Insider Blog

FCDC Chairman and NMFTA Executive Director to offer insight into classification and the role of NMFTA at SMC³ supply chain hybrid online education course

The National Motor Freight Traffic Association (NMFTA) represents interstate, intrastate, and international motor carriers. Since 1956, the NMFTA has served the interests of the motor carrier industry.

During a special hybrid class from SMC³’s online education program – LTL203: LTL Carrier Pricing & Costing, Joel Ringer, chairman of the Freight Classification Development Council (FCDC) at the NMFTA, will provide an in-depth discussion on how the NMFTA plays a unique role in the classification of LTL freight. Ringer and his colleague Paul Levine, executive director at NMFTA, recently took the time to give insight into the association.

For those who might not know, what is the NMFTA and whom does it serve?

The National Motor Freight Traffic Association, Inc. (NMFTA) is a nonprofit membership organization headquartered in Alexandria, Virginia. Its membership is comprised of motor carriers operating in interstate, intrastate and foreign commerce. NMFTA develops and publishes the National Motor Freight Classification® (NMFC®), a standard that provides a comparison of commodities moving in commerce.

NMFTA assigns the Standard Carrier Alpha Code (SCAC®), a unique two-to-four-letter code used to identify transportation companies.

NMFTA also assigns the Standard Point Location Code® (SPLC), a numeric coding system designed to identify points in North America that originate and receive transportation with their geographic locations.

NMFTA is engaged in a number of other activities to promote, advance and improve the welfare and interests of its members including establishing cybersecurity best practices, advocacy before federal and state agencies on a broad range of issues, and working with the U.S. Department of Transportation on the safe transportation of hazardous materials.

What role does the NMFTA play in carrier pricing and costing?

NMFTA does not engage in motor carrier pricing. Freight rates are set by the individual carrier.

NMFTA, through its Freight Classification Development Council (FCDC), establishes and maintains the National Motor Freight Classification (NMFC), a voluntary standard that provides a comparison of commodities moving via motor carrier; principally, less-than-truckload (LTL) carrier. Classes are assigned based on an analysis of the particular product’s transportation characteristics, i.e. density, handling, stowability and liability. Together, these characteristics establish the product’s “transportability,” and thus, reflect the respective costs associated with providing LTL service.

There are 18 classes, ranging from a low of class 50 to a high of class 500. Generally speaking, the more-favorable the transportation characteristics, the lower the class, and the less-favorable, the higher the class. In this way, the NMFC provides valuable costing information that the carrier can use in making pricing decisions.

Spend this spring learning about the intricacies of LTL with SMC³’s LTL203: Carrier Pricing and Costing session beginning April 15, 2021. Register for the exclusive supply chain education offering today!

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Categories: Education, Supply Chain