The NMFC code is an important element in logistics, particularly for businesses shipping Less-Than-Truckload (LTL) freight. This standardized identification system directly influences the cost and efficiency of transporting goods. Accurately determining this code is fundamental for managing expenses and ensuring smooth operations, as it helps carriers and shippers align on the physical characteristics of the freight.
What Exactly Is an NMFC Code?
The NMFC code (National Motor Freight Classification) is a standardized numeric identifier assigned to every type of commodity moved in commerce. Maintained by the National Motor Freight Traffic Association (NMFTA), the code typically consists of four to six digits and serves as a universally recognized designation for a specific product. This system provides a common language for carriers and shippers.
The NMFTA develops and governs this classification system, which categorizes thousands of products into distinct groups. Using the correct code is a fundamental compliance requirement for anyone involved in Less-Than-Truckload (LTL) shipping.
The Purpose of the National Motor Freight Classification
The goal of the National Motor Freight Classification system is to establish a unified and standardized basis for freight pricing. It prevents arbitrary rate setting by linking transportation costs to the objective characteristics of the item being moved, ensuring a fair and consistent pricing structure across LTL carriers. The classification process groups commodities based on their transportability—how easily and efficiently they can be shipped.
This standardization is achieved by evaluating four specific characteristics of the freight to determine its classification. The resulting classification influences the tariff, or base rate, a carrier applies to the shipment.
Understanding the Relationship Between NMFC Codes and Freight Class
A common point of confusion is the difference between the NMFC code and the freight class. The NMFC code functions as the specific identifier for the commodity itself. For example, specific types of plastic bottles will have their own distinct NMFC code.
The freight class, in contrast, is the resulting numerical category that determines the pricing bracket. This class is a number ranging from 50 to 500, with 18 distinct levels, which carriers use to calculate the actual shipping rate. While the NMFC code identifies the item, the freight class defines its cost bracket based on the difficulty of shipping that item.
The Four Characteristics That Determine Classification
The NMFTA uses four specific characteristics to assess a commodity’s transportability and assign its freight class. These factors collectively determine the resources, space, and risk a carrier must account for when moving the item.
Density
Density is the most significant factor in determining freight classification and is calculated as the weight of the item per cubic foot. High-density items, such as steel parts, are heavy relative to their size and are assigned a lower, cheaper freight class. Conversely, low-density items, like ping-pong balls, take up significant trailer space without adding much weight, resulting in a higher, more expensive freight class.
Carriers prefer high-density cargo because it maximizes the weight capacity of a trailer while minimizing unused volume.
Handling
Handling refers to the attention and care required to load, unload, and move the freight. Items that are fragile, require special equipment, or have unusual dimensions that make them difficult to stack are assigned a higher classification. Standard, palletized boxes moved with a simple forklift represent the lowest handling risk. Freight requiring manual labor or that is susceptible to damage will increase the classification.
Liability
Liability assesses the risk associated with transporting the commodity, including the potential for theft, perishability, or damage. High-value goods, such as electronics, or materials that are flammable or corrosive, pose a greater risk of loss or damage. This factor also considers the potential for the item to damage other cargo in the trailer. Products with higher liability concerns are placed into higher freight classes to account for increased insurance and risk management costs.
Stowability
Stowability describes how easily the freight can be loaded with other types of cargo within the trailer. Cargo that is unusually shaped, excessively long, or prohibited from being shipped near certain materials restricts the carrier’s ability to efficiently fill the available space. Hazardous materials or items with sharp edges may be classified higher because they cannot be stacked with or placed next to general freight. The lowest classifications are given to items that can be uniformly stacked and positioned easily alongside various other commodities.
How to Determine the Correct NMFC Code for Your Shipment
Determining the correct NMFC code begins with accurately measuring and weighing the shipment to calculate its density. Shippers must know the exact dimensions and weight of their fully packaged cargo. The official classification information is contained within the National Motor Freight Classification (NMFC) tariff, also known as the NMFC 100 series.
This is a proprietary publication requiring a subscription for access to the official, continuously updated list of codes and classifications. Shippers often consult their third-party logistics provider (3PL) or the carrier directly to identify the appropriate code. The process requires cross-referencing the product’s composition, packaging, and density calculation against the descriptions in the official classification resource.
Consequences of Using the Wrong NMFC Code
Using an incorrect NMFC code, often called misclassification, leads to significant financial and logistical complications. The most common consequence is a carrier audit, where the freight is re-weighed and re-dimensioned at the terminal. If the carrier determines the shipment warrants a higher freight class than declared, they will reclassify it.
This reclassification results in an unexpected and substantial increase in the shipping cost, billed back to the shipper as a balance due bill. Carriers may also apply administrative fees and penalties. Consistent misclassification can strain relationships with carriers, potentially leading to less favorable rates or the refusal of future shipments.