Logistics Cost Calculation Rules

Overview

Our logistics costs are calculated based on the following formula:

Total Logistics Cost = (Registration Fee + Additional Weight Fee) × Fuel Surcharge + Remote Area Surcharge

Cost Components

1. Registration Fee:
2. This is a fixed charge applied to all shipments to cover the basic costs associated with the registration and handling of the package.
3. Additional Weight Fee:
4. This fee applies when the weight of the package exceeds a certain threshold. It is calculated on a per-pound basis for the weight exceeding the threshold.
5. Fuel Surcharge:
6. This is an additional fee applied to account for fluctuations in fuel prices. The surcharge is a percentage of the total cost derived from the registration fee and additional weight fee.
7. Remote Area Surcharge:
8. This fee is applicable to deliveries to remote or hard-to-reach locations. It is added to the total logistics cost to cover the extra transportation expenses incurred.

Calculation Example

Let’s consider an example to illustrate how logistics costs are calculated:

• Registration Fee: $5.00
• Additional Weight Fee: $1.00 per pound (for weight exceeding 1 pound)
• Fuel Surcharge: 10% of the total cost before the remote area surcharge
• Remote Area Surcharge: $3.00 (applicable if the delivery address is in a remote area)

Example Scenario:

• Package Weight: 3 pounds (2 pounds exceed the threshold)
• Destination: Remote area

Step 1: Calculate Additional Weight Fee

• Additional Weight = 3 pounds - 1 pound (threshold) = 2 pounds
• Additional Weight Fee = 2 pounds × $1.00/pound = $2.00

Step 2: Calculate Total Cost Before Surcharges

• Total Cost Before Surcharges = Registration Fee + Additional Weight Fee
• Total Cost Before Surcharges = $5.00 + $2.00 = $7.00

Step 3: Calculate Fuel Surcharge

• Fuel Surcharge = Total Cost Before Surcharges × 10%
• Fuel Surcharge = $7.00 × 10% = $0.70

Step 4: Calculate Total Logistics Cost

• Total Logistics Cost = (Registration Fee + Additional Weight Fee) + Fuel Surcharge + Remote Area Surcharge
• Total Logistics Cost = ($5.00 + $2.00) + $0.70 + $3.00
• Total Logistics Cost = $7.00 + $0.70 + $3.00 = $10.70

Conclusion

By following the above calculation rules, you can easily determine the logistics costs for your orders. For any further inquiries or assistance, please feel free to contact our customer service team.