The CIS routine for costing shipments picked up or delivered by a cartage agent stores the rates charged by the agent in the many number of ways the agent may charge (weight basis, revenue split, flat charge, cube basis, etc.) as well as any minimums and maximums.  In addition, the routine recognizes a tender cost, which is the additional cost your company incurs, to tender freight to or from the agent.

The tender cost appears just prior to the entry fields for the agent rates themselves, under the CIS Profile Maintenance item Freight Terminals, and then under the specific terminal, Cartage Agreements.  The first item is:

Weight Tendered

The tender cost can be in the form of an adjustment ratio to the agent rates, activated by making no entry (or zero) for weight tendered.  Otherwise, enter the total weight tendered to the agent to serve as the basis on which the subsequent tender cost will be allocated.

If no tender weight is entered, the next field will read:

Adjustment Ratio

This adjustment ratio can represent:

• An additional direct cost over the base charges.  For example, enter 1.03 if the agent has a 3 percent insurance surcharge.

• A discount given by the agent.  For example, enter 0.9 if the agent discounts their P&D rates by 10 percent.

• An exchange rate if the agent is foreign.  This can then be modified as the exchange fluctuates without having to continually re-calculate and re-enter new agent rates.

If there is a specific cost of tendering freight to/from the agent, enter the average total weight handled for the weight tendered, and then the subsequent field title will change to:

Tender Cost

This cost can represent:

• Stop-off payment to the linehaul driver.  For example, if the driver received $0.50 per hundredweight to unload at the agent's dock, then enter the total amount for the tender weight entry, adding fringes, for tender cost.

• A local P&D run to take freight to the agent, which can be specified by clicking on the run number box.

Carriers using cartage agents for specific geographic areas or customers should set these up in the system and/or review their data to ensure that any additional costs, besides the agent charges themselves, are being captured and reflected, using the tender cost options. 

Updated February, 2005

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