Wednesday, July 13, 2011

Cubism

Cubic Capacity Rule means some shipments are more equal than others.

Trucking is not known as a creative business, but carriers get positively artistic when it comes to creating ways to boost revenue and make margins on a given shipment. Case in point: the Cubic Capacity Rule.

Like the DIM or dimensional weight rules used in the air freight and small package world, the Cubic Capacity Rule is a way to allow less-than-truckload (LTL) trucking companies, if your freight doesn’t weigh enough to generate the dollars they require, to charge for a calculated weight instead of the actual weight. Low density shipments, those weighing less than six lbs./cubic foot, or those that can’t have other items stacked on top of them, may very well be charged a premium for taking up excessive space in the trailer.

Ping pong balls are the classic example, but the Cubic Capacity Rule can be invoked on a wide variety of goods. The rule’s specifics are complex, and vary from carrier to LTL carrier. These charges can result in a nasty shock, or even worse, ongoing freight bills higher than expected, with explanations that are confusing. You might pay three times more on a shipment of a given weight.

As carriers struggle to boost revenue, assessorial charges take a bigger bite of your logistics dollar. For every shipment, there are options to make sure it travels as efficiently as possible. Make sure you are aware of and consider all of yours.


Kirk Shearer
President
TOTALogistix
www.totalogistix.com
800-989-0054 x103

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