LTL Freight Class and NMFC Codes: What’s the Difference?
Chances are, if you’re in the logistics industry, you’re probably more than familiar with less than truckload (LTL) and full truckload freight shipping. And while both of those are very similar in lots of ways, they do have some vital differences that set them apart from one another. One of those key differences just happens to be how shipments are quoted and priced.
Understanding LTL Freight Classes
Calculating costs for LTL shipping can be tricky so to make it easier, commodities have been broken up into several categories, which are known as LTL freight classes.
For the remainder of this article, we are going to break down what “LTL freight class” is along with NMFC codes entail so you can better conceptualize the significant impact they make in LTL shipping.
Understanding this information is crucial to making better educated shipping decisions and can have a huge impact on business. Understanding the nuance of LTL Freight Class versus NMFC codes can be tricky to understand at first, but this article will break it down.
The Definition of an LTL Freight Class
First, we need to understand what freight class actually means. Freight class is a system used industry-wide that classifies commodities based on a numeric system. There are 18 different freight classes and they span from class 50 to class 500. It was created by the National Motor Freight Traffic Association (NMFTA).
The commodities you plan to ship will fall into one of those 18 categories depending on a few different metrics (we will dive into these metrics later on in the article). The 18 categories are easily accessible online.
The Definition of an LTL Freight Class
First, we need to understand what freight class actually means. Freight class is a system used industry-wide that classifies commodities based on a numeric system. There are 18 different freight classes and the span from class 50 to class 500. It was created by the National Motor Freight Traffic Association (NMFTA).
The commodities you plan to ship will fall into one of those 18 categories depending on a few different metrics (we will dive into these metrics later on in the article). The 18 categories are easily accessible online.
You may think weight is just weight when it comes to shipping but the differences between products and commodities actually matters immensely. Different products will belong to different freight classes and your shipment’s freight class will play a huge role in deciding the rate of that specific shipment. Making sure you are classifying into the correct category can ultimately cost a company money if not done correctly.
To put simply, to get an accurate LTL quote, you need the correct freight class. They are essential to each other.
Because the LTL carrier will load and unload your product a few times, and there will be other commodities along for the ride with yours, each pallet’s specifics–dimensions, packaging, fragility, etc. all play a part.
Those details factor into how efficient your shipment is to transport. However, this is not the case for full truckload as your commodity will stay put in the truck during its entire journey.
How Freight Class Impacts Shipping Costs
Although it may seem counterintuitive, high density items will have low freight classes while low density items like a bag of gold dust for example will have a high freight class.
The lower the freight class, the lower the rate. The higher the freight class, the higher the rate.
For further explanation, check out the freight class cost per pound chart to the right.
What Specific Commodities Make Up Each Freight Class?
As you have already been told, there are 18 different freight classes starting at class 50 and going all the way to class 500. Here, we break it down so you can see how individual commodities are split up.
Remember that these are estimates and only apply to carriers that base their freight classifications on density alone.
4 Helpful Freight Class Tips and Tricks
1. Weigh Your Freight Using the Right Resources
Make sure to use an NTEP-certified floor or forklift scale to weigh your freight and that the scale is free of any other material. The weight is not crucial now, but you will need it further down the line when calculating density.
2. Calculate Correctly
Do not skimp when it comes to measurements. Always remember to measure the extremes. When your commodities are on a pallet, measure the length and width of the commodities and pallet together, which is considered your entire shipment.
Bonus tip: Try your best to avoid any overhang if your freight is resting on a pallet. The overhang can incur prices increases later on and is more likely to be damaged or cause damage during transit.
3. Calculate the Density
Calculating the correct density is vital in the classification of your freight, but before you can calculate the density, you first need to figure out cubic feet. To do this, multiply your freight’s length, width and height together, then divide that number by 1,728, as there are 1,728 cubic inches in a cubic foot.
To calculate density, divide the weight of your shipment by the total cubic feet.
4. Decide on the Correct Freight Class
Choosing the freight class can get a little tricky as a lot is involved here. The freight class chart groups commodities into 18 classes from 50 to 500, with lower classes costing less to ship. Companies determine classes by the shipment’s weight per cubic foot (density) as well as stow-ability, handling, and liability.
In general, items will be classed higher despite their density if they are more valuable, more difficult to stow, harder to handle or have more liability, meaning they are more likely to be stolen.
To make sure your calculations are accurate, make sure to have an NMFC classification book ready.
How NMFC Codes Differ from Freight Class
Not only do commodities have a freight class, they also have what we call a NMFC code.
