Negative freight costs - example 1

Load A includes a shipment line with negative freight costs. The freight costs of load A are increased by USD 100.

Object levelObjectOriginal freight costsIncreased freight costsIncreased by
1Load A500600100
2Shipment 125030050
2Shipment 225030050
3Shipment 1, line 1012515025
3Shipment 1, line 2012515025
3Shipment 2, line 10300342.8642,86
3Shipment 2, line 20- 50-42.867.14

 

The USD 100 increase of Load A is proportionally distributed between both shipments. This is calculated as follows: 250 / 500 * USD 100 = USD 50. USD 250 is the amount of the original freight costs of each shipment. USD 500 is the original value of the load, which is the higher level object. The load is increased by USD 100. Each shipment is increased by USD 50.

For the shipment lines of Shipment 1 the cost increase is calculated as follows: 125 / 250 * 50 = 25.

USD 125 is the original freight cost amount of each shipment line of Shipment 1. USD 250 is the original value of the shipment. The shipment is increased by USD 50. Each shipment line is increased by USD 25.

Shipment 2, line 10: 300 / (300 + 50) * 50 = 42.86.

USD 300 is the original freight cost amount of shipment line 10. USD 350 (= 300 + 50) is the total amount of the shipment lines of Shipment 2. The shipment is increased by USD 50. Shipment line 10 is increased by USD 42.86.

Shipment 2, line 20: 50 / (300 + 50) * 50 = 7.14

USD 50 is the original freight cost amount of shipment line 20. USD 350 (= 300 + 50) is the total amount of the shipment lines of Shipment 2. The shipment is increased by USD 50. USD 7.14 is the amount by which shipment line 10 is increased.