Monthly Archives: December 2023

Freight driver looking over a clipboard with freight class chart printed on it

How to Calculate & Determine Freight Class

Understanding Freight Class

What Is Freight Class?

Every type of product that a business ships is associated with a National Motor Freight Classification. This in turn relates to a precise freight class number, which typically ranges from 60 to 400. In addition to making sure that all organizations are paying correctly for the actual items they’re shipping, this also helps to avoid the wasting of time, money, and other resources throughout the logistics pipeline.

Why Is It Important?

Freight classes are determined by the National Motor Freight Traffic Association, otherwise known as the NMFTA for short. Because of this standardized measurement, it is possible to have standard pricing across all LTL freight carriers and businesses, dramatically simplifying the process and making it more cost-effective.

LTL Shipping and Metrics

Special Features of LTL

Short for “less-than-truckload,” LTL shipping does not require a business to fill an entire trailer for shipping. Instead, they’re sharing that space with multiple other organizations, thus only paying for the exact amount of space they need to use.

The major difference between this and other types of shipping is that LTL uses a “hub and spoke” shipping model. Instead of shipping items directly from an origin to a destination, LTL loads may go through various distribution centers for unloading, consolidation, and more before final delivery.

Determining Transport Metrics

Carefully figuring out transport details is crucial for improving operations. This process involves identifying and analyzing various key performance indicators (KPIs) to gain insights into the overall performance of a transportation network. Metrics such as travel time, vehicle speed, congestion levels, and reliability play a pivotal role in assessing the effectiveness of a transportation system. By using technologies like GPS and sensors, transportation engineers, urban planners, data analysts, and other stakeholders can collect information in real-time to see what’s going well and where they can improve operations. Analyzing these details helps improve transportation and allows for the development of plans to make it work even better in the future.

Factors for Freight Class

Density

One of the most important factors that determines freight class, beyond the actual commodity being shipped, is density. Take the total cubic feet of the items being shipped and divide by their total weight. The lower the density, the higher the freight class.

Handling, Liability, Stowability

The term “handling” refers to how easy something is to transport. Items that are oddly shaped, hazardous, fragile, or extremely heavy would require special handling and thus additional fees.

Liability relates to how likely an item is to get damaged or stolen in transit. Likewise, it has to do with how likely an item is to damage other items during shipment. The higher the liability, the more you will pay.

Finally, stowability assumes that, provided it has been packaged properly, freight should be easy to stow during transportation. This includes not only in trucks but on trains, boats, and even planes. If a shipment is particularly difficult to load and stow or if certain precautions must be taken, it will usually correspond with a higher freight class.

Calculating Freight Density

Step-by-Step Guide

First, measure the length, width, and height of the shipment in question. Be sure to include all pallets and other packaging materials.

Multiply the height, width, and length measurements together. The number you get is the total cubic inches of the shipment. Divide that number by 1728 to convert it to cubic feet.

Next, find the weight of your shipment, which should be measured in pounds. Once identified, divide the weight by the cubic feet. This will give you the number of pounds per cubic foot, which is otherwise known as density.

At that point, all you have to do is look at the appropriate freight class chart to find the freight class for your shipment.

Freight Class Codes

Classes and Chart

Remember that freight classes are an industry standard, so any freight class chart you look at should contain the same information. If your freight class code is 60, for example, you’re likely shipping something along the lines of car parts or other accessories. A freight class code of 77.5 usually equates to items like tires and bathroom fixtures. A freight class code of 92.5 refers to computers, monitors, refrigerators, and similar large, fragile items.

3PLs and Freight Class

Some third party logistics providers may have their own specific guidelines that you must use when determining freight class. So long as you have measured all your shipments appropriately, this should not be difficult to determine. You’ll still have accurate data to work from when determining which class you fall into (and what rate you will pay), even if the price is ultimately different from what is considered an industry standard.

Optimizing Density

The number one way to optimize the density of your shipments is to make use of every last inch of space available to you. This is why a lot of businesses invest in custom shipping materials that leave little to no wasted space in a box. Doing so may cost a bit more upfront as opposed to using “one size fits all” materials, but it can save you quite a bit of money on logistics costs in the long run.

In other words, there should be as little empty space in a box or package as possible. If you have to, use airbags or bubble wrap to fill in those gaps. This will help provide a cushion to the goods being shipped without adding too much in additional weight.

Speaking of dimensions, you’ll also want to make sure that you’re measuring your shipments as accurately as possible. Even a height that is off by a few inches or a weight that is off by a few pounds can make a major difference in terms of how much you think the load weighs, which will impact density and how much you’ll pay as a result.

Finally, make sure that all shipments are loaded and secured as carefully as possible. Boxes that are shaped similarly should all be grouped together to maximize how much you can fit on a pallet. Heavier items should always be at the bottom to create a stable foundation. Everything needs to be secured in place using plastic wrap to prevent the weight from shifting. The tighter you can pack everything, the more accurately you’ll be able to measure — and the more you’ll save on shipping as well.

