Average Advantage Sample Clauses

Average Advantage. The parties recognize that a higher volume of business should result in lower Rates. UP guarantees that APL will have a $15 average advantage per Container on the through Rates to and from Chicago. The $15 average advantage is based on a comparison of UP's through Rates to APL with UP's through Rates to APL's Competitors. APL's average Rate on a Comparable Unit Basis as defined below and the APL Competitor's average Rate on a Comparable Unit Basis will be derived by applying the APL Competitor's volume of business against the APL Competitor's rates applicable to such volumes and then applying that same volume against APL's Rates in the same lanes and on the same type of traffic. As an example, if ABC ocean carrier has 2,000 units moving from Los Angeles to Chicago at $750, 2,000 units moving from Chicago to Los Angeles at $700, 1000 units moving from Oakland to Chicago at $800 and 1000 units moving from Chicago to Oakland at $750, ABC's overall average rate would be $742. Further assuming APL's rates to be $750, $700, $775, and $725 respectively, and applying ABC's volume against these rates, APL's average rate is $733, or $9 lower than ABC's average rate. In such a case, UP would be obligated to adjust any or all APL rates such that the average is $727, or $15 lower, than ABC's rates. This further assumes that APL's overall actual volume is greater than ABC's.