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Rate Offering Type

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Rate Offering Type
Standard Rate Offering Types | Related Topics
This page is accessed via Contract and Rate Management > Power Data >
Contracts > Rate Offering Type.
Note: This page is for advanced users only.
You can define a new Rate Offering Type, control what fields appear in the
Rate Offering Manager, and define the order in which rate attributes are
used when calculating cost. The offering type determines what attributes
are available for a rate offering.
A service provider is not required for the following rate offering types
because of the attributes associated with them: LTL-BASE, LTL-SMC, and
AIR-TACT-RATE.
1. 1. Enter a Rate Offering Type ID.
2. 2. Enter a Rate Offering Type Name.
3. 3. Use the Geography Base Type field to specify:

Lane - the offering type is lane-based

Zone - the offering type is zone-based

XDock - the offering type is cross dock-based.

4. 4. Enter the Rate Attribute ID you want to associate with the Rate
Offering Type ID. These associations control what fields appear in the
Rate Offering Manager after you select an Offering Type.
5.

Note: If you are defining a rate offering type to use the RatewareXL
rating engine, both Rate Attribute ID fields on this page must be set to
EXTERNALRATINGENGINE.

6. 5. In the Sequence Number field, enter an integer to set the order in

which Oracle Transportation Management applies the Rate Attribute when
calculating costs. Oracle Transportation Management applies the Rate
Attribute with the lowest sequence number first.For instance, if a
shipment costs $150 plus a $60 accessorial fee, and there is a minimum
charge of $200, use the sequence number to ensure that the accessorial
fee of $60 is applied first for a total cost of $210. If the minimum charge
is applied before the accessorial fee, a charge of $200 plus $60 would be
applied for a total cost of $260.
7. 6. Rate Basis options you can use to construct rates. Use this section to
configure only those rate basis options that you want to appear as
available choices in the list fields that appear on the Rate Cost page for
Rate Record. By default all rate basis options appear for most of the
Public Rate Offering Types with the exception of NON-GEOGRAPHY which

is configured to display only those rate basis options that support that
rate offering type. If you have administrator access you can edit any of
the public rate offering types and configure which rate basis options you
want to appear. Select each rate basis option and save it in the grid.
You can also configure the rate basis description that appears in the list
using the Rate Record Cost Operand.
Standard Rate Offering Types
The rate offering type determines what kind of rate you are creating.
Remember that a Rate Offering Type has no inherent meaning. It is
defined by the Rate Attributes joined to it. Without attributes it is not valid
for rating. Rate Attributes can be combined into an Offering Type. We have
done that "as examples" for a few public Rate Offering Types.
AIR
Select this rate offering type if you want to set rates for air travel. Air
travel includes passenger, commercial, and cargo planes. Oracle
Transportation Management also uses this data in planning to create
shipments that require air transportation.
DEMURRAGE
Used when defining demurrage rules.
HANDLING
Use Handling to define charges incurred by time spent at a cross-dock or
consolidation pool. Some cross-docks and pools charge for their services.
Select Handling here, and then set an exact charge in the rate record.
INTRMDL
Intermodal has the same attributes as TL. Although this is the same as TL,
you can configure them to be different and that is easier if they are
different Rate Offering Types from the beginning.
LTL (Less Than Truck Load)
A quantity of freight less than that required for the application of a
truckload rate. Usually less than 10,000 pounds and generally involves the
use of terminal facilities (such as cross-docks and consolidation pools) to
break and consolidate shipments. Discounts cannot be used with this rate
offering type. To apply a discount to an LTL rate, you must select LTL-Base
instead (see below).
LTL rates are usually weight-based and depend on moving the shipment
from one place to another. For example, one rate may be charged from
New York City to Philadelphia, and another rate could then be charged for
moving the shipment from Philadelphia to Los Angeles.
LTL-BASE
Select LTL-Base if you want to define a base LTL cost and then apply a
discount (in an LTL-Master).
LTL Base is the parent of a rate record where you enter LTL costs. After

creating a rate offering of type LTL-Base, you must:

create another rate offering with a type of LTL-Master

associate the LTL-Master to the LTL-Base via the Rate Attributes page.

The LTL-Master rate contains the discount.

