Comparing Freight Rates & Classes

Comparing Freight Rates & Classes

Motor carrier rate calculation

• Comparison: Briefly compare the operational characteristics and rate differences between TL and LTL trucking services.

• Lone Star Petrochem, Inc. (LSP) is shipping 1000 lbs., packaged chemical products prepaid from Houston, TX (77098), to Columbus, OH (43085). The products are packed into one single shipment.

You are asked by the LSP’s VP of logistics to evaluate the freight rates of this Houston-Columbus transportation. You need to use FedEx and UPS internet freight services to estimate potential cost.

FedEx LTL at: http://www.fedex.com/us/freight/main/

UPS LTL at: http://www.ltl.upsfreight.com/

A generic packaging for the LSP shipment will be classified as the 150 freight class. A better packaging can lead to the 92.5 class. The best packaging method can get the 70 class.

Compare FedEX and UPS total charges at different freight classes. Which carrier will you choose? Provide sufficient explanations.

Carrier

UPS

FedEX

Remarks

70 Class
92.5 Class

150 Class
• If additional service options are selected (e.g. hazmat, notification to consignees, etc.), how the options will impact the freight charges?
Assume that your company is shipping bulk cargo (e.g. petroleum and petrochemical products) nationwide to your customers. Develop a plan to obtain shipping rates for potential modes of transportation and how you intend to allocate the products into different modes.

Assume that your company is shipping general cargo (e.g. grocery, textile, furniture, appliance, etc.) nationwide to your customers. Develop a plan to obtain shipping rates for potential modes of transportation and how you intend to allocate the products into different modes.
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