Shippers and LTL carriers have long relied on the National Motor Freight Classification (NMFC) standard to determine prices, which considers factors such as handling, stowability, liability, and density.
However, carriers are progressively adopting density-based pricing, which shares similarities with volumetric weight pricing. Numerous LTL carriers such as FedEx and UPS, and many more have already implemented a pricing system solely based on density.
However, it is important to note that the freight-class-based pricing system has dominated the industry for decades and continues to be utilized globally.
Therefore, it remains crucial for shippers to have a solid understanding of how the freight class system operates.
What is a Freight Class?
Freight class is a measurement that allows you to get standardized freight pricing for your shipment across different LTL freight carriers, distribution centers, or third-party logistic providers (3PLs).
Freight classes are defined by the National Motor Freight Traffic Association (NMFTA) and made available through the National Motor Freight Classification (NMFC).
Each product falls under a specific National Motor Freight Classification (NMFC) that corresponds to a designated freight class number for LTL (Less Than Truckload) shipments. Freight classes typically span from 50 to 500 and are determined by the nature of the goods being shipped.
For instance, bricks and cement fall under class 55 & wood cabinets, tables, and chairs fall under class 300.
The Importance of Freight Classification in LTL Shipping
Less than Truckload (LTL) refers to shipping small freight shipments that do not require a full truck. LTL shipments occupy only a portion of the available truck space and are combined with other loads to maximize efficiency and cost-effectiveness.
“Your shipment freight class impacts your freight costs and plays a significant role in handling potential freight claims such as damage, loss, or delays during transit.”
Misunderstanding the appropriate LTL freight class selection can lead to common shipping issues – delays, surcharges, disputes, etc.. It's essential to comprehend the proper freight class and accurately document it on your bill of lading (BOL).
With the surge in transportation and shipping costs, accurate measurements of your freight have become more valuable than ever.
What factors determine freight class?
Density
Certain shipments are not based on density and have pre-defined freight classes (as seen in the chart below). However, for the shipments that are density-based, you have to calculate density by dividing the total cubic feet by the total weight.
Shipments with higher density result in lower freight class and shipments with lower density result in higher freight class, making less dense items more expensive to transport.
Stowability
Stowability is the ease and suitability of a specific shipment to be stored or loaded in a truck or another form of container.
Freight that is too long, weird shaped, or heavy can present challenges when it comes to loading them, particularly when combined with other shipments making them fall under a higher freight class which increases the overall shipping cost.
Handling
When a shipment is packed correctly, it typically encounters no handling-related issues – the shipment is handled with ease. While most freight can be loaded without complications, items that are difficult to stow or that possess characteristics such as excessive weight or fragility require special handling to ensure the safety of workers and other freight, and to prevent damage.
A classification that represents the ease or difficulty of loading and carrying the freight is assigned to these items. In such cases, the carrier may assign a higher freight class to accommodate the additional challenges associated with loading and transporting such freight.
Liability
Liability refers to the value of the freight and the potential for loss or damage during transit impact the freight class.
This is an NMFC freight classification guideline. For accurate NMFC classification, visit the NMFTA website for the latest freight classifications.
Density-based freight class
If your freight doesn't involve significant liability, handling, or stowing considerations, the primary determinant of its freight class is typically its density.
In density calculations, dimensions play a crucial role in this classification, as they contribute to the overall density calculation.
Density-based freight class is a subcategory within the freight class system that specifically considers the density or weight per cubic foot of a shipment. It is typically used when the density of the shipment exceeds a certain threshold, such as a specified weight per cubic foot.
Density-based freight class assumes an average density among all commodities within a freight class, ignoring any problems with stowing, handling, and liability. By relying just on density, any potential disagreements between carriers and shippers regarding the interpretation of NMFC class codes can be avoided.
Having accurate measurements of your freight can determine if your shipment is going to be delayed or receive additional handling fees. If a carrier suspects misrepresentation on a BOL, intentional or not, your shipment will be flagged for an audit and an inspection leading to:
- subsequent reweigh or measurement,
- changes to your shipment freight class (meaning over-dimensional fees and other surcharges)
Ultimately delaying your shipments.
In these cases, paying extra attention to factors such as pallet overhang, irregular items, and parcel dimensions directly affects your bottom line.
Assign freight class and calculate shipping costs in a tap
Note: Freight class ratings can vary depending on the carrier and the specific rules they follow. If you’re uncertain of the freight class of your shipment try utilizing one of many freight class calculators on the internet.
How to speed up the calculation of your freight class?
Dimensioners are becoming increasingly popular in the less-than-truckload industry, allowing carriers to calculate the costs of shipments purely on density with greater accuracy.
While many companies opt for manual means of measuring or expensive static dimensioners to retrieve dimensional data and calculate freight classes, a quick and simple solution is a mobile freight dimensioning app.
By utilizing a mobile freight dimensioning app, scan your item, and in a split second retrieve the measurements of your freight.
- Accurate measurements
- Accurate invoices
- Quick and simple
- Automated calculations
- Integration with existing systems
Simplify your retrieval of measurements with a tap on a mobile dimensioning app. Learn more here.