How to determine freight class for optimal shipping costs

LTL freight class is important because it affects the operational and logistic workflows of a carrier. Accurate freight class information helps carriers make informed decisions regarding what loading equipment, labor and size trailer the shipment will require. It is also pivotal for quoting shipping rates accurately.

Think of LTL class as a tool that allows the shipper to communicate effectively with the carrier in order to maximize efficiency, logistics planning and cost predictability.

In this guide to less-than-truckload (LTL) freight shipping, we discuss the nuances of LTL freight class, so businesses can better understand how to optimize shipping costs and mitigate common logistics issues. You will learn how to properly determine the correct LTL freight class and ensure shipments are compliant with industry standards.

Learn more about Planimatik's LTL shipping solutions.

What Is a Freight Class/NMFC Code?

A freight class, or National Motor Freight Classification (NMFC) code, is a designation or classification number, ranging from 50–500. The freight class system helps carriers determine shipping costs, calculate fuel surcharges and ensure proper handling and transportation of goods, so shipping logistics are as safe and efficient as possible.

The NMFC code system is maintained by the National Motor Freight Traffic Association (NMFTA) and consists of 18 distinct freight classes, which are decided primarily upon the weight per cubic feet (or density) of the commodities being hauled, along with a few other factors.

In general, loads that are lighter and easily handled receive lower classification numbers, while loads that are more difficult, risky, expensive and heavier receive a higher classification. This means carriers typically charge less to ship cargo with a lower freight class and more for higher freight classes, due to the difference in difficulty when shipping.

In the LTL shipping model, each shipment is assigned its own LTL freight class, which helps to ensure loads are shipped, handled and priced properly.

How to Determine Freight Class

There are several important factors that influence how LTL freight is classified. By understanding these factors, companies can better categorize their freight and optimize shipping costs.

Density

Freight density measures the amount of space cargo takes up and how tightly it must be packed, relative to its size. It helps define how much space needs to be allocated in a trailer.

To calculate this number, carriers divide the cargo’s total cubic feet by the weight of the goods being shipped. The result of this formula is the freight’s density, which is measured in pounds per cubic foot.

High-density commodities, such as hardwood flooring, bulk goods, or nuts and bolts, receive a lower freight class since they are more stable and less likely to be damaged during shipping.

Less dense items, such as a table, chair or glass cabinets, tend to take up more room, are easy to break and more risky to move — all of which would contribute to a higher shipping class.

Liability

By following NMFTA guidelines and suggestions, companies can properly account for insurance costs and coverage, reducing risk and liability exposure, and properly price shipments. Carriers create a liability profile for shipped items, which takes into account:

• Are the goods perishable or at risk from adverse temperature ranges?
• Are the items easy to damage?
• Are the items capable of damaging other cargo during shipment?
• Is the cargo flammable, corrosive or hazardous?

Another consideration for liability is the value of the commodities being transported. Carriers calculate the value per pound of cargo when determining freight class as well, as higher-priced goods can result in increased risk and insurance costs.

Handling

The third criteria for determining freight class involves the amount of handling the goods will require. For example, heavy, odd-shaped or larger cargo typically incur a higher shipping classification due to the amount of effort they require to load, transport and deliver.

Additionally, materials that require special handling, such as corrosives, flammables and hazardous waste, will earn a higher freight class. So too would fragile items like glass, sensitive electronics or finely-tuned instrumentation.

On the flip side, packages that are uniform in shape and size or that are set to industry standards will be assigned a lower freight class, as they are easier to handle.

Stowability

Stowability refers to how easy a piece of cargo can be stored in relation to other freight in a trailer.

Oddly shaped items make it difficult to pack trailers to their maximum capacity, meaning there will be wasted space. Because of this, cargo that is not uniform or standardized will cost more money to ship.

Items that have good stowability would include boxes of books, nuts and bolts, or even cases of canned soda.

Why Is Freight Class Important?

Freight class affects cost savings. Receiving a lower freight classification results in lower shipping costs, while a higher freight class will be more expensive.

Calculating the correct freight class is necessary for a number of reasons, including:

• Predicting and Managing Costs: Miscalculating freight class incurs additional costs, which can hurt businesses with small budgets and tight cash flows.
• Preventing Issues With Shipping Logistics: When freight classes are incorrect, carriers are unable to anticipate the level of labor and equipment required for loading.
• Meeting Safety, Regulatory and Compliance Standards: Using the wrong NMFC codes can lead to misidentified loads, especially with specialty materials.

What Happens If Freight Has Incorrect Shipping Class Codes?

If freight has the incorrect shipping class code, it will often need to be reclassified by the shipping carrier. This leads to unexpected fees, delivery delays and potentially hazardous situations. It can also cause the spoilage or damage of not only the business’ cargo but the rest of the freight in the shared container.

Extra fees and costs incurred due to broken freight, time delays and safety hazards can quickly add up and negatively affect the operation and finances of a company.

Dimensional Rating vs. NMFC Codes

Dimensional rating refers to the amount of space a shipment takes up in a trailer. For shippers who frequently deal in dense freight, relying on dimensional rating may be a better choice than using NMFC codes.

NMFC codes and systems are based on factors including item type, handling requirements, liability, and stowability. This can lead to unpredictability in costs or delays if the wrong classification is chosen.

While both methods are used in LTL freight shipping, more and more companies are opting for dimensional rating, as advances in technology make pricing and planning more predictable.

Why Do Some Commodities Have a Fixed Freight Class?

Cargo with consistent size, weight and shipping characteristics are subject to fixed freight classes. Industry and manufacturing standards enforce uniformity, making it easy to classify them with a permanent freight class. For instance, auto transmissions have a standard configuration and are considered fixed freight.

On the reverse side, items that are more likely to change in density or value, like electronics or batteries, cannot have a fixed freight class because of evolving specifications.

Preparing Your Goods for LTL Shipping

Once freight classification is complete, you will want to ensure you follow some standard best practices for preparing your goods for LTL shipping. This avoids delays, extra fees, or damage.

Learn more about effective freight planning strategies.

Documentation

Ensure you have all required shipping documents:

• Bill of Lading
• Packing list
• Commercial invoice
• Arrival notice
• Letter of credit
• Certificate of Origin
• Air or railway bill
• Relevant certificates

Freight Preparation

• Load cargo onto pallets
• Stack cargo for maximum stowability and safety
• Label items requiring special handling
• Be ready at time of pickup

Avoid Freight Class Confusion With Planimatik

When in doubt, consult with a LTL freight classification specialist. Planimatik simplifies the freight classification process and helps users avoid costly mistakes and logistical challenges.

Learn more about how Planimatik removes uncertainty from LTL freight classification.

FAQs

How do I figure out LTL class?

Measure the height, width, and depth of your shipment. Multiply those to get cubic feet. Then divide the weight by cubic feet to get density (lbs/ft³).

What are the classes of LTL freight?

There are 18 total classes of LTL freight: 50, 55, 60, 65, 70, 77.5, 85, 92.5, 100, 110, 125, 150, 175, 200, 250, 300, 400, and 500.

What is Class 55 freight?

Class 55 freight includes construction and flooring materials weighing 35–50 pounds per cubic foot.

Are NMFC classes the same as harmonized codes for international shipping?

No. NMFC codes are for domestic LTL shipments within the U.S., while harmonized system codes are used for international trade and customs.