You load a trailer with cargo items such as pallets and packages. The pallets and packages are from different forwarding orders from your customer. According to the agreement, you want to settle for delivering the trailer unit and not for delivering individual forwarding orders. You agree a set of rates that pass on to the customer the benefit of consolidating orders that have a common destination into a single trailer unit.
For example, you agree a rate of USD 4,000 to deliver a trailer unit to a location. You use a single trailer unit to deliver 2 forwarding orders (FWO1 and FWO2). FWO1 weighs 14,000 kg and FWO2 weighs 10,000 kg. You settle with the customer at the level of trailer unit. The following table describes how the system calculates the settlement amount:
Charge Type | Calculation (USD) | Charge (USD) |
---|---|---|
Trailer-unit charge | 1 x 4,000 | 4,000 |
Settlement amount | Not applicable | 4,000 |
In contrast, for example, you agree with your customer that you do not settle on the basis of an execution criteria such as trailer unit, and instead settle on the basis of each individual forwarding order (the default setting in the Settlement Basis field). The following table describes how the system calculates the settlement amount:
Charge Type | Calculation (USD) | Charge (USD) |
---|---|---|
Haulage FWO1 | 14,000 Kg X 0.2 cents / kg | 2,800 |
Haulage FWO2 | 10,000 Kg X 0.2 cents / kg | 2,000 |
Settlement amount for FWO1 and FWO2 | Not applicable | 4,800 |