The Cost Information System contains routines to develop shipment cost when the Pickup & Delivery activity is performed by a separate cartage company.  Cartage Agents are distinguished from interline carriers as their charges are treated as an expense through the general ledger, not a revenue reduction. 

The agent's charges to your company for P & D service are calculated to develop the shipment cost.  In addition to the agent's rates themselves, overall rate terms, such as minimum charges and fuel surcharges, are set up under one or more run numbers tied to specific freight via service points or certain customers.

The agent's rates can be separate for weight groups, and separate for Pickup vs. Delivery.  The various types of rates currently supported by the system are as follows:

• Per Hundredweight: Rate in cents per hundred pounds to apply to as many weight categories as the agent specifies.  CIS Maintenance provides a text-file import capability if there are multiple sets of rates for several service areas.
• Flat Charge: A per shipment charge, in cents, for one or more weight categories.
• Rate per Cubic Foot: The rate, in cents per cubic foot, will be applied to shipment cube (weight / density).  Weight groups will be treated as cube groups.
• Percentage of Revenue: Is for a flat percent of the shipment revenue that the agent receives.  An option is available to treat weight groups as revenue ranges for different percents.
• Interline Division Table: For interline factors when agents are paid a division of revenue, based on origin and destination ZIP or Postal Code (note: this feature is for cartage agents, not for interline carrier splits, which are done via the interline profile).  A file of division factors must be supplied.  In this case, when a shipment is costed, the percent of revenue will be calculated and applied.
• Hourly Rate: Uses the same P&D performance data to develop time as used for company drivers, but will apply the agent's hourly rate rather than company unit costs.  Agent's charging by the day or week should be set up with this option as well, by reducing the rate to a per-hour basis.
• Class Rate Table: Allows for use of a text file with columns of class rates, with the first line having classes and the first column having weight groups, in pounds.
• Rate Tariff File: For agents charging discounted class rate scales, to and from a specified ZIP Code (usually the location where the freight is transferred to the agent).  The agent's charges will be calculated via the Pricing/CIS rating system, including a discount, if applicable.
• Pallet Rates: Weight group entries are treated as number of pallets, with 1 being the charge for the first pallet, and 2 being the charge for subsequent pallets.  If the freight is coded as loose pieces, an "equivalent pallets" is calculated to develop the charges.

In some circumstances, rates may be inter-mixed for different weight groups, such as per hundredweight rates up to 10,000 lbs, but an hourly rate on heavier shipments.

If your company employs a cartage agent for P & D service charging rates that are not provided for in the system, please contact TCG with the rate structure.

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