LTL-MASTER
LTL-Master links to an LTL-Base, LTL-SMC, or ROADWAY-TIMECRITICAL. The
LTL-Master has a rate record that defines the discount.
LTL-SMC
LTL-SMC is a kind of LTL-Base that pulls rate costs from an external rating
engine called Rateware (referred to as SMC) instead of you defining them
on the Rate Costs page.
Rateware performs rate lookups and calculations while using multiple tariff
tables. Oracle Transportation Management can request those rates and
make them part of rate offerings within the rate manager.
There is a rate attribute "SMC RATE SHIP UNITS" that, if set, allows you to
use the ship unit weight instead of line item weights whenever there is a
National Motor Freight Classification (NMFC) code supplied directly on the
ship unit. If the ship unit does not have an NMFC code, the rating engine
will use the lines for that particular shipment. This is used when the SMC
rating link encounters a Master or Base rate whose rate offering type
includes the above specified rate attribute.
LTL-TIERED
The same as LTL except that it allows for tiered rating.
NON-GEOGRAPHY
Only use this rate offering type to model rates that support Non-Freight
Related Charges that are assigned to a job. This type of rate will have no
geography attributes specified on the rate record and the rate cost should
not use detailed shipment rate basis options that cover attributes such as
shipment stop, shipment equipment, distance, etc., since non-freight
related charges are created as shipments that do have this data.
RAIL
Use Rail if this rate covers train travel. Rail rates are typically weightbased and depend upon moving from one place to another.
Rail rates are almost always based on commodity because of the
marketing department assignments at major carriers. The most common
commodities moved by rail are automotive (vehicles and parts), coal and
heavy minerals, agricultural products, chemicals, forest products (paper,
lumber, misc. box car), metals (steel), and intermodal. The way each
group gets credit for their sales is by product codes that are required for
shipping. These are the STCC codes. STCC is Standard Commodity
Classification Codes. Intermodal rates are usually per container or trailer
rates since the commodity is typically FAK (freight all kinds).

Rates for commodities may be regulated by the government. Public rates

for regulated commodities are called tariffs. Private rates for commodities
are contracts. Contracts are always cheaper than tariffs since there is a
negotiation for a better rate depending on some annual volume
guarantee. Rates for non-regulated commodities are published in Circulars
and special deals that can be done instantly are called quotes. These
quotes are confidential and do not have to be publicly disclosed. There is
some blurring between a quote and a non-regulated contract as some
quotes can cover long term deals.
Rail rates are usually set up in one of the following ways:

Origin to Destination
Region to Region

Zip Code to Zip Code

Mileage Based

The actual area covered by this rate and the cost are defined within an
associated rate record.
ROADWAY-TIMECRITICAL
ROADWAY-TIMECRITICAL is a kind of LTL-Base that pulls rate costs from
Roadway's web-based LTL rating engine.
Roadway's engine can rate line items using NMFC classification codes
only, and only for LTL and Time Critical LTL shipments. Time critical rates
are those with required pickup and delivery time constraints.
ROADWAY-TIMECRITICAL GUAR
Reserved for future use.
SPOT
Use spot rates to create rates quickly. Creating a spot rate is quicker than
creating normal rates, since the entry screen is simpler. However, these
rates are still saved to the database as real rates, but flagged as spot
rates. They can be turned into real rates by copying the rate record and
selecting a valid rate offering type. The new Spot Rate page incorporates
all the elements of the current multi-tab entry into one screen. It also
enables you to add remarks and reference numbers.
To create spot rates, you need a service provider and a rate offering with a
rate offering type of "Spot rate". Creating a spot rate prompts you for the
service provider and the rate offering, if multiple rate offerings exist with a
type of 'Spot rate' that the spot rate is to be created against.
TL (Truck Load)
The truck load offering type is used for rates that only cover ground travel
via vehicular transport. Truckload type transport usually connotes 48 or 53
foot equipment and uses a rating structure similar to one of the following:

Point A to point B flat rate.

Area A to area B (or even Point A to area B). Areas can be

defined as a state, zip range or standard point location code (SPLC) range.
These can be flat rate or an applicable per mile rate that only applies to
and from a particular geo hierarchy specified in the rate record.
Per mile. This can be defined as point or area to area or to anywhere. TL
carriers often base their per mile rates on things that affect how much
they want to service a given area.
TL rates are usually weight-independent. The only restriction is that the
carrier may refuse to pull a load if it is overweight. 46,000 pounds of
freight is the usual limit in the US, and some areas of Canada allow for
loads up to 80,000 pounds. If the shipment meets these restrictions, then
weight is usually not taken into account when assigning cost. You are in
essence paying to rent the entire truck or trailer. The shipment goes from
your door to the consignee's door. If your shipment does not fill an entire
truck or trailer, consider using an LTL (see below) rate instead.
TL-TIERED
The same as TL except that it allows for tiered rating.
VESSEL
Use this offering type to set rates from one port to another port. Vessel
rates are usually set up as a flat rate, but this may vary since space is
usually reserved on the boat for each package or container, and you must
pay for the space even if you do not get to the dock in time to ship your
items.
ZONE-BASED
Select this type to create zone-based rates. Typically, zone-based rates
cover shipments up to 150 pounds and are based on moving from one
zone to another, as defined by you or the carrier. For example, if you want
to create a rate that is applicable for travel from anywhere on the West
Coast to anywhere on the East Coast, you would select this rate offering
type, and then select the applicable rate zone when you create your rate
record.