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Examples of Assistance Calculations

Examples of Assistance Calculations

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Example A

Details Shipper A

Calculations

  1. Conversion to a wharf to wharf freight rate
  2. Conversion to a TEU equivalent wharf to wharf freight rate
  3. Conversion to a Route G or S equivalent wharf to wharf freight rate per TEU
  4. Calculate Notional Wharf to Wharf disadvantage and class of shipper
  5. Calculate standard weight assistance
  6. Calculate heavy weight assistance, if applicable
  7. Convert assistance payable per TEU to assistance payable per 9m trailer
Commodity Paper Products
Route Devonport to Melbourne
Transport Unit 9m trailers
Weight 22 tonnes per trailer
FCL/LCL FCL Basis (44m3)
Quantity 10 trailers
Freight Price Freight cost $15,000
Freight Task Door to Wharf

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Conversion to a wharf to wharf freight rate

Door to Wharf Freight Rate (per trailer)
($15,000/10 Trailers)

 $1,500 per trailer

Less
Adjustment for Door to Wharf task (Adjustment of $230 for DW and WD task, $460 for DD task per clause 18)

 $230 per unit
Notional Wharf to Wharf Freight Rate (per trailer) $1,270 per trailer

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Conversion to a TEU equivalent
Notional Wharf to Wharf Freight Rate per Trailer $1,270 per trailer
Divide by
Relative size of a 9m trailer to a TEU
(9m trailer/6.1 container = 1.475)
 1.475
Wharf to Wharf TEU equivalent freight rate
($1270/1.475 = $861)
 $861 per TEU

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Conversion to a Route G or S equivalent
Notional WW Rate
(for Devonport-Melbourne)		 $861 per TEU
Divide by
Scaling Applicable (per Schedule 2 scaling factor table)		 1.0
Notional Wharf to Wharf
(route G or S equivalent)		 $861 per TEU

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Calculation of NWW
Notional Wharf to Wharf $861 per TEU
Less
Road Freight Equivalent (per subclause 20.2)		 $281 per TEU
Notional WW Disadvantage (NWW) $580 per TEU
Class of Shipper
(per subclause 20.3)		 Class 2
Calculation of Notional Entitlement
NWW Plus Fixed Intermodal Cost
($50 at each end of WW task)		 $100 per TEU
Notional Entitlement (NE) $680 per TEU

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Standard weight Assistance

Per Assistance Formula: (FC + MWW/2 + 0.75(NWW-MWW/2)

Max. NE of Class 1 Shipper: FC + (MWW/2) being, $100 + $335.50 = $435.50

Plus Proportion of NE of Class 2 Shipper: 0.75 (NWW-MWW/2) being, 0.75 * ($580-$335.50) = $183.38

 $619.00 per TEU

Per Shortcut Formula in Schedule 3

Standard Assistance Dry Freight - Class 2 Shipper
0.75WW-$26.875 being, 0.75 * $861-$26.875

 $619.00 per TEU

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Adjustment to Heavy Weight Assistance
Standard Weight Assistance $619.00 per TEU

Heavy Weight Adjustment Factor
(applies to cargo with a stowage factor of 1.1m3 or less per tonne)

44m3/22 tonnes gives a stowage factor of 2m3/tonne

 N/A
Heavy Weight Assistance N/A

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Conversion of Standard Assistance per TEU to Assistance per 9m Trailer
Standard Weight (or Heavy Weight Assistance) $619.00 per TEU

Total Assistance Payable per Trailer

TEU Conversion Factor x Standard Weight or Heavy Weight Assistance, being:
1.475 (9m trailers per TEU) x $619per TEU

 $913.025 per Trailer
Total Assistance Payable
10 Trailers x $913.025 per trailer		 $9130.25

Net Freight Cost
(Freight Cost less Total Assistance Payable)

$15,000-$9130.25

 $5869.75

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Example B

Details Shipper B

Calculations

  1. Conversion to a TEU equivalent (FCL) freight rate
  2. Conversion to a wharf to wharf freight rate per TEU
  3. Conversion to a Route G or S equivalent wharf to wharf freight rate per TEU
  4. Calculate Notional Wharf to Wharf disadvantage and class of shipper
  5. Calculate standard weight assistance (FCL basis)
  6. Calculate heavy weight assistance (FCL basis), if applicable
  7. Convert assistance payable per TEU (FCL basis) to assistance payable per tonne or cubic metres
  8. Calculate standard weight assistance (LCL basis)
Commodity Potatoes
Route Hobart to Melbourne
Transport Unit LCL
Weight 7 tonnes
FCL/LCL 15 cubic metres (LCL)
Quantity Part container
Freight Price Freight cost $2,400
Freight Task Door to Door

Conversion to a TEU (FCL) equivalent

Average Capacity for a TEU 30 cubic metres or 21 tonnes:

30m3/15m3 = 2 or 21 tonnes/7 tonnes = 3

Therefore container would reach full utilisation at 30m3 . This would produce a TEU equivalent rate of 2 x present freight rate.

