Negative freight costs - example 4

The total freight costs for Load A are zero. One of the shipment lines has negative freight costs, which is compensated by another shipment line with positive freight costs. The total freight costs of load A are decreased by USD 100.

Object levelObjectOriginal freight costsDecreased freight costsDecreased by
1Load A0-100100
2Shipment 10-5050
2Shipment 20-5050
3Shipment 1, line 100-2525
3Shipment 1, line 200-2525
3Shipment 2, line 10502525
3Shipment 2, line 20- 50-7525
3Shipment 2, line 30000

 

The USD 100 decrease of Load A is proportionally distributed among both shipments, USD 50 for each shipment. Similarly, for each shipment line of Shipment 1 the freight costs are decreased by USD 25.

Shipment 2, line 10: 50 / (50 + 50) * 50 = 25.

USD 50 is the original freight cost amount of shipment line 10. USD 100 (= 50 + 50) is the original amount of the shipment lines of Shipment 2. The shipment is decreased by USD 50. Shipment line 10 is decreased by USD 25.

Shipment 2, line 20: 50 / (50 + 50) * 50 = 25

For line 20, the freight cost decrease is also USD 25. This amount is subtracted from the original value of USD -50, which results in the new amount of USD -75.

Shipment 2, line 30: 0 / (50 + 50) * 50 = 0