Shippers often struggle when faced with determining the right NMFC code for their freight. The wrong number can lead to shipping delays, unexpected costs, and even shipment refusals by carriers. This makes it essential to ensure your freight is correctly classified.
Key Takeaways:
We’ll show you how your NMFC code is determined and how it can influence the overall cost of a shipment.
National Motor Freight Classification numbers, or NMFC codes, are used to price the shipping rates of LTL freight. These five- to six-digit codes are actually assigned by carriers, but shippers can still follow a few simple steps to narrow down the possibilities.
Companies should start looking for their NMFC numbers by consulting the NMFTA. This is the trade organization that oversees these codes, and they are used by all major LTL carriers in the United States.
They keep an extensive directory of NMFC numbers and corresponding freight, ensuring fair rates throughout the industry.
Other useful resources the NMFTA offers include:
With the help of NMFTA resources, shippers will have the materials they need to find their NMFC numbers.
The next step for shippers is to consider the details regarding their load. Aside from a shipment’s density (which I’ll get to in the next section), the NMFTA’s classification system takes into account the following details:
All of these variables can play a factor in determining the right NMFC code. Because the system breaks down product categories, it’s possible for similar items to still have different numbers assigned.
This could make it easy for products to be mislabeled. Therefore, each code should be carefully compared to the commodity being transported.
Density is actually the greatest factor in determining an NMFC code. To find out the density of their cargo, shippers will need a few key pieces of information about their freight.
This includes:
Businesses must get the weight of their commodity in pounds; just be sure to do this with a fully packed shipment, including the pallet base if used. Next, businesses will need to determine the height, length, and width of their freight in inches.
Multiply these dimensions together and divide the result by 1,728, which is the amount of cubic inches in a cubic foot. This amount will be the volume of the commodity.
To calculate the density, simply divide the shipment’s weight by the calculated volume. There are various freight calculators available to help you with the math itself. Be sure to always check your numbers, since reporting the wrong density can lead to incorrect NMFC codes and may result in additional fees.
Related: Freight Density: How it Shapes Your Shipping Strategy
After determining the density, shippers can use it to find which freight class their shipment is most likely to be labeled as. The NMFTA classification system has 18 different levels based on density range. These start at Class 50 (most dense, least expensive), all the way to Class 500 (least dense, most expensive).
Generally, the lower the density, the higher the class and vice versa. It’s a good idea for shippers to check their estimates against information provided by the NMFTA. They provide lists with examples of common item densities and their correct freight classes. Consulting this information will help ensure you’re on the right track
Completing the four steps we’ve discussed here will get you close to estimating what your freight class, and therefore your freight rate, will be. However, as far as the exact NMFC code, that can only be assigned by an LTL carrier.
You’ll be able to see it on your shipping documents, and you should keep a record of what codes are used. This is especially true if you happen to be contracting with multiple carriers.
There are four factors that determine how NFMC codes will impact the shipping price of certain commodities. These factors can also change the freight class assigned to your shipment, which in turn affects price.
These are:
I’ve already explained that density is the main determiner of freight class, so this should come as no surprise. However, it’s the other three factors that impact whether the density-based class remains the same for your final rate quote.
Goods that are harder to load or unload come with higher shipping expenses. The same is true for NMFC coded items that require special accommodations during transit.
For instance, a pallet of flat screen TVs may be dense, but because it needs to be handled more carefully, and likely can’t be double stacked, it will be more expensive to move.
The stowability of freight refers to how easy or hard it is to load and transport cargo with other commodities. Businesses who ship items that are difficult to store with other loads are likely to spend more on transport costs.
This could be goods requiring specific temperatures or even certain types of hazardous material.
Every kind of cargo carries some degree of liability during transit. In this case, we’re referring to items with a higher than usual risk of being stolen or damaged.
Higher risks may mean the need for additional security measures, different types of packing, or specific securing methods during transport. It also increases the likelihood of a shipper needing to file a freight claim against the carrier.
Consider that LTL shipping has some of the highest rates of damage in the freight industry, mostly due to the increased number of touchpoints. Anything that can bring down the risk of damage and decrease liability, is a good thing.
Let’s examine the average amount that gets paid per claim, as well as the number of claims that end up uncovered to give you a better idea.
Officially assigned NMFC codes, which are based on freight classes, will raise or lower the class used to charge you based on such factors. Let’s go back to the example of needing to ship a pallet of flat screen TVs.
Based on density, the shipment might fall into class 250, which is already fairly expensive. However, due to increased handling and liability for such a shipment, you might be charged as though it was class 300, increasing your rate further.
Not including NMFC codes or using the wrong one on your freight shipping documents can lead to dire consequences for shippers. Fortunately, following a few simple tips and good practices will ensure the right number is always given.
As always, we recommend working with a trusted carrier directly or working out a contract with a freight broker. In both cases, ensure the company or individual is working with the NMFTA by following their LTL freight rate guidelines.
Understanding the process used for finalizing NMFC codes can be a serious challenge. At USA Truckload, we have a team of logistics experts that will ensure your LTL freight is properly classified and quoted.
All you have to do is schedule a consultation with one of our shipping professionals. You can also access some of our other services.
These include:
If you’re ready to use our services, then fill out your RFP today. Our team can also be reached at (866) 353-7178 if you have any questions or concerns.
R+L Global Logistics
315 NE 14th St., Ocala, FL 34470
