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Rating Engine Design Guide

Carrier Freight Contract & Rate Tariff Architecture

Rate tariffs are executable contracts. Poor structure creates invoice disputes, driver settlement variance, and OR drift. This guide defines how carriers architect mileage bands, lane minimums, fuel surcharge peg steps, stop-off accessorials, and detention rules inside EXSPEEDITE multi-matrix rating.

Tariff Layer Model

EXSPEEDITE evaluates tariffs in layers: base linehaul, fuel surcharge, accessorials, and customer-specific overrides. Each layer versions independently so contract renewals do not break historical invoice reproduction.

  1. Customer contract header: effective dates, payment terms, document requirements
  2. Lane matrix: origin/destination regions, equipment type, service level
  3. Distance engine: PC*MILER or customer mandated mileage source
  4. Accessorial library: detention, stop-off, TONU, hazmat, tarp
  5. Driver pay mirror: settlement percentages tied to AR lines

Structural Components

01

Mileage bands

Define 0-100, 101-300, 301+ mile breakpoints with per-mile or flat band rates. Apply band minimum charge so ultra-short moves still cover driver time.

02

Flat lane minimums

Hard floor per lane pair regardless of calculated miles. Prevents under-rating on dense metro shuttles.

03

DOE FSC peg steps

Link surcharge table to DOE national average diesel with cent-per-mile peg increments. Auto-refresh on published DOE release dates.

04

Stop-off accessorials

Charge per additional stop with optional weight breaks. Sync driver stop pay from same tariff row.

05

Driver detention rules

Separate shipper free time from driver pay free time when contracts differ. Bill AR hourly after grace; pay drivers from CheckPoint timestamps.

Sample Accessorial Matrix (Illustrative)

CodeTriggerCustomer ARDriver AP
DETGeofence dwell > 120 min$85/hr after 2 hr free$28/hr after 2 hr free
STPStop count > 2$75 per extra stop$35 per extra stop
TONUCancel < 4 hr before pickupFlat $350Flat $150
HAZHazmat commodity flag15% linehaul uplift$50 flat

Frequently Asked Questions

What is a mileage band tariff?

Mileage bands apply flat or per-mile rates between distance breakpoints. EXSPEEDITE evaluates loaded miles against band tables with lane minimums so short hauls never rate below contract floor.

How should fuel surcharge peg steps work?

Peg steps adjust FSC when DOE national average diesel crosses configured thresholds. Carrier contracts define basis points per cent change and reset intervals weekly or monthly.

How are stop-off accessorials structured?

Stop-off charges combine flat fees per additional stop with optional weight or cube tiers. Driver settlement stop pay mirrors customer AR lines to prevent margin leakage.

How does detention differ from layover in tariffs?

Detention bills hourly after free time at shipper or receiver facilities. Layover compensates overnight holds when reload timing prevents legal HOS continuation. Both need GPS or check-in proof in the tariff notes.

Accessorial guide · FSC calculator · TMS RFP matrix