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 level | Object | Original freight costs | Decreased freight costs | Decreased by |
|---|---|---|---|---|
| 1 | Load A | 0 | -100 | 100 |
| 2 | Shipment 1 | 0 | -50 | 50 |
| 2 | Shipment 2 | 0 | -50 | 50 |
| 3 | Shipment 1, line 10 | 0 | -25 | 25 |
| 3 | Shipment 1, line 20 | 0 | -25 | 25 |
| 3 | Shipment 2, line 10 | 50 | 25 | 25 |
| 3 | Shipment 2, line 20 | - 50 | -75 | 25 |
| 3 | Shipment 2, line 30 | 0 | 0 | 0 |
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