What is Freight Class and How Do You Determine It?
Freight class is a standardized method for classifying less-than-truckload (LTL) freight shipments using characteristics such as density, liability, handling, value, and several other measurable values. Accurately understanding and assigning the correct class, shippers can make sure their goods are transported safely and cost-effectively.
In this post, we’ll dive deep into freight class, covering everything you need to know. You’ll learn how to determine it, what factors affect that determination, and we’ll share helpful tips and tools to assist logistics industry professionals with this important process.
What is Freight Class?
Freight class is a standardized measurement or classification system that categorizes shipments based on their characteristics, including, weight, dimensions, density, stowability, and handling requirements. The National Motor Freight Traffic Association (NMFTA) established the National Motor Freight Classification (NMFC) system, which is widely used throughout the U.S. shipping industry. Freight class primarily applies to less-than-truckload (LTL) shipments. LTL shipments are when a single client’s shipments do not fill an entire container and are consolidated alongside other clients’ goods. Freight classes hold immense significance in the shipping industry as they establish a standardized pricing framework for shipments.
The NMFTA has defined eighteen distinct freight classes. These classes are based on weight, length, height, ease of handling, density, value, liability, breakability, and spoilage. Lower classification numbers result in lower freight costs. Logistics professionals must have a good understanding of freight class as it directly impacts budgeting and cost analysis. Many other aspects of the shipping process are also affected, including space utilization, carrier selections, and overall shipping efficiency.
Understanding how to classify freight equips logistics industry professionals with the ability to make well-informed decisions to help optimize their organization’s shipping process.