The National Motor Freight Classification (NMFC) sets the standard for classifying freight for LTL freight companies based on four characteristics, which are density, stowability, handling, and liability. These commodities are grouped into one of 18 different freight classes that range from 50 to 500. Classes include things like specialty freight, expedited freight, oversize freight, overweight freight, etc.
Here is a brief explanation of the four factors used to determine freight class:
Density
The density is known as the space the item will occupy with its weight. Density is determined by dividing the mass of an object by its volume in cubic feet. To calculate volume, you must multiply the length by the width and the height, and then divide by 1,728 as long as you measure everything in inches. Then, divide the weight by the volume. To accurately calculate the density of your shipment, all packaging and materials must be factored into the calculation.
Stowability
This refers to how easily the freight can be loaded, stored, and stacked on the truck. It's expected that most freight should easily be stored on the train, ship, or truck, but some products are more difficult to stow. For example, overweight freight, hazardous materials, fragile pieces, or oddly shaped objects will require some type of special treatment.
Handling
Handling is very similar to stowability in that it involves the ease or difficulty of handling certain shipments. Again, less than truckload shipments that are heavy, hazardous, fragile, or oddly shaped will need special attention.
Liability
Finally, liability refers to the probability of your freight being damaged, stolen, or otherwise mishandled in some way. Freight that is prone to explosions, spontaneous combustion, perishing, or breaking will carry a higher liability.
Potential of Less Than Truckload Freight Shipping: Understanding Shipping Classes and Characteristics
The less-than-truckload (LTL) market is estimated at roughly $35 billion, and part of that could be due to the variety of shipping classes offered. When it comes to determining the class for LTL shipping services, these four characteristics help determine whether the shipment is specialty freight, expedited freight, overweight freight, and more, as well as the class number.
FAQs
Here are the factors:
- Weight & Density. Weight and density are the two most basic aspects of how LTL shipping rates are calculated. ...
- Freight Classification. ...
- Base Rates & Discounts. ...
- Minimum Charges. ...
- Origin & Destination. ...
- Surcharges & Accessorial Fees.
*Please note: Your LTL freight's actual classification, as established in the National Motor Freight Classification™ (NMFC™), will be based on your commodity's demonstrated transportation characteristics, including density, stowability, handling and liability.
What are the 4 factors that determine freight class? ›
Freight class is a numerical rating assigned to commodities transported via LTL freight shipping. The NMFTA defines 18 different freight classes, ranging from 50 to 500. These classes are based on four primary characteristics: density, stowability, handling, and liability.
What are the characteristics of less than truckload? ›
Key Characteristics of LTL Shipments
LTL shipments have smaller cargo volumes, usually defined under the following characteristics: Less than an entire truck. Between 150 and 15,000 pounds. Less than 12 linear feet of trailer space.
What is LTL shipping requirements? ›
Less than truckload freight defined
and measure up to 165 inches in length and girth combined, or no longer than 108 inches in length. LTL: For shipments that weigh more than 150 lbs. but less than 15,000 lbs., are no more than 10 pallets and no longer than 12 linear feet.
How are LTL rates calculated? ›
LTL rates are typically calculated using a weight-based scale. A unit of measurement known as the hundredweight (CWT), sometimes referred to as the centum weight, is used to factor pricing. The more a shipment weighs, the lower rate-per-hundred pounds it will have.
How can you choose a freight class for a less than truckload shipping? ›
How are LTL Freight Classes Determined? The freight classes are determined based on a load's density, stow-ability, handling, weight, packaging, liability, and dimensions. For example, the densest and “shipping-friendly” loads will fall under class 50.
What three characteristics are used to determine freight class? ›
Four key characteristics determine the freight class of a commodity: density, stowability, handling, and liability.
How are freight rates determined? ›
The main determining factors of freight rate are: mode of transportation (truck, ship, train, air craft), weight, size, distance, points of pickup and delivery, and the actual goods being shipped.
How do you determine class when shipping freight? ›
To calculate the density and class, follow these steps or use the calculator below
- First measure the height, width, and depth of the shipment. ...
- Multiply the three measurements (height x width x depth). ...
- Finally, divide the weight (in pounds) of the shipment by the total cubic feet.
Freight class or National Motor Freight Classification (NMFC), is a standardized way of classifying less-than-container load (LCL) freight shipments based on certain characteristics. For ocean shipping, cargo freight class is determined based on a variety of factors, including value, weight, length, density and more.
What are the 4 types of freight? ›
There are four major types of freight transportation available for shippers to use in the world of freight shipping. The primary ones are by ground (road), rail, ocean, and air. Although these are the main categories of freight transportation, each method has their own processes that differ from one another.
What determines LTL class? ›
The National Motor Freight Traffic Association (NMFTA) determines freight classes. Generally, every type of product or commodity has a National Motor Freight Classification (NMFC), which corresponds to a specific freight class number for LTL shipments.
What constitutes LTL? ›
Less than truckload freight shipping (LTL) is used for the transportation of small freight or when freight doesn't require the use of an entire trailer. This shipping method can be used when freight weighs between 150 and 15,000 pounds.
What is the disadvantage of LTL? ›
While in case of LTL, your shipment will be transferred multiple times before reaching the final delivery location. This increases the risk of damage and even missing items.
What determines freight rates? ›
Freight Rate, the cost of transporting goods, is reflective of a number of factors aside from normal transportation costs. The main determining factors of freight rate are: mode of transportation (truck, ship, train, air craft), weight, size, distance, points of pickup and delivery, and the actual goods being shipped.
What are the factors that determine transportation rates? ›
Factors affecting transpiration
- temperature.
- humidity.
- air movement.
- light intensity.
While ocean freight has longer transit times, its cost-effectiveness for bulky cargo can often outweigh the speedier and pricier option of all-land transport.
- Delivery speed. While the promise of fast delivery is tempting, it comes at a premium price. ...
- Fuel fluctuations. ...
- Accessorial services. ...
- Supply market dynamics.
The pricing of LTL considers the size, weight, shipping distance, and freight classification. Other factors that affect your costs could be special services required, such as special handling, insurance, or expedited delivery.
