Freight classification helps simplify the shipping process for all parties involved. It allows them to determine the pricing of their services and classify goods correctly.
The National Motor Freight Traffic Association (NMFTA) introduced NMFC codes to standardize freight transportation expenses after transport industry professionals expressed such a need.
What are NMFC codes?
NMFTA launched NMFC (National Motor Freight Classification) codes as a classification method for freights. It is applied for all types of freight and helps categorize commodities.
The primary objective of establishing these codes was to have a transparent system for freight transport costs. Using the codes, involved parties can compare the goods. It enables everyone to practice fair measures during transportation. Shippers and carriers could also negotiate the expenses conveniently using the system.
Carriers also utilize the NMFC codes to quote shipping rates and expenses to customers during a business transaction.
Why Are NMFC Codes Important?
NMFC classifies a shipment's contents according to the respective freight class category. Two shipments might be under the same freight class but can have different NMFC codes according to their contents.
These codes are essential as they assist carriers in keeping track of the shipment items, which makes transportation simpler. By applying accurate NMFC codes to items, carriers can avoid unexpected transportation costs and delays in delivering goods.
Besides helping shippers organize goods properly, these help enhance logistics and supply chain operations.
What determines NMFC numbers?
The primary factor for determining the NMFC numbers is the transportability of goods or how conveniently they can be transported. Various factors decide the transportability of a particular shipment.
These factors aim to ensure that goods are properly packaged and transported to their destination.
Density This is the measure of the amount of space occupied by the commodity and is relative to its weight per cubic foot. Heavy commodities will have a lower classification and might be expensive to transport.
Freight Stowability This factor talks about the difficulty of storing and transporting a commodity. If the freight is bulky and consists of hazardous goods, it will not be easy to ship it with other goods.
Ease of handling NMFC codes also focus on the ease of handling the goods while shipping them. Hazardous and fragile items will be costlier to ship and will be categorized under a higher freight class. Shape, weight, and size are factored in while determining the ease of handling a particular commodity.
Liability Goods prone to suffer damages or are sensitive to transport will incur higher shipping costs. These goods will have a higher freight class and NMFC code. The liability factor also considers perishable goods to be sensitive and categorizes them under a higher class.
How many NMFC classes are there?
NMFC has 18 different freight classes, which range from classes 50 to 500. For example, class 50 goods are of high density, low value, and low cost. But, class 500 goods are of low density, high value, and high cost.
These classification numbers help carriers and shippers define tariffs for a particular shipment and decide the associated customer charges. If the density of a particular product is low, then its freight class will be higher.
How do I find my NMFC code?
It is important to consult with the freight company that is shipping the goods to determine the exact NMFC code. This way, determining shipping expenses and classifying the goods will be simpler.
Another method to determine the NMFC code is to contact the NMFTA Commodity Classification Standards Board. One needs to visit the official website of NMFTA in this regard.
What is the difference between freight class and NMFC?
Although freight class and NMFC are interrelated terms used in shipping, there are some differences.
Freight class is a system that classifies goods using specific numbers, like classes 50 to 500. As the products will fall under different freight classes, the expenses or rates of a shipment will vary.
These classes are essential for commodity categorization during LTL shipping. This type of shipping service deals with commodities weighing between 150 and 15,000 pounds.
Freight classes specify the category of goods, but NMFC codes specify the details of a particular commodity. While freight class primarily considers the density of the commodity, NMFC considers the following factors to determine the shipment's code:
- Commodity type
- Freight density
- Length, height, and weight
- Packaging
- Liability
- Ease of handling
- Value
How to Determine the NMFC Code for an LTL Shipment?
The carriers who are NMFTA members have access to NMFC codes and the catalog. To make these codes easily accessible, the NMFTA has created the ClassIT portal. It contains all the NMFC codes and other essential shipping information.
To determine the NMFC code for any LTL shipment, users will have to follow these steps –
Visit the ClassIT portal and search for the commodity
If no results are found, search using the plural form of the item
Select the item/NMFC that matches the shipping freight
Utilize the freight calculator to find the item's density. The exact length, weight, height, and width are required.
After receiving the resultant density, select the appropriate item class
The appropriate NMFC codes will appear
The density calculation needs to be accurate to avoid any extra shipping charges.
Conclusion
Besides determining the correct freight class, NMFC codes help carriers understand the type of packaging needed for a commodity. It can be general packaging or commodity-specific packaging.
According to the NMFC code and freight class, the appropriate packaging can be used to preserve the shipment. It will also reduce the possibility of damages, leading to the safe transportation of the cargo to its destination.
That is why it is essential to stay updated with the latest NMFC codes, as they may change with the introduction of new items.
