Understanding Rate Schedules

After you set up rates, you must assign rates to a schedule. A rate schedule contains a list of the rate names or definitions that calculate the freight charge. This normally includes the basic transportation charge and all of the accessorial charges. When the system calculates freight charges, it evaluates the individual rate in the sequence that is specified in the rate schedule.

A rate name or definition must be unique within a rate schedule. That is, the same rate name cannot be used multiple times in a rate schedule. A rate schedule can contain another rate schedule instead of a rate name. When this occurs, the system uses all of the names from the referred-to rate schedule as though these rate names were in the schedule being defined. Only one level of reference to another rate schedule is allowed.

When multiple rate definition is specified on a rate schedule, the total freight charge is the sum of the charges that are calculated for each rate definition. An exception to this is a supersede rate.

After you complete the steps to set up a rate schedule, you assign a rate schedule to a routing entry. Each routing entry contains the name of a rate schedule that the system uses to calculate the payable charges for a shipment or load. The system calculates billable charges using this same schedule unless an alternate rate schedule is specified in the customer freight preference.

When you set up a rate schedule, you can also set up a supersede rate for that schedule. A supersede rate establishes a second or alternate rate for the rate schedule. This supersede rate is then used in the place of the first original rate if the supersede rate is less than or greater than the original. You determine which value (less than or greater than) is used for that rate schedule.

For example, if you transport a truckload of foam packing material, the original rate based on weight would not account for the entire truck being filled because the foam packing material weighs so little. However, you can apply a supersede rate that takes into account the volume of the shipment if the calculated volume charges are greater than the calculated weight charges. Thus, the freight charge accurately reflects the total cost of shipping a truckload of foam packing material.