Freight classification establishes the amount of compensation carriers receive for transporting less-than-truckload freight throughout the U.S. and Canada. When carriers fail to classify freight correctly, they face costly reclassification fees, extended delays, and damaged reputations with shippers who charge carriers for misdocumented shipments. By understanding the National Motor Freight Classification System, carriers protect themselves from unexpected fees and claims disputes that eat away at profits generated from well-paying loads. Below is an overview of how freight classes are established, the 18 freight classes contained within the NMFC System, and how FreightCheckers identifies shippers that consistently provide inaccurate freight classification data.<\/p>\n
Freight class is a uniform freight classification system developed by the National Motor Freight Traffic Association<\/a> to place less-than-truckload freight into one of 18 different classes ranging from 50 to 500. To develop a classification system that would allow carriers and shippers to establish consistent pricing for freight based on its difficulty of movement, the NMFTA established freight classes using four fundamental characteristics related to the ease\/difficulty of transporting the freight: Density, Stowability, Handling Requirements, and Liability Risk. The lower the freight class, the greater the density of the freight and the easier it is to handle\/stow; the higher the freight class, the lower the density of the freight and the more difficult it is to handle\/stow.<\/p>\n In addition to establishing a freight classification, the NMFTA assigns each commodity a unique NMFC Code, which indicates that commodity’s freight class. The freight class of a commodity is established based upon the commodity’s NMFC Code and the four freight classification characteristics previously identified. Because of the NMFTA’s commitment to ensuring that freight classifications remain current and accurately reflect changing shipping practices\/commodity characteristics, freight classifications are updated quarterly by the NMFTA. To ensure that freight is properly loaded onto trailers, equipment is allocated appropriately, and freight is properly rated, carriers rely on freight classifications being accurate<\/a>.<\/p>\n The NMFC System contains 18 different freight classes ranging from 50 to 500. Class 50 is applied to the densest types of freight (such as brick, concrete, etc.), which weigh more than the volume they occupy in a trailer, thus reducing the cost of hauling these freight items in conjunction with other freight items. Mid-level freight classes (classes 85-125) encompass items such as machine parts, electronics, and packaged food products. Although these freight items possess a moderate level of density, they present some degree of difficulty with regard to handling and\/or stacking. Higher level freight classes (classes 150-500) consist of lightweight items (e.g., ping pong balls, furniture, etc.) that occupy a larger percentage of the trailer space compared to the weight of the item(s). Class 500 represents the most difficult type of freight to haul (i.e., extremely fragile, irregularly shaped items, etc.), which limits the efficiency of loading freight.<\/p>\n Because carriers pay for unused trailer space, utilize specialized equipment to handle freight, and assume greater liability for damaged\/lost goods when hauling freight that occupies a large percentage of the trailer space relative to its weight, each freight class represents an incremental increase in freight rates.<\/p>\n Density is generally the primary determinant of a commodity’s freight class. In general, carriers calculate the density of a commodity by dividing the gross weight of the commodity (in pounds) by the total cubic volume of the commodity. As a general rule, the higher the density of a commodity, the lower its freight class and the lower its freight rates. For example, a pallet of books weighing 1,000 pounds and taking up 10 cubic feet has a density of 100 pounds per cubic foot and would be classified into a lower freight class. Conversely, a pallet of pillows weighing 200 pounds and taking up 20 cubic feet would have a density of only 10 pounds per cubic foot and would be classified into a significantly higher freight class, even though the weight of the pillows is significantly less than the weight of the books.<\/p>\n To determine the accuracy of a shipper’s freight class declarations, carriers measure the dimensions of the freight items and compare those dimensions to the weight and size of the freight as listed on the bill of lading. Any discrepancies discovered between the freight class declaration and the actual characteristics of the freight items can lead to reclassification and additional fees charged by the carrier. To avoid disputes over freight class declarations, it is critical that carriers carefully measure the dimensions of the freight items before departure from the shipper’s premises and track freight class reclassification rates<\/a> to identify patterns of problematic shippers.<\/p>\n When freight is misclassified, carriers incur financial losses due to reclassification fees and rate increases. Shippers who inaccurately list the NMFC Code or the dimensions of freight items cause the reclassification of freight by providing carriers with incorrect freight class information during the transit inspection process. Subsequently, carriers send a reclassification fee to the shipper equal to the difference in freight class rates between the original freight class and the corrected freight class, along with an administrative fee to compensate the carrier for the time and expense incurred for the reclassification work. Fees associated with reclassification vary among carriers; however, typical fees range from $15 to $150 per shipment. The freight class reclassification can also create significant delays in delivery since the carrier holds the freight until the shipper verifies the freight class and submits corrected documentation.