Glossery - Freight Class
Published: 2023-DEC-13
Published by: Christopher Schoeder
Source: ChatGPT Prompt
Freight Classes, also known as NMFC (National Motor Freight Classification) codes, are a standardized system used in the shipping and transportation industry to categorize and classify different types of freight based on their characteristics. These classes are primarily used for less-than-truckload (LTL) shipments, where multiple shipments from different customers are consolidated onto a single truck.
The purpose of assigning Freight Classes is to establish a uniform method for determining shipping rates, liability, and handling requirements for various types of cargo. The classification takes into account several factors, including the density, stowability, handling, and liability of the freight. By assigning a freight class,carrierscan accurately price the shipments based on its characteristics and the associated costs of handling and transporting it.
The NMFC assigns 18 differentFreight Classes, ranging from class 50 to class 500, with class 50 representing the least dense and easiest to handle freight, and class 500 representing the densest and most challenging to handle. The classification is based on a numerical scale, with lower classes generally indicating lighter, less bulky, and easier-to-handle freight, while higher classes represent heavier, bulkier, and more complex freight.
The freight class determination takes into consideration various factors, such as the commodity’s value, fragility, handling requirements, liability for damage, and ease of loading and unloading. The NMFC provides guidelines and descriptions for each class to help shippers andcarriersdetermine the appropriate classification for their freight.
It’s important to note that accurate classification of freight is crucial to ensure proper pricing and compliance with shipping regulations. shippers are responsible for determining the correct freight class, typically with the assistance of a freight broker or carrier, to avoid issues or unexpected costs during the transportation process.
Freight class is primarily calculated based on four main factors:
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Density: The density of the freight refers to the weight of the shipments relative to its volume. It is typically measured in pounds per cubic foot (lbs/ft³). To calculate density, you divide the weight of the item (in pounds) by its volume (in cubic feet). The formula for density is as follows:
Density (lbs/ft³) = Weight of the item (lbs) / Volume of the item (ft³)
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Stowability: Stowability considers the ease with which the freight can be packed and stored on a carrier’s trailer along with other items. Freight that is difficult to stow efficiently may be assigned a higher class.
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Handling: This factor takes into account how easily the freight can be handled and moved. Freight that requires special equipment, careful handling, or poses potential hazards may be assigned a higher class.
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Liability: Liability refers to the likelihood of freight being damaged or causing damage to other shipments while in transit. Items that are more prone to damage or are hazardous may be assigned a higher class.
Once these factors are evaluated, the NMFTA assigns a freight class number from 50 to 500. The lower the class number, the lower the shipping rate as it indicates the freight is easier to handle, has a higher density, and is less likely to cause damage or incur additional handling charges.
It is essential to correctly classify the freight, as it directly impacts the shipping cost. The carrier or shipping company will require accurate information about the shipment’s weight, dimensions, and commodity description to determine the appropriate freight class and calculate the shipping charges accordingly. If the freight class is misclassified, it can lead to billing adjustments and potential delays in shipping.