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There is three most popular ways of charges for freight movements.
(1)Flat rate - Where a trucking company agrees to make a shipment for a certain amount
(2)Per Mile - This is where a shipper agrees to make a shipment for a certain amount per miles traveled.
(3)Per Hundred Weight or CWT
This is where a trucking company bases all shipments on the weight that is shipped. It is a formula, utilized mainly by the steel industry but, it is still made or calculate on the miles traveled. The only difference it has over the per mile is the more weight shipped the higher the cost. Most shipments are based on either 40K or 45K pounds as a base.
Third party logistics make a profit of paying to the company or owner operator a percentage of the revenue they are paid for a load. The industry standard is 80 percent payout, So for every hundred dollars of revenue the broker or logistics company pays eighty dollars. The is an exception to this rule though. There are some that no matter what the revenue is, and they move they load for a lessor price keep the difference which can be sometimes much more than the industry standard. I hope I answered your questions. If you have any more please feel free to ask away. |
