Freight Classes
So what do all these different freight classes mean?
As we mentioned, several elements, including value and density, determine the classification of a commodity.
Take ping pong balls, for instance. Ping pong balls are class 500 (the most expensive class) because of their density...or perhaps we should we say the lack thereof!
A carrier can fill an entire trailer full of ping pong balls without having much weight loaded. Since rates are based on weight and density, the rate for transporting ping pong balls is higher than it would be for something like heavy machine parts.
But even with very low-density freight, there are ways to reduce your rate charges.
Let's look at another example from the NMFC to see how you can lower your freight charges by accepting some of the risk (or limiting the value of your goods in the event of loss or damage).
Perfumes in barrels or boxes may be classified under NMFC item 59070, class 85. But NMFC note 60000 states that as the shipper, you may declare a "released value" in writing on the bill of lading. In this case, the released value of the property cannot exceed $2.15 per pound. If you put this released value on the bill of lading at the time of shipment, your barrel of perfume's class will be reduced to class 70.
This means that you -- the shipper -- get a lower rate. In turn, your carrier has limited its liability to $2.15 per pound should something happen to the shipment.
The lesson? Stating the released value of your goods on the bill of lading and accepting the associated protection tradeoffs can adjust your classification and get you lower rates.
TIP 1 Hint: you can view all seven tips here.
Avoid billing corrections. Contact your carrier representative to discuss the NMFC and your product's classification.
