One frequent customer is located in Miami FL LTL shipments

Last updated: 5/1/2023

One frequent customer is located in Miami FL LTL shipments from Atlanta to Miami cost 900 for a 5 000 pound shipment A new employee suggests that the company consider establishing a breakbulk facility in Jacksonville FL to serve customers in the South region including the Miami customer The cost of breaking bulk in Jacksonville is estimated to be 1 200 per truckload shipment received A truckload shipment has capacity for up to 50 000 pounds 10 typical orders The truckload carrier charges by the mile The distance between Atlanta and Jacksonville is 383 miles The carrier charges a rate of 1 95 per mile plus a fuel surcharge of 0 25 per mile An LTL shipment of 5 000 pounds from Jacksonville to Miami is 500 Would adding the breakbulk operation make sense from a cost standpoint Show your calculations and compare