From the Editor’s Desk

In U.S. domestic shipping, freight class is one of the most important—yet often misunderstood—concepts for businesses managing Less-than-Truckload (LTL) shipments. Set by the National Motor Freight Traffic Association (NMFTA), freight class provides a standardized way to categorize commodities for pricing and handling purposes.

For shippers, choosing the correct freight class can mean the difference between predictable costs and unexpected surcharges. It also impacts claims, liability coverage, and even how freight is handled during transit. Misclassification is one of the most common errors that drive up freight costs unnecessarily.

This article explains what freight class is, how it is determined, and why it matters for businesses aiming to reduce costs, improve 3PL visibility, and strengthen their digital supply chain strategy.

Key Takeaways

Definition

• Freight class is a standardized system (Class 50 to Class 500) that determines how commodities are rated for LTL shipping in the U.S.
• It is administered by the NMFC (National Motor Freight Classification) system.

Cost Implications

• Freight class directly affects shipping rates, with higher classes usually costing more per pound.
• Incorrect classing can lead to costly re-billing and disputes with carriers.

Strategic Importance

• Accurate classing supports freight cost reduction and prevents claims issues.
• Predictive logistics and digital tools now help automate classification, reducing errors.

How Freight Class is Determined

1. Density

Density is the most common factor, calculated as weight divided by cubic feet. Lower-density shipments take up more space relative to their weight and typically fall into higher classes.

2. Stowability

Items that cannot be easily stowed (e.g., odd-shaped machinery or hazardous goods) may receive higher classes due to special handling requirements.

3. Handling

Cargo that is fragile, hazardous, or requires special equipment for handling will generally be assigned a higher freight class.

4. Liability

Products that are more prone to damage or theft (e.g., electronics, luxury goods) often have higher liability considerations, impacting their classification.

Why Freight Class Matters

Cost Efficiency

Freight class directly impacts LTL pricing. Choosing the correct class avoids reclassification fees, unexpected surcharges, and disputes with carriers.

Claims and Liability

Inaccurate classing can void insurance claims if the carrier determines the shipment was misclassified.

Operational Efficiency

Correct classification streamlines carrier operations, reducing delays and ensuring smoother freight handling.

Best Practices for Shippers

Use a Density Calculator

Most 3PLs and digital platforms provide density calculators to determine the right class based on dimensions and weight.

Leverage Digital Supply Chain Tools

Automated classification tools integrated with TMS (Transportation Management Systems) help prevent costly human errors.

Work with Experienced 3PLs

3PLs ensure proper classification, negotiate competitive rates, and provide visibility into cost structures.

Audit Freight Bills

Regular audits can catch misclassifications and ensure consistent savings in freight operations.

Beeontrade’s Perspective

At Beeontrade, we see freight class not just as a pricing mechanism, but as a strategic lever for cost control and supply chain efficiency. With the right combination of predictive logistics tools and 3PL expertise, shippers can reduce costs, eliminate disputes, and gain confidence in their freight operations.

Sources

• National Motor Freight Traffic Association (NMFTA)
• FreightWaves – LTL Freight Insights
• Journal of Commerce – Freight Market Trends
• The Loadstar – Freight and Logistics Analysis