Freight all kinds (FAK) shipping and how you can use it

What is FAK, and how can you get it?

Even for veteran less-than-truckload (LTL) shippers, determining how a carrier will charge for certain types of freight can be confusing. Complicating matters is the fact that LTL carriers use a variety of different methods to calculate rates for their customers. One that can be especially beneficial for shippers who combine different types of freight onto individual pallets is called freight all kinds (FAK).‍

How are prices for LTL shipping usually determined?

The most common pricing structure that LTL carriers use to determine the cost of shipping different types of freight is known as the National Motor Freight Classification (NMFC).

NMFC freight classification is a system that was created and continues to be maintained by the National Motor Freight Traffic Association (NMFTA). It’s used for all interstate, intrastate, and foreign transportation of LTL cargo. Individual types of commodities are assigned NMFC codes that organize them into standardized freight classes based on their transportability.

LTL shippers transport a wide variety of products of different densities, liabilities, and handling considerations together in one truck. NMFC freight classes provide standardization that shippers and carriers use to determine shipping rates for different types of goods.‍

Freight Classes

There are eighteen NMFC classifications for LTL freight. The lowest and least expensive is freight class 50. The highest and most expensive is freight class 500. Lower freight classes include freight that is dense, easy to handle and pack, and inexpensive. Freight that is fragile, light for its size (that is, not dense), and of significant value is classified higher. Aside from very expensive items like gold, the general rule is that the denser a commodity is, the lower its classification.‍

Four Key Factors that Determine Freight Class

The main consideration when assigning freight class is essentially how easy it is for carriers to transport a type of freight. This includes qualities like weight, dimensions, ease of handling, and value. These are the four primary elements:

• ‍Fragility – Freight that can be easily damaged while loading, unloading, or during the shipping process requires carriers and their workers to spend extra time dealing with it, as extra care is needed. This might mean that they cannot use certain machinery or automated processes that would otherwise speed things up, resulting in higher freight classes for these types of commodities.‍
• Stowability – Goods that are easily packed onto an LTL truck along with other freight tend to have lower freight classes. Many different shipments from individual shippers are combined into one container when shipping LTL. Freight that can be stacked and fits well on standard pallets makes this easier for carriers to do. Types of freight like this will have lower freight classes. Items that are oddly shaped can be difficult to pack into a truck with other freight, and hazardous items may be subject to regulations that do not allow them to be transported along with certain types of freight, resulting in higher freight classification.‍
• Liability – Theft, loss, and damage, while not particularly common, are all things that can happen when shipping freight. For goods that are of high value, such as gold or high-end electronics, this results in significant liability issues for carriers. Commodities of this type are assigned higher freight classes.‍
• Density – Goods such as sand or concrete mix are heavy for their size; in other words, they are very dense. They are examples of the lowest of the freight classes, freight class 50. Ping pong balls are just the opposite. They take up a lot of space while weighing very little, and are found in the highest freight class, freight class 500, and will be more expensive to ship.

‍What Is Freight All Kinds?

By now, it should be clear that classifying and pricing freight for shipment is highly complex for shippers and carriers alike. FAK is a designation created by the NMFTA that allows carriers to combine multiple freight classes into one freight rate to simplify pricing. It is frequently used when a shipper puts multiple types of freight from different freight classes on one pallet or in the same shipment. The shipper and the carrier agree to a rough average freight cost of all the different freight classes to avoid having to individually weigh and measure each component of the shipment, saving time and energy for all involved.‍

How to Get an FAK Rate

FAK rates are usually negotiated between a shipper and a carrier. In order to meet a carrier’s requirements to be given an FAK rate, shippers may have to meet the following criteria:

• Easily packable and stackable shipment
• Meet minimum freight charge
• Minimum number of different NMFC classes in shipment
• Frequently and regularly book shipments with the carrier

If you meet these or other conditions required by your LTL carrier, you may be able to book your shipments at more favorable rates with FAK than you would get with standard NMFC freight classification.