If you’d like to find out more information about how to calculate and determine freight class, or if you have any additional questions that you’d like to go over with someone in a bit more detail, please feel free to contact Advanced Commercial Capital today.

female freight broker, sitting at a desk with a laptop, using a headset to call out to freight clients

What is a Freight Broker?

What Does a Freight Broker Do?

Think of a freight broker as something of a “middleman” between two important parties – a shipper and a carrier. As a business owner, handling the logistics of shipping yourself can be an often frustrating and time-consuming affair. You’ll need to constantly communicate with multiple carriers, deal with the intricacies of different contracts, try to figure out who to call if something should unfortunately go wrong, etc.

Working with a freight broker helps to streamline this process exponentially. You’re getting access to a team of shipping professionals who already have their own network of carriers and pre-existing relationships they can draw from. The freight broker helps make sure that the transportation of critical freight goes as smoothly as possible at all points in the process, making sure that it arrives at its destination safely, on time, and in full.

Advantages of Freight Brokering

The most immediate benefit of working with a freight brokering professional comes by way of streamlined communications. Rather than dealing with multiple carriers depending on the freight you’re talking about, your business gets a single point of contact during the journey. If you have a question, you have someone you can call to get the answer. If you have a problem, you know exactly where to go to get the solution.

Note that in this scenario, communication is very much a two-way street. A freight broker helps keep business leaders informed about the status of their freight at all points, making sure they have complete visibility no matter what.

Partnering with a freight broker also helps make the logistics of the shipping process easier, as again you’re talking about a professional who has their own pre-existing network of contacts to draw from. Rather than going through the hassle of negotiating terms and conditions with a carrier, planning the most ideal routes to cut costs, tracking freight, and more, businesses can allow a freight broker to handle all this on their behalf.

Not only does this allow them to rest easy knowing that their freight is being taken care of, but it also frees up their valuable time to focus on core business processes – which is truly the biggest advantage of all.

When to Find a Freight Broker

One of the most important things to keep in mind about all this is that not all businesses automatically need a freight broker. Each organization is unique, and some may be currently shipping everything they need without an issue. In that situation, working with a freight broker might not make sense – at least not yet.

But if you find yourself increasingly worried about shipping costs and are unsure of how to manage and reduce them on your own, a freight broker can definitely help. They’re experts at optimizing your supply chain management in a way that cuts costs without sacrificing important elements like quality of service or security in the process.

Another major sign that the time is right to find a freight broker has to do with issues resulting from scalability. Especially in the early days of a small business, it’s entirely possible that you are able to manage everything without a problem. But as your organization continues to grow, your freight needs can evolve rapidly – to the point where you may be having a hard time keeping up.

You’re dealing with more than just a “minor inconvenience” at that point – it may literally be the thing that prevents you from scaling in the way that you need. In that scenario, a freight broker can step in and make sure that your supply chain is taken care of so that you can grow without being artificially limited in any way.

Finally, one of the most obvious signs that the time is right to work with a freight broker has to do with a situation where your freight may be getting to its destination, but not on your desired schedule.
Again, freight that isn’t delivered on time is more than a “small problem.” Immediately, it can cause the type of reputational damage to your business that you might have a difficult time recovering from. In a larger sense, it means that you’re dealing with unexpected delays and inefficient routes – problems that are costing you money and that will only get worse if you let them.

Freight brokers have the insight and expertise needed to mitigate risk from all these factors and more. Yes, sometimes unexpected delays do happen, but a freight broker can minimize them as much as humanly possible. They can also call upon their time-honored safety procedures to help minimize damage to your freight, making sure that all items get into the hands of waiting clients and customers without issue.

How to Choose a Freight Broker

By far, the number one thing to look for in a freight broker has to do with not just experience, but experience with the specific kind of business you’re running. Not all industries are created equally, and the shipping needs of someone in the food and beverage field might vary wildly from a company in healthcare. You need a freight broker that understands the finer points of your field so that they can come up with the right strategy for your long-term goals.

You’ll also want to pay close attention to the carrier partnerships that a freight broker brings with them. Again, it isn’t just about whether you trust the freight broker – you also need to trust the carrier partners that they have deemed reliable and safe. If a chain is only as strong as its weakest link, a freight broker is only as strong as its weakest carrier. You’ll at least want to know what you’re dealing with before you make any type of decision to that end.

Beyond that, a freight broker should be licensed, bonded, and insured. They need to be registered with the Federal Motor Carrier Safety Administration, all so that you can rest easy knowing that even in the event of an issue, someone will be by your side every step of the way.
If you’d like to find out more information about what a freight broker is and how one might benefit your business, or if you have any additional questions that you’d like to discuss in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.