Understanding how to determine freight class is paramount to managing your logistics and shipping costs. Why? Because freight class is a key factor in determining the costs associated with your freight.
In addition to the upfront costs, freight class plays an important role in managing freight claims. As such, the experts at On Track Freight Systems have outlined a few key steps in determining freight class for LTL freight.
What Is Freight Class for LTL Freight?
Freight class or freight classification is a standardized measurement that allows standard prices for LTL freight. Whether you’re shipping standard pallets, bamboo furniture, packaged mattresses, cast iron stoves, boat covers, car covers, car accessories, or any other commodity group, freight class is the standardized method for determining the cost of shipping the freight.
LTL Freight Classes vs NMFC Codes
LTL freight classification is determined and defined by the National Motor Freight Traffic Association (NMFTA) — the commodity classification standards board. Freight classification is made available through the National Motor Freight Classification (NMFC).
Every commodity is assigned an NMFC code, which is very similar to the PLU code used in retail locations. NMFC codes are important because they help LTL carriers understand how easy or difficult it will be to transport the commodity.
While freight class mainly takes density into account, the NMFC codes consider other factors, such as:
- Packaging
- Commodity type
- Height, length, and weight
- Ease of handling
- Density of freight
- Value and liability
How Is NMFC Code Related to Freight Class?
The NMFC code will tell you how to class your freight. While some items can have a permanent class, other cargo could be classed based on value, packaging, density, or other factors. If an item is density-based, it means the density of the freight will determine the class.
Freight Classes Can Range from 50 up to 500
Freight classes will generally range anywhere from 50 up to 500 spanning across 18 classes, The freight class is based on specific types of commodities. For instance, cabinets can have a freight class of 110 while refrigerators may have a freight class of 92.5. One good rule of thumb is:
- Cargo with a higher freight class will be more expensive to ship.
- Cargo with a lower freight class tends to cost less to ship.
What’s the Role of Freight Class in LTL Freight Shipping
Freight shippers and LTL carriers are concerned about freight class because it dictates the tariffs that must be paid to transport goods. The freight class, in turn, dictates shipping fees and freight shipping rates.
As a standardized classification system, LTL freight class can help ensure customers receive an unbiased price when shipping freight.
It’s Important to Get the Right Class
Unfortunately, the majority of freight shippers tend to underestimate the freight class by declaring a lower class when classifying freight. Even though it may seem sensible to declare a lower freight class in an attempt to save money, it often causes the exact opposite.
Incorrect Classification Can Be Costly
When you misclassify your freight, the carrier will often need to reclassify it. This process can cause wasted resources, wasted money, and wasted time. At the same time, getting freight classifications wrong can lead to delivery delays.
In most instances, LTL freight class is directly related to the size of the shipment. Carriers must have a clear and accurate understanding of the LTL freight class of every shipment to maximize trailer space.
For example, if a carrier has to upgrade a shipment to a higher freight class, the carrier may not have the space to accommodate the shipment.
What Determines Freight Class?
There are four major characteristics that are examined to calculate freight class. Here are the four key factors that are taken into consideration with any freight class calculator.
Freight Density
In the world of LTL shipping and freight class, the density of the freight is at the top of the list. As the most important freight class determining factor, freight density can be defined as the amount of space an item occupies based on its weight.
The freight density is reported in pounds per cubic foot, total cubic feet, or cubic feet. The freight density of an LTL shipment can be calculated by dividing total cubic feet by total weight in pounds.
Some commodities are not based on density and will have a pre-defined corresponding class. On the other hand, other commodities are based on density. In either case, freight with lower density will generally have higher freight classes.
For example:
- A Freight Class of 60 will be assigned to freight that is more than 60 pounds per cubic foot.
- A Freight Class of 500 has a low density or low pounds per cubic foot. Examples of this would be ping pong balls that generally have a lower average density.
For LTL shipping, determining the freight density can be a challenge. As such, many savvy shippers use a freight density calculator.
Stow Ability or Stowability
If you’re looking to calculate freight class, the stow ability of the load is a key factor. Stow ability considers how your freight can be transported with other commodities or adjacent freight.
Is Your Freight Flammable, Perishable, or Hazardous Materials?
If your freight is perishable, flammable, or has hazardous materials, it will be more difficult for LTL carriers to ship with other freight. This can increase the shipping cost.
As such, freight that is flammable, hazardous, or perishable are more likely to have a higher freight class. At the same time, freight and cargo that is highly regulated by government or carrier policies will be more difficult to stow and have a higher freight class.
How Is Your Freight Packaged?
When you’re considering the stow ability of your freight, make sure you think about how it’s packaged. Freight and items that are boxed and/or crated are typically easier to load and pack inside of a truck.
At the same time, these LTL shipments may be more easily stackable. To maximize your LTL freight’s stowability consider using crates or other packaging.
Liability
Liability refers to the overall value of your commodity.
Is Your Freight Easily Damaged or Likely to Be Stolen?
This can be directly related to the likelihood of cargo theft. Liability also considers the likelihood that the LTL shipping cargo can be damaged.
Can Your Cargo Potentially Damage Other Shipments?
On the other hand, the liability of less-than-truckload freight refers to the probability that the cargo can cause damage to other freight during shipment.
Dangerous Freight May Have a Higher Freight Class
Dangerous chemicals, cargo with hazardous properties, and perishable cargo all carry more liability concerns and may carry additional costs from an LTL carrier.
When your LTL freight possesses a greater risk, it will require a higher freight class, which is usually associated with higher shipping costs.
Freight Handling
When it comes to the price of your LTL service, the handling is a major factor in determining the freight class. Why? Because your freight or cargo will pass through various distribution facilities and checkpoints before it reaches the final destination.
As such, a properly packaged shipment will generally not have any problems. Although loading equipment will typically have no problem moving and loading cargo, items that are difficult to stow may require special equipment.
At the same time, cargo that is awkwardly shaped, fragile, extremely heavy, or hazardous could mandate special equipment to prevent injuries to workers or damage to the freight. If your cargo is more difficult to move or carry, the freight carrier may classify it with a higher freight class.
Contact On Track Freight Systems to Learn How to Determine Freight Class
We get it, understanding and determining freight class can be very confusing. Fortunately, you’re not alone. In addition to a plethora of online tools, the team at On Track Freight Systems can offer guidance and assistance.
As the premier LTL and FTL freight carrier, we offer a full range of logistics services designed to move your cargo from point A to point B with efficiency and speed. We offer fast and affordable logistics services and freight shipping solutions throughout the United States:
Regardless of the point of origin or destination, On Track Freight Systems is your one-stop LTL and FTL carrier solution.
Contact us today to learn more about how to determine freight class or for a free rate quote.