 2 X $2,400 = $4,800

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Conversion to a Wharf to Wharf rate
Door to Door Freight Rate per TEU ($4800 /1 container) $4,800 per TEU
Less
Adjustment for Door to Door task (Adjustment of $230 for DW and WD task, $460 for DD task per clause 18)		 $460 per TEU
Notional Wharf to Wharf Freight Rate $4,340 per TEU

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Conversion to a Route G or S equivalent freight rate
Notional WW Rate (for Hobart-Melbourne) $4,340 per TEU
Scaling Applicable (per Schedule 2 scaling factor table) 1.3
Notional Wharf to Wharf (route G or S equivalent) $3,338.46 per TEU

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Calculation of NWW
Notional Wharf to Wharf $3,338.46 per TEU
Less
Road Freight Equivalent (per subclause 20.2)		 $281 per TEU
Provides - Notional WW Disadvantage (NWW) $3,057.46 per TEU
Class of Shipper (per subclause 20.3) Class 4
Calculation of Notional Entitlement
NWW Plus Fixed Intermodal Cost
($50 at each end of WW task)		 $100 per TEU
Notional Entitlement (NE) $3,157.46 per TEU

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Standard weight Assistance

Per Assistance Formula:
(FC + MWW/2 + 0.75(MWW/2) + 0.5(MWW/2)) That is:
FC + (MWW/2) being, $100 + $335.50 = $435.50
Plus 0.75(MWW/2) being, 0.75 * $335.50 = $251.63
Plus 0.5 (MWW/2) being, 0.5 * $335.50 = $167.75

 $854.88 per TEU
Per Shortcut Formula in Schedule 3:
Standard Assistance Dry Freight Class 4 Shipper
(Fixed amount payable to a class 4 shipper is $855)		 $855 per TEU

Adjustment to Heavy Weight Assistance
Standard Weight Assistance (FCL Basis) $855 per TEU
Heavy Weight Adjustment Factor
(applies to cargo with a stowage factor of 1.1m3 or less per tonne)
30m3/14 tonnes gives a stowage factor of 2.143m3/tonne		 N/A
Heavy Weight Assistance N/A

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Conversion back to LCL tonnes or cubic metres assistance
Standard Weight Assistance (FCL Basis) $855 per TEU
LCL Adjustment factor (cubic metres for FCL in this instance 30m3. Therefore assistance per m3 is equal to $855/30 = $28.50 per m3) $28.50 per m3

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Calculate standard (or heavy) weight assistance for LCL consignment
Standard Weight Assistance (LCL Basis)15m3 x $28.50 per m3 $427.50 per TEU
Total Assistance Payable on LCL Equivalent
(No TEUs * Standard LCL Assistance per TEU)		 $427.50
Net Freight Cost
$2,400-$427.50		 $1,972.50

Example C

Details Shipper C

Calculations

  1. Convert to a TEU equivalent freight rate for a FCL (188 Lambs)
  2. Convert to a wharf to wharf freight rate per TEU
  3. Convert to Route G or S equivalent wharf to wharf freight rate per TEU
  4. Calculate Notional Wharf to Wharf Disadvantage and class of shipper
  5. Calculate standard weight assistance per TEU
  6. Convert TEU assistance to assistance per head.
Commodity Lambs
Route Hobart to Victoria
Transport Unit LCL
Weight N/A
FCL/LCL LCL
Quantity 80 Lambs
Freight Price $800
Freight Task Door to Door

Conversion to a TEU (FCL) equivalent

Door to door freight paid per head applied to a FCL consisting of 188 lambs (average load per TEU).

$800/80 lambs = $10 per lamb
Applied to a FCL of 188 lambs provides a TEU equivalent rate of:
$10 per lamb x 188 lambs = $1880 per TEU

 $1,880

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Conversion to a Wharf to Wharf rate
Door to Door Freight Rate per TEU
($1,880 /1 container)		 $1,880 per TEU
Less
Adjustment for Door to Door task
(Adjustment of $230 for DW and WD task, $460 for DD task per clause 18)		 $460 per TEU
Notional Wharf to Wharf Freight Rate $1,420 per TEU

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Conversion to a Route G or S equivalent freight rate
Notional WW Rate
(for Hobart-Victoria)		 $1,420 per TEU
Scaling Applicable (per Schedule 2 scaling factor table) 1.3
Notional Wharf to Wharf (route G or S equivalent) $1,092.31 per TEU

Calculation of NWW
Notional Wharf to Wharf $1,092.31 per TEU
Less
Road Freight Equivalent (per subclause 20.2)		 $281 per TEU
Notional WW Disadvantage (NWW) $811.31 per TEU
Class of Shipper (per subclause 20.3) Class 3
Calculation of Notional Entitlement
NWW Plus Fixed Intermodal Cost ($50 at each end of WW task) $100 per TEU
Notional Entitlement (NE) $911.31 per TEU

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Standard weight Assistance
Per Assistance Formula:
(FC + MWW/2 + 0.75(MWW/2) + 0.5(NWW-MWW)) That is:
FC + (MWW/2) being, $100 + $335.50 = $435.50
Plus 0.75(MWW/2) being, 0.75 x $335.50 = $251.63
Plus 0.5(NWW-MWW) being, 0.5 x ($811.31-671) = $70.16
$757.28 per TEU
Per Shortcut Formula in Schedule 3:
Standard Assistance Dry Freight Class 3 Shipper
(0.5 x WW + $211.125 being, 0.5 x $1092.31 + $211.125 = $757.28)		 $757.00 per TEU

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Conversion of standard weight assistance to assistance per head
Standard Weight Assistance (FCL Basis) $757.00 per TEU

Assistance per head (FCL basis)

Divide standard weight assistance by load factor for FCL of lambs. Therefore assistance per head is:
$757.00 per TEU/188 lambs per FCL = $4.03 perlamb (rounded)

 $4.03 per lamb
Total Assistance payable (for LCL consignment of 80 lambs)
80 lambs x $4.03 per head = $322.40 (unrounded)		 $322.40
Net Freight Cost
$800-$322.40		 $477.60
  
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Last Updated: 13 December, 2007