How does freight get classified?

Freight classification is an important part of LTL — shaping everything from pricing to operational efficiency. LTL freight is complex, comprising a wide variety of products and materials. Classification gets even more complicated with models like hub and spoke, where freight is moving constantly between different docks and trailers. With all this complexity, how does freight get classified?

The latest SMC³ LTL Online Education webinar pulled in two representatives from the National Motor Freight Traffic Association (NMFTA) to explain the various parameters of the National Motor Freight Classification (NMFC) system. Larissa Franklin, Packaging Development Manager, and Adam Mercer, Classification Development Manager, both helped demystify classification and gave participants a behind-the-scenes look at NMFTA’s priorities and their impact on how freight moves.

Transportation characteristics

The NMFC relies on four transportation characteristics to determine the transportability of a commodity. These characteristics have nothing to do with the revenue derived from a shipment — it’s simply a ranking system for how and whether a commodity is transportable. In order of importance, these characteristics are: density, handling, stowability, and liability.

Density  

“Ultimately,” Mercer said, “what a carrier is doing is selling space on their trailer, and density is a fantastic way to measure that.”

Density is measured in pounds per cubic foot. To determine density, NMFC does a density study of a given commodity based on data submitted or dock surveys. For example, commodities like electric toasters mostly have similar density scores, allowing for a more rough-and-ready classification. Other commodities, such as clothing, have a greater variety in density. In such cases, density is calculated according to subcategories that help determine its classification.

Handling

Handling refers to how easily a given commodity can be moved.

Stowability

This characteristic indicates whether a commodity can be easily packed onto a trailer.

Liability

Liability is the propensity of a commodity to cause damage or be damaged, considering factors such as its perishability and whether it is hazardous material.

While density is the most important variable, the relationship between all four variables help determine a commodity’s classification. These interactions can get complicated. For example, large glass panels are often quite dense and aren’t easily stowable because nothing can be stacked on them. When it comes to hazardous materials, the NMFTA must consider co-loading prohibitions and segregation requirements.

Different kinds of packaging

Along with basic freight classification, NMFC also provides minimum packaging requirements of different freight.

“The NMFC provides general packaging definitions and [detailed] specifications,” Franklin explained. “It can also provide specifications for packages approved expressly for certain commodities…it also provides performance-based packaging criteria.”

Packaging breaks down into three different categories:

• Primary packaging: the first layer of packaging that holds the commodities themselves.
• Secondary packaging: a larger box, usually fiberboard, that contains multiple primary packages.
• Tertiary packaging: a complete unit load of secondary packages, which must be secured together into a lift truck.

Packaging serves four functions:

1. Protection. First and foremost, packaging exists to protect freight from damage.
2. Containment. Packaging must also properly contain freight — ripped boxes are not acceptable.
3. Communication. Packaging also communicates details about the freight. For example, labeling it as hazardous material.
4. Convenience. Finally, how a product is packaged also influences its convenience. As a simple example — an individual consumer might want to order a single bag of chips to eat with a sandwich, whereas the consumer would order a large bag of chips for a party. A similar principle is at play when packaging LTL freight.

Changing the NMFC

Making changes to the NMFC is a five-step process, involving research, proposal writing, creating a docket, a disposition bulletin, and, finally, a supplement. For example, a shipper or carrier might bring up a problem pertaining to a part of the NMFC. Their team opens a research project to review the problem, then drafts a set of proposals to address the issue, which is included in a docket. These dockets are released publicly, then discussed at NMFTA meetings. The Freight Classification Development Council votes on the dockets. The voting results are shared in a disposition bulletin that is released shortly thereafter. These changes also appear in a supplement to the NMFC, which appears online and in book form.

For shippers and carriers wanting to stay plugged into changes to the NMFC, Mercer advised them to stay on top of this process, particularly the disposition bulletins. To influence their outcomes, he recommended attending the public meetings that shape the dockets themselves.

“If you want to know what the proposed changes are, then watch out for those dockets,” Mercer said.

Interested in joining LTL Hybrid Sessions? Register here: https://smc3.info/LTLedu