Supply Chain & Procurement worked example

Expedite Freight Premium at 58% share of units moved at premium: a worked example

Suppose share of units moved at premium falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate expedite freight premium from expedited shipments and premium cost.

The inputs for this scenario

  • Units on the expedited shipment: 100 units (held at the documented default)
  • Base freight rate per unit: 45 $ / unit (held at the documented default)
  • Share of units moved at premium: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed expedite handling fee: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Weighted cost = quantity × rate × capture factor + fixed adjustment.
  • Total expedite freight premium cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Expedite freight premium cost per unit works out to 28.6 $ / piece at these inputs.
  • Variable expedite freight premium cost works out to 2,610 $ at these inputs.
  • Fixed expedite freight premium adder works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share of units moved at premium sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • It computes the total and per-unit premium you pay to expedite a given quantity of parts, blending a per-unit rate applied to the expedited share with a fixed handling adder. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total expedite freight premium cost: 2,860 $ (headline result)
  • Expedite freight premium cost per unit: 28.6 $ / piece
  • Variable expedite freight premium cost: 2,610 $
  • Fixed expedite freight premium adder: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Expedite Freight Premium calculator, set share of units moved at premium to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.