Surface Transportation set rates , but it helps determine pricing . Classes are referenced in carrier tariffs and shipper contracts .

The NMFC sorts products into 18 different classes and sub-classes ranging from 50 to 500 . Lower freight classes tend to be tied to lower rates . The determining factors are density , handling , stowability and liability characteristics .

After 89 years of expansion and revision , “ it ’ s too complicated ,” Joe Ohr , COO at NMFTA , said at the conference . “ The NMFC needs to be simpler and easier to understand whether you ’ re a shipper , logistics provider or carrier .”

The proposed changes will standardize the density scale for LTL freight . They will also create unique identifiers for freight with special handling , stowability or liability needs , and condense and modernize commodity listings .

“ You ’ re going to see us start bringing down the number of terms we use and making it simpler [ to use the NMFC ],” Peterson told SMC3 . Two new density classes will be added — 50 and 55 .

“ We will move items with no handling , stowability or liability issues to full density ,” he said . More generic items will be combined in one listing , simplifying searches .

One result should be less reclassification and repricing of freight as it moves from shippers through LTL networks . With most LTL carriers using dimensioning equipment to check the size and weight of shipments and their classification , shippers find that freight charges are revised frequently , most often adding to their costs .

‘ An ongoing process ’

Speakers at the SMC3 conference said shippers need to start acting now to prepare for the classification changes .

“ We ’ ve opened our doors to our carriers and said come to our docks , look at our freight ,” said Nick Waters , director of logistics at Masco , a home products manufacturer . LTL carriers often don ’ t know enough about the freight they ’ re handling , he said .

“ We ’ re sharing information on freight moving through our lanes with our carriers ,” Waters said . “ This isn ’ t brand new , but the carrier pricing models have become more complex , and they know what they ’ re handling .”

Waters said Masco hasn ’ t seen big increases in LTL pricing , “ but with the NMFC changes coming , it ’ s a thing we ’ ll have to keep an eye on .”

Those changes won ’ t stop once the current proposals are either modified or approved .

“ This is an ongoing process ,” Peterson said . “ There ’ s going to be more to do here .”

email : bill . cassidy @ spglobal . com

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