RECENT CHANGES IN NMFC CLASSIFICATIONS
Scott McDevitt II, MBA, CTB
I help shippers optimize routing freight to meet their supply chain goals.
The less than truckload (LTL) classification system can come across a bit complicated. Commodities are grouped into one of 18 classes, ranging from a class 50 to class 500. The NMFC determines this class based on four transportation characteristics:
- Density – measured in pounds per cubic foot of your item. See our density calculator
- Handling – the degree of difficulty to load and unload the freight
- Stow-ability – accounts for shipments with odd dimensions that may make it difficult to load freight around.
- Liability – takes into consideration that freight may be damaged, lost or stolen
In order to avoid freight reclassification, it’s important to confirm your freight class using the correct NMFC code.
Earlier this month, the Commodity Classification Standards Board (CCSB) of the National Motor Freight Traffic Association (NMFTA) approved a change that will affect many manufacturers and distributors.
The change is from a 9 tier density breakdown to an 11 tier density breakdown. This appears to be a good change for shippers at first glance because there is now a class 60 and class 65 added for denser products rather than the lowest class of 70 prior.
Sub 4 used to read “4 but less than 6” at class 150. It will now read “4 but less than 6” at class 175. See the chart below:
There is no difference in density BUT the class will go from 150 to 175. This equates to an increase in charges of 16.4%!
These changes will be in effect on August 5, 2017.
Will your company be affected by this change? If so, what are some things you can do to protect yourself from these increases? If you’re using a Transportation Management System (TMS), you can easily gather your shipment data to see what percentage of your shipments will be impacted and then make strategic negotiations with the carriers.
Some benefits you can expect as a Translogistics customer are:
- PCF/Density calculation on every shipment
- Freight of All Kinds (FAK) structures are negotiated on your behalf to give you the best possible price on your shipments
If you’re worried about these recent changes in NMFC Classifications resulting in an increase of charges for your business, contact us today!