Understanding Applicable rates and charges for shipments for budgeting Case Study

Understanding Applicable rates and charges for shipments for budgeting - Case Study Example This is so in cases when there is a breakdown in technological forms available (Judge). For ease in determination of shipment rates and charges for the sake of effectiveness in the determined rates, it is important that the products be in the first instance classified. Classification is vital to help in the determination of optimum total charges. Optimal total shipment charges helps the shippers minimize the charges as much as possible, it also facilitates reclassification by carriers of the shipment hence submission of very different freight bills that indicates higher amounts. The classifications above are done based on the data as presented by the National Motor Freight Classification standards which are mainly used by many less than truckload(LTL) to help them in determining freight rates and total charges. Eagle electronics just like any other company operating in the highly competitive market would always wish to minimize costs as much as possible to maximize revenue. Eagle electronic would automatically go for the cheaper cost, which is that of consolidated cost at 32.55 as opposed to the individual cost 106.5. This is, therefore, the choice assuming there is no extra cost to be incurred by NT Trucking. In scenarios of transportation through shipments, there are fixed charges and flexible charges. These charges are at the same time affected by other variable charges among which we have the minimum charge. Minimum charge is derived from the minimum weight calculations to qualify for truckload classification. This weight appears as its own column in the NMFC so that the cost increases with the enlargement of the minimum weight hence qualification for the TL just after TLT qualifications. This is from the principle that lower classifications fetches lower freight charges hence minimum costs