SC 301 LTL Break Even Cwt Drill 1) TL Carriers Charge per Mile b/c it's up to "us" to fill truck 2) LTL Carriers use a rate table to Charge by Weight and per Mile 3) Example of LTL Carrier Rate Table Rate/Cwt $15 S14 Min Lbs 100 500 1000 2000 5000 10000 Max Lbs 500 1000 2000 5000 10000 20000 If ship't Ibs are: 400 800 1800 4000 8000 18000 $13 $12 $11 $10 Cwts are: 4 8 18 40 80 180 Cost is: $60 $112 $234 $480 $880 $1,800 4) A TL carrier will charge us $1 mile and our shipment is 1000 miles and the shipment weight is 13,000 lbs = 130 Cwts We have the option to use the TL carrier to make this shipment OR We can use the LTL carrier who will charge us per the table above 5) Which carrier should we use? (LTL or TL?) 6) Why? 7) Using the table above--At what Weight (Or Cwt) would it be better to switch from LTL to TL when the cost to ship TL is: LTL B/Even Wt or Cwt a) b) c) TL Cost $1,300 $1,500 $1,800 Type your Answers in the Group Assignment fo a) = b) = c) = And 8) Formula for calculating LTL Breakeven Cwt is: the Formula for #8