NMFC stands for National Motor Freight Classification. Although many people interchange these two terms (LTL Freight Class and NMFC Codes), they are not quite the same. Freight class represents the category of items while NMFC codes relate to the individual commodity. It breaks down freight classes one step further. These were created to streamline freight categorization and pricing across the industry.
For example, two items, computers and refrigerators may both belong to the same freight class of 92.5 but their NMFC codes are 5700 and 6500.
It’s important to know that NMFC codes and classifications are based on four distinct factors: density,handling, stowability, and liability.
Density
Determined by an item's weight and dimensions. The higher the density, the lower the class and the lower the cost. This may seem backward at first glance, but consider this: Carriers love shipping freight that is heavy and doesn’t take up much space compared to its weight. This means they can fit more product on their truck, which means more cash in their wallets.
Handling
Handling specifically concerns the item’s ability to be handled as the freight is loaded and unloaded from one LTL terminal to another LTL terminal. Factors such as an item's dimensions, fragility, and packaging play a role in how easy or difficult an item is to handle. It's quite possible that any freight requiring special handling will be assigned a higher freight class.
Stowability
Refers to how the shipment can be arranged with other freight in the transport vehicle. A good rule of thumb is to consider an item’s ability to be “stowed” or transported in relation to other items. This takes into account hazardous shipments (which can't be moved with non-hazardous shipments) or items with odd dimensions that make it difficult to load around them.
Liability
Liability takes into account the probability of the shipment being damaged or stolen, or damaging other adjacent freight. Factors to consider here are how perishable the items are, the likelihood of being the target of freight theft, item combustibility, as well as how likely the freight could damage (or be damaged by) other freight in the same truckload.
Why NMFC Codes Matter
In basic terms, NMFC codes are important because they assist LTL carriers to understand how difficult or easy it will be to ship a particular commodity.
Freight class primarily takes density into account. NMFC codes, on the other hand, get much more specific and account for a variety of factors that impact the efficiency of the shipping process.
Here are some of the factors NMFC codes to consider:
Weight, Length & Height
Commodity Type
Density of Freight
Ease of Handling
Value & Liability
Packaging
How to Determine NMFC Codes for Your LTL Shipment in 5 Easy Steps
To find specific NMFC codes, you can use an NMFC classification tool, such as ClassIT, and follow the steps below. If you need additional support on how to understand this complex topic, don’t hesitate to contact us here.
Step 1:
Search for the commodity within the tool.
Step 2:
Select the commodity/NMFC that best fits the freight you are shipping.
Step 3:
Calculate the density of your commodity with a freight calculator (you will need to know your commodity’s exact length, width, height, and weight).
Step 4:
Select the correct class based on the density of your commodity.
Step 5:
Then you will see the appropriate NMFC codes.
Need Additional Support?
LTL shipping involves a great deal of complexity but working with an experienced provider can simplify the process.
R2 Logistics LTL specialists are available to help you calculate the density of your commodities, determine their freight class and select the appropriate NMFC codes for your shipment.
How Can Properly Executed TMS Affect Your Supply Chain Spend?
L.I.N.K.| Continuous Improvement in the Supply Chain
Intermodal Freight Solutions
Along with our other available capabilities, R2 also offers your business intermodal services. If you would like to utilize this service or explore its options, our experienced staff can assist you in taking advantage of its possibilities. Let us help you find the most efficient and manageable cost for your shipment.
Intermodal Freight Benefits
– R2 associates are on hand 24/7 to assist in any matter
– We can accommodate cost effective solutions for any number of loads you may have
– Watch your shipment move from Point A to Point B online
– Multimodal transition is done seamlessly as your needs alter
– A contracted capacity with the ability to move your freight in the U.S., Canada, and Mexico
Managed Transportation Solutions
As supply chain complexity is in constant evolution, ingenuity is vital for gaining a competitive edge. Our expert associates provide the ability to appraise your logistics network to expand and apply more cost effective and service oriented solutions. Do you have just one requirement or several? The R2 team is only a phone call away to help position your company above the competition
R2’s Managed Transportation Program Includes:
– Collaboration – your business is our business. We will aid in the arrangement of meeting your supply chain demands with corporate guidelines
– Evaluation of your distribution system and design of the most cost effective network
– Providing transportation direction to bring control to your shipping budget and improving response time
Truckload Capacity
With R2 Logistics’ excess of contracted carriers, the options are endless to find the right solution to move your freight. We also understand that getting it moved isn’t your only concern. That’s why it’s our first priority to choose the right option for you.
