A Quick Guide to Freight Classification for LTL

 

Freight classification is a crucial aspect of Less Than Truckload (LTL) shipping, as it significantly impacts the cost and handling of your shipments. Inaccurate freight descriptions can lead to costly reclassification fees and shipping delays. I’ve seen instances where an incorrect class resulted in substantial unexpected charges. 

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 Here are the key points to understand:

1. What is Freight Classification? Freight classification is a standardized system designed to categorize freight for the purpose of determining shipping rates. In the U.S., this system is primarily managed by the National Motor Freight Traffic Association (NMFTA) and is known as the National Motor Freight Classification (NMFC).

2. Factors Influencing Classification:

   • Density: The weight per cubic foot of your shipment. Higher density often means lower classification and cost.
   • Stowability: How easily the freight can be stowed or transported along with other freight. Items that are oddly shaped or require special handling can be classified higher.
   • Handling: Special handling requirements (fragile, hazardous materials) can increase the classification.
   • Liability: If the cargo is prone to theft, damage, or is perishable, it may have a higher classification.

3. Classes and Costs: There are 18 freight classes, ranging from Class 50 to Class 500. Lower classes (e.g., Class 50) are generally cheaper to ship as they are often denser, easier to handle, and less susceptible to damage. Higher classes (e.g., Class 500) include lighter, bulkier items requiring more special handling.

4. Accurate Freight Description: Providing accurate and complete descriptions of your freight is vital. Incorrect classification can lead to reclassification fees, delays, and increased costs.

5. Regular Updates: The NMFC updates freight classifications regularly. Staying informed about these changes is important to ensure accurate classification and avoid unexpected costs.

6. Negotiating with Carriers: Sometimes, there's room to negotiate classification with carriers, especially if your freight doesn't neatly fit into a specific category or if you're a frequent shipper.

7. Use of Technology: Utilize technology like Transportation Management Systems (TMS) to help classify freight accurately and manage shipping costs more effectively.

Understanding and properly utilizing freight classification can lead to significant cost savings and more efficient shipping processes in LTL logistics. Always double-check your freight's classification and stay abreast of any changes in the NMFC.