QUOTE: Originally posted by MP173 The split of revenue, as mentioned by Greyhounds is based on "divisions" or what we called in the LTL industry "factors". A book of factors was used based on common interline points. Points within a state were then assigned factors to these common points. Then the revenue would be divided accordingly. For instance...and these are not accurate, but are probably close. A shipment from Ft Wayne, Indiana to Los Angeles, Ca interlined at Chicago. Factor from Ft. Wayne to Chicago = 68 Chicago to Los Angeles = 450 Originating carrier receives 68/518 of revenue or 13% Terminating carrier receives balance or 87% These LTL factors were based on rail rates from the early 1900's believe it or not. They did tend to give a higher percentage to the short haul carrier, rather than mileage factors (Ft Wayne to Chicago - 200 miles, Chicago to LA - 2200, resulting percentage = 8%). I am sure, but not positive the rails did something very similar. If it was a contracted move, such as a stack train or a coal unit train, the rate divisions were no doubt negotiated based on other factors such as costs for picking up and delivery and who's power is used. ed
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