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).
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.
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.
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:
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.
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:
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.
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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).
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.
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.
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:
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.
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:
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.
