50.00 18.00 22.00 26.00 24.00 38.00 34.00 50.00 40.00 20.00 22.00 26.00 26.00 22.00

+500 12.80 14.00 16.00 16.00 16.00 17.60 20.80 22.40 17.60 19.20 24.00 27.20 22.40 30.40 32.00 40.00 14.40 17.60 20.80 27.20 30.40 27.20 40.00 32.00 16.00 17.60 20.80 20.80 17.60

+1000 11.20 12.60 14.00 14.00 14.00 15.40 18.20 19.60 15.40 16.80 21.00 23.80 19.60 26.60 28.00 35.00 12.60 15.40 18.20 23.80 26.60 23.80 35.00 28.00 14.00 15.40 18.20 18.20 15.40

+2000 10.08 11.34 12.60 12.60 12.60 13.86 16.38 17.64 13.86 15.12 18.90 21.42 17.64 23.94 25.20 31.50 11.34 13.86 16.38 21.42 23.94 21.42 31.50 25.20 12.60 13.86 16.38 16.38 13.86

+5000 8.87 9.98 11.09 11.09 11.09 12.20 14.41 15.51 12.20 13.31 16.63 18.85 15.52 21.07 22.18 27.72 9.98 12.20 14.41 18.85 21.07 18.85 27.72 22.18 11.09 12.20 14.41 14.41 12.20

+10000 6.21 6.99 7.76 7.76 7.76 8.54 10.09 10.87 8.54 9.31 11.64 13.19 10.87 14.75 15.52 19.40 6.99 8.54 10.09 13.19 14.75 13.19 19.40 15.52 7.76 8.54 10.09 10.09 8.54

NOTES:

 Rates shown are Canadian Dollars/100 lb ($/cwt)  Freight density is based on 10 lb/ft3  Truckload- and half-truck-load rates available upon request 

Effective September 1, 2016.

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