After the selection has been made we begin the process of following the freight from start to finish. At least 5 check calls are made for each shipment to ensure its security, and if you ever have a question, we’ll have an answer.
Truckload Freight Benefits
– We’re committed to you and your business – we’re available 24/7
– We set you up with your ONE and ONLY account representative
– We are not bound by U.S. borders – we make it easy for you to move shipments to and from Mexico and Canada
– Follow your shipments quickly and easily online
– Countless options – whether it’s for one load or for your entire supply chain, R2 has the solution you’re seeking
LTL Freight Simplified
Knowing when to use Less Than Truckload shipments increases productivity, reduces freight spend, and streamlines freight shipping. LTL is ideal when freight doesn’t require the use of an entire trailer and weighs between 150 and 15,000 pounds.
Our relationships with the nation’s leading LTL carriers, allows R2 to pass our rates to our customers. Beyond our competitive rates, we have simplified the LTL shipping process with our innovative and game-changing Transportation Management System.
Using our TMS, shippers can realize the rewards from the moment they log on. With R2’s cloud-based TMS, shippers have access to real-time pricing, capacity across multiple carriers, and actionable reporting analysis.
LTL Freight Benefits with R29
– Analyze your logistics network and improve its current state
– Competitive rates pre-negotiated with our network of LTL carriers
– Ability to instantly quote, book, track and manage all shipments with R2 TMS
– A dedicated LTL freight expert to help with any of your freight questions
– Consolidated invoicing for all your shipments
– Unparalleled reporting capabilities making performance and cost analysis simpler than ever
Expedited & Air
We can understand that there’s never enough time in the day. If you have a shipment that should have been moved 24 hours ago we have the means of getting it there now. We have a multitude of contracted expedited and air freight carriers who can move your freight for you in a safe and reliable fashion. Let us do the work for you. We will track the shipment and let you know when it has arrived at its destination.
Expedited and Air Freight Benefits
– Dedicated dispatch and freight management from all R2 associates
– Extra precaution and 24/7 supervision for sensitive shipments
– ONE point of contact to answer any and every need you may have
– Customized options allowing you to utilize the best combination of service and value
– Accessibility to a surplus of different vehicle or trailer types as well as single and team driver
Ocean Freight Solutions
With a wide range of Ocean Freight services covering multiple equipment types and consolidation services, we ensure your cargo reaches its destination in the most cost-efficient manner. Our long-term relationships with ocean carriers allows R2 Logistics to provide both Less-Than-Container Load (LCL) and Full-Container Load (FCL) shipments. Our in-house team of international freight specialists manage your freight and also offer customs clearance and tariff classification.
R2’s Ocean Shipping Benefits
– Competitive rates pre-negotiated with our network of ocean carriers
– Use FCL shipping for valuable cargo that you wouldn’t want with another person’s shipment. FCL is also a good option if you need to ship loads of 12+ pallets
– LCL shipping means you share container space with other cargo. This can be a more cost-effective option for shipping smaller loads overseas.
– The ease of working with one company for all your logistics needs—including ocean, air, customs brokerage, trade compliance, and surface transportation
Reverse Logistics
Simply put, Reverse Logistics is the return of products to a manufacturer or distributor from their customer. A well-organized Reverse Logistics program will result in direct benefits such as improved customer satisfaction and reductions in warehousing and distribution costs. Studies show 8-9% of all customer shipments are returned and 25-30% of e-retail shipments are as well. Managing Reverse Logistics costs are critical to running an efficient Supply Chain.
Reverse Logistics Benefits
RA Numbers & Accounting
RA numbers are captured in the R2 TMS and linked with BOL numbers and Carrier PRO numbers resolving accounting issues due to missing RA numbers.
Damage & Recouping
Strong relationships with R2’s network of LTL carriers ensures shipments are handled with care.
Cost
The R2 TMS will select the most effective carrier for both transit time and cost. Customers are no longer held “hostage” with only one carrier choice.
Flatbed & Specialized Freight Solutions
When you’re hauling a shipment that’s oversized and overweight, attention to detail is crucial. The attention needed is exactly what you will receive with R2. With our vast network of nationwide carriers we can solve the problems you may face with your specialized shipment. Safety always plays a major role in any shipment moved under our watchful eyes. This makes us the easy choice for your next shipment requiring special handling.
Flatbed & Specialized Freight Benefits
– 24/7 dispatch supervision from start to finish
– Guaranteed certified and insured carriers used for every load
– ONE account executive available for any assistance needed
– Online tracking and document retrieval capability
– Shipping solutions designed to meet your unique needs