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Distance circuitry factor | i |
- Shipment size is expressed as % Full Truck Load (FTL) and via the shipment costs curve converted into a less than full truck (LTL) rate.
- This curve captures that the larger a shipment, the lower the costs per unit transported. For example, a shipment size of 50% FTL brings 72% FTL costs (or 72% FTL rate), so per each unit transported it is 1.44 times more expensive than FTL transport.
- The rate can be made region specific via the warehouse transport costs index.
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