<\/p>\n Shippers who repeatedly misclassify freight create negative relationships with carriers. Some shippers deliberately under-class freight to secure lower bids from carriers, thereby requiring the carrier to absorb the increased costs or expend considerable resources to contest the reclassification fee. FreightCheckers’ Shipper Ratings<\/a> contain historical records of shippers that have patterns of misclassifying freight.<\/p>\n If a carrier believes that the original freight class was correct and therefore challenges the reclassification, the carrier must submit documentation supporting the fact that the freight met the requirements of the NMFC Code and freight class indicated on the freight bill of lading.<\/p>\n Documenting the shipment, which should include product specifications, packing slip, scale certification documents, and photographs of the freight as loaded, is required to support the carrier’s claim. The documentation must be submitted to the carrier no later than several days after the carrier notifies the carrier of the reclassification, as the carrier is more likely to grant approval to a disputed reclassification when the documentation is submitted on time.<\/p>\n The carrier may want to request product specifications and the NMFC Code justification from the shipper, especially if the shipper furnished the incorrect information. If the shipper furnished incorrect information, the shipper is liable for the increased cost, rather than the carrier. However, disputes over freight class classification can take weeks or even months to resolve, depending on the backlog of disputes that the carrier must resolve.<\/p>\n A carrier cannot dispute the NMFC Code itself, as the classification system is legally binding. Therefore, if the freight matches the description in the NMFC Code that the carrier used, the reclassification is final, regardless of what the shipper originally claimed.<\/p>\n Smart carriers check the freight class of shipments prior to accepting the load so that they do not experience the surprise of reclassification. Carriers ask shippers to provide the specific NMFC Code, rather than simply stating the freight class. Carriers also ask for descriptions of the commodity that are sufficient to verify whether the classification assigned to the commodity matches the physical characteristics of the freight items.<\/p>\n Shipper ratings on FreightCheckers<\/a> help identify shippers who have a history of misclassifying freight. If multiple carriers report that a specific shipper frequently misclassifies freight, carriers should consider the potential for reclassification costs when calculating their freight rates or deny the shipment.<\/p>\n Before leaving the shipper’s premises, carriers photograph and document the freight. Measuring the dimensions of the freight and checking the freight’s weight against the bill of lading will provide evidence that any freight class classification errors were caused by the shipper.<\/p>\n Carriers who continually accept freight without first verifying freight classifications are losing money to reclassification fees and wasting too much time on disputes that could have been avoided by documenting freight characteristics at the time of acceptance of the freight.<\/p>\n Understanding how to avoid freight scams<\/a> and problematic shippers involves verifying freight classifications before hauling freight.<\/p>\n FreightCheckers offers motor carriers a wealth of information about the quality of service provided by shippers in the U.S. and Canada, including the accuracy of freight classifications reported by shippers. Carriers share their experiences with shippers who regularly misclassify freight, allowing carriers to warn others before accepting loads that will cost money due to reclassification charges and disputes. With detailed information on the service habits of shippers arranged geographically by location, FreightCheckers allows carriers to avoid problem-shippers that waste time and money with poor documentation. For more information on how FreightCheckers helps protect carriers from uncooperative shippers and makes better-informed business decisions, please visit our website today<\/a> or contact FreightCheckers directly<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Freight classification establishes the amount of compensation carriers receive for transporting less-than-truckload freight throughout the U.S. and Canada. When carriers fail to classify freight correctly, they face costly reclassification fees, extended delays, and damaged reputations with shippers who charge carriers for misdocumented shipments. By understanding the National Motor Freight Classification System, carriers protect themselves from […]<\/p>\n","protected":false},"author":2,"featured_media":3447,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[20,23,5,14],"tags":[],"class_list":["post-3446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-freight-industry","category-news","category-tips"],"yoast_head":"\nAn explanation of the 18 freight classes<\/h2>\n
How does density affect freight class?<\/h2>\n
What happens if my freight is incorrectly classified?<\/h2>\n
How do I dispute an incorrect freight classification?<\/h2>\n
Why do carriers need to verify class before accepting loads?<\/h2>\n
More Comprehensive Freight Classification Information from FreightCheckers in the U.S. and Canada<\/h2>\n