In the movement of freight from shipper to consignee, LTL shipments are usually unloaded at terminals, taken across the dock, and re-loaded into other vehicles so as to move with other shipments traveling to similar destinations.
The cost of handling freight on the freight terminal dock is a function of time, based on the freight characteristics and dock type, as well as the unit cost per handling minute for the freight terminal where each activity occurs.
When calculating shipment cost, the specific type of cross dock handling at each terminal can be described using the Dock Handling codes:
0 = No Dock Handling (shipment stays in the same trailer)
1 = Truck to Floor or Floor to Truck Only
2 = Normal Cross Dock Handling
4 = Handling and Storage for appointments (an additional handling)
5 = Storage Only (if a storage unit cost is developed)
The default code is 2, for a normal handling. Codes 1 - 4 cause the system to calculate time from separate regression formulas for each packaging type: Unitized (1), Palletized (2) and Non-palletized (3) freight; based on handling units (pallets or loose pieces), weight (for non-palletized freight and palletized freight in some cases), and the size of the dock based on number of doors.
If more information is available, handling time can be overridden using the Dock Adjustment input item. There is also a code to override dock handling time by specifying the handling minutes per pallet or per piece in the Dock Adjustment field, if such information is available, using Dock Handling code:
6 = Minutes Per Handling Unit Override
And there are Dock Handling codes for additional work done on the dock to sort and segregate the freight, used in conjunction with the Dock Adjustment item, as follows:
7 = Only Sort/Segregate Time Available
8 = Total Cross Dock Handling Time Available
9 = Only Strip/Sort/Segregate Time (Origin)
or Sort/Segregate/Stack Time (Destination) available.
The sort and segregate codes require the user to obtain the time for handling an entire trailer of freight, reflected in the shipment data by the Stop Weight entry. The code to use (7-9) depends on the time information available as follows:
· If the entire handling time for the load (strip the trailer, sort and segregate the freight, stack in the outbound trailer) is known, select code 8, and enter that time, in minutes, as the Dock Adjustment. The system will pro-rate the total time to each shipment using the ratio of shipment weight to stop weight.
· If only the sort and segregate time is known, use code 7, and enter the time (in minutes) for sorting and segregating the entire stop weight as the dock adjustment. The system will pro-rate that time to each shipment, plus a cross dock handling from the CIS regression formulas.
· If, at origin, only the strip, sort and segregate time, but not the subsequent loading into outbound trailers, is know, use code 9. Code 9 should also be used at destination if the unloading time is not known, but the sort and segregate time and loading into the delivery trailer is available. Enter the time, in minutes, for the dock adjustment item. The system will pro-rate that time to each shipment, plus a floor to trailer (or trailer to floor at destination) handling for the shipment from the CIS regression formulas.
When the sort and segregate codes are used, a time entry must be made for the Dock Adjustment item.
Copyright (c) 2007 Transportation Costing Group, Inc.