Freight Class for Shippers: A Complete Step-by-Step Guide

Many methods of shipment are being used nowadays by multiple companies. Less-than-truckload (LTL) is also one of these methods commonly used to transport goods if the shipment is smaller and doesn’t need a full truckload.

Various factors, such as weight, size, and handling requirements, are used in the freight system to categorize freight. This standardized system is known as Freight that ensures efficient transportation of cargo with reduced risks.

Let’s explore what freight class is in detail, why is it important, and how to know which one is right for shipment.

What Is the Shipping Class for Freight?

Shipping Class freight is also known as National Motor Freight Classification (NMFC). It is a shipping system used in LTL shipments by interstate, intrastate, and foreign commerce movement. This system allows businesses to calculate the shipping cost required for the safe transportation of goods from one place to another. This system is developed by the National Motor Freight Traffic Association.

Now you might wonder what class is in Freight shipping. The answer to this question is very simple, Class in freight shipping is a standard system used by businesses to determine shipping cost and handling requirements. Some factors assign the class. Class freight includes four primary metrics to calculate transportability, i.e., Density, Liability, Manageability, and Stackability. It also plays a crucial role in sea shipping, where the freight class is determined based on a combination of these factors. Let’s discuss them in detail.

1. Density

Density is the space needed for an item to its weight within the shipping realm. Freight items that are compact and dense fall into lower freight classes. For example, an item over 50 pounds per cubic foot will go into class 50.

2. Manageability

The task of loading and unloading cargo is usually performed by machines. However, in the case of freight shipping, this process requires more care because of the weight, fragile items, and hazardous properties. The handling of these goods is done with great care, and more handling efforts are required, making this process complicated.

3. Liability

Assessing the risk and responsibilities increase when freight shipping is done. Freight shipping usually includes perishable items and dangerous chemicals as well. So, the risk of theft and accidents increases liability concerns and added costs.

4. Stackability

Stackability is also known as stowability. This includes how freight can be stored and secured because some freight items can be hazardous or even bulkier. So, loading them together may be subject to certain policies.

Now the answer to this question must be clear what does Class mean when shipping Freight? Other than this, according to The National Motor Freight Traffic Association (NMFTA), freight classes range from 60 to 400, depending on the commodity. For example,

• Refrigerators: Class 92.5
• Cabinets: Class 110
• Paper Products: Class 70
• Car Tires: Class 150
• Furniture: Class 175
• Mattresses: Class 200
• Plastic Products: Class 92.5
• Machinery: Class 85

These classifications help ensure consistent pricing across all LTL freight carriers.

Role of Freight Classification in LTL Shipping

Determining your shipment’s freight class is a vital step. To effectively manage LTL freight shipping freight class is determined. It impacts shipping costs and also deals with potential freight claims.

In the U.S., every commodity is assigned a National Motor Freight Classification (NMFC) code. This gives consumers a well-defined pricing structure for transporting freight, ranging from class 50 to class 500. The number assigned to an item determines the tariff, which affects the price charged to customers.

The purpose of freight Class is to provide a comparison of commodities for freight identification and classification. Today’s global market of shipping is very competitive. The process of simplifying comparative evaluations is necessary. It is done for billions of different products that are annually shipped.

Freight Class is an important practice in which goods assigned to the specific class are based on the type of commodity and the density of the freight. It helps the workers to determine which items are stackable, fragile, and least likely to get damaged. It is also used to help organize each item in class especially when handling fragile and heavyweight goods.

You might be thinking what’s so special about LTL? The answer to this question is simple. The NMFC is specific to LTL shipments. These shipments have a variety of products being shipped on a single pallet. They do not share liability and density values. Moreover, they do not necessarily require equal handling and stowing efforts. So, they are also priced differently.

How to Calculate Freight Density

1. The first step is to determine the length, width, and height of your goods in inches.
2. Now multiply them to calculate the size of your freight in cubic inches.
3. To convert to cubic feet, divide by 1,728 (the number of cubic inches in a cubic foot).
4. The next step is to divide the weight of your freight (in pounds) by the total cubic feet. 
5. The formula for this is: L x W x H = inches³ → inches³ / 1,728 = feet³ → weight in lbs. / feet³ = density.

Common Misconceptions About Freight Class

People in the logistics industry have had various misconceptions about freight class over the years. Here is a list of these misconceptions:

1. All LTL freight shipping companies calculate accessorial charges the same way
2. LTL freight shipping class won’t change. Some people often think that if they’ve been shipping the same freight for years, their class won’t change.
3. Transit times are guaranteed in less than truckload shipments
4. Big discounts are better than good rates in LTL freight shipping
5. The cheapest less-than-truckload rate is always the best rate

Consequences of Choosing the Wrong Freight Class

For more than 80 years, the National Motor Freight Classification (NMFC) standard has determined the freight classes for motor carriers. The consequences that can occur if there is a mistake or inaccurate freight classification are as follows

1. Confusion in cargo
2. Delays in shipment
3. Unexpected charges on final bills
4. Time and energy wasted
5. Clerical costs for both the shipper and carrier

Finding the right freight class is complex when the process is not completely understood. This system can be challenging but not impossible to understand. Moreover, the classifications can shift as the contents of shipping loads differ with annual updates to the regulations. As a result, many times the classes of freight are misunderstood. Erin Topper, the director of pricing services for Old Dominion says:

“On average, more than half of freight is misclassified”

So, it is important to ensure that the right freight class is determined for a smooth experience.

Final Thoughts

Freight class plays an important role in determining and managing the costs of LTL shipping. By understanding the classification system and considering factors such as density, liability, and weight, you can ensure your cargo is delivered safely, efficiently, and at the best possible rate.

The most effective approach used by TEU Global to navigate the right freight class is by providing one-to-one consultations with the clients. So, they know how their shipment is classified and how to complete their bills of lading. Properly classifying your freight will not only save money, but also save time. Don’t forget to calculate and monitor your freight levels to improve your shipping process.