Trucking: Price Per Hundred, fuel surcharge, straight truck

Question
Hi Jim: We have been hauling for the past year with a 24ft box/straight truck. We have had 2 contracts over that time, both paying a percentage of load, plus fuel surcharge, and both ended due to economy. We are now speaking with a company that proposes per hundred pricing, and wants us to complete a spreadsheet with the following for a select set of cities&states: VENDOR-MINRATE   VENDOR-BREAK@100LB   VENDOR-BREAK@500LB   VENDOR-BREAK@1000LB   VENDOR-BREAK@3000LB   VENDOR-BREAK@5000LB   VENDOR-BREAK@7500LB   VENDOR-CAPRATE

Can you tell us what these headings represent, especially the CapRate?

Thanks!

Answer
Sorry, I forgot the link to the article I referred you to.  This should help.  http://www.logisticsmgmt.com/article/CA6601818.html

Jim.


Maddy, here is a good article that will provide you a basic understanding of LTL rate structures.
Your prospective customer uses a little different terminology but this is how I interpret them:
VENDOR-MINRATE - Minimum charge you will accept for the smallest shipment, example $99.00.
VENDOR-BREAK@100LB - rate for shipments of 100# but less than 500#
VENDOR-BREAK@500LB  - rate for shipments of 500# but less than 1000#
VENDOR-BREAK@1000LB - rate for shipments of 1000# but less than 500#
VENDOR-BREAK@3000LB - rate for shipments of 3000# but less than 5000#
VENDOR-BREAK@5000LB - rate for shipments of 5000# but less than 7500#
VENDOR-BREAK@7500LB - rate for shipments of 7500# and over
VENDOR-CAPRATE - Truckload charge for a full truck, example $550.00.  This could also be considered the maximum you will charge if they fill the entire truck.

A word of caution about decimals:  Per hundred pricing means you are quoting a rate per 100 lbs.  Traditionally rates were stated in Cents Per Hundred Weight (cwt.)  If you are filling out a spreadsheet there is a good chance the customer wants the rates stated in dollars and cents per cwt. If they don't say you will want to clarify.

For example a rate 900 could mean 900 cents
while a rate of 9.00 would imply $9 or exactly the same thing.

If the rate was 9.00 on a minimum of 1000# the charges would be $90.00 ($9.00 * 10.00 (10 cwt.).

Hope this helps along with the article I referenced above.

Jim.