When you select a destination from within the Best Rack screen, a freight cost will be calculated based on the settings that you define for that destination through Freight Management. This freight cost is based on the following:
Base Freight = (# Gallons X Freight Rate for the mileage range in which the distance between the terminal and destination falls)
Total Freight = Base Freight + (Base Freight X % surcharge) + Misc. Charge
You can set a Minimum Gallon for gas, diesel, and mixed gallons. If the actual gallons to be transported are below the minimum, the system will use the minimum gallons limit to calculate freight charges.
The Freight Rate reflects the carrier’s charge for transporting product from the origin terminal (where product is lifted) to the destination terminal (where product is delivered). Rates can be set up as a fixed amount or an amount that is applied to a range of miles. One rate might apply to deliveries that fall within the 0 to 10 mile range, while another rate applies to deliveries that fall within the 11-20 mile range. Freight Management lets you set up different freight rates for gasoline and diesel products. EFM users can create multiple freight rate tables and assign those rates to multiple carriers, drivers, and delivery areas.
The Surcharge reflects current transportation costs. Freight Management gives you the flexibility to adjust this charge as the market changes with user-defined start/end dates and times without needing to change your freight rate table. EFM users can create multiple surcharge sets.
Miscellaneous Charges can be used for specifying flat charges, such as tolls. These charges are applied only once per Best Rack result, not for each product in the result. Miscellaneous Charges are tied to a specific destination.