Ways To Determine Your Freight Class

The National Motor Freight Classification (NMFC) has made some significant changes to the less than truckload (LTL) classification system, one being the introduction of an 11 tier density breakdown. The density category now has a class 65 for heavier shipments. Packaged commodities, also known as shipments, are grouped into 18 possible classes from class 50 to 500.

Determine Your Freight Class

Policies and guidelines regarding packaging requirements are regulated by the Commodity Classification Standards Board (CCSB). Furthermore, it is the Classification Resource Committee (CRC) that submits proposals to NMFC policies in suggesting changes to cargo information. The NMFC distinguishes between these four transportation measurements:

Density

The density is measured in pounds per cubic foot. To calculate density, you should measure the dimensions of your shipment in inches including the overhangs. Remember to divide the volume by 1728 inches per cubic foot. Find the weight of the shipment using a calibrated scale. Use this formula: Density = Mass/Volume

Handling

Handling determines how difficult it is to load or unload the cargo. Shipping instructions are affected by factors like fragile warnings, forklift restrictions, hazardous materials, or the two-person handling label. Hand loaded cargo is classed higher than mechanically lifted ones due to the time-consuming labor.

Stow-ability

Stow-ability factors in shipments that have uncommon dimensions as they are difficult to load onto the trains. The cargo must be stacked into the trailer with no extra space to spare or else it counts as lost revenue. The three categories are, stackable/load bearing, oddly shaped, or stowing restricted.

Liability

Liability explains what to do in case you receive freights that are damaged, lost or stolen. Fragile and perishable items come with their own requirements in transit. Carriers are concerned with expensive items, damaged goods, or spoiled food items since they are susceptible to liability charges.

The NMFC is used to set the initial prices of LTL transports. Commodities belonging to one of 18 different classes are assigned a specific class number, as stated before, to decide if they are low-class or high-class shipments. This process determines the freight’s rate and carrier liability costs. It also accounts for up to 8,000 commodity descriptions, as the industry standard for carriers.

There are four ways to find out the proper class for your commodity:

  • Buy an NMFC Book from the NMFTA store which costs up to $310.00
  • Buy an account for the NMFC ClassIT system priced at $328.00
  • Buy an interpretation guide from the NMFTA, priced around $30-$450 per block of 25
  • Talk to another LTL carrier for advice related to these types of purchases

The NMFC is responsible for comparing freight shipping in interstate, intrastate, and foreign commerce industries. The NMFC helps simplify negotiations between carriers and shippers to evaluate the movement of goods across America. Lastly, they cover the Bills of Lading for filing government claims. Their standards are particularly detailed, to ensure bulk packages are handled in a safe manner.

Justin Bright – CEO Brighter Logistics

An Insight About Non-Asset Based Logistics

Non-asset based logistics providers can be defined as a third-party logistics (3PL) provider that does not own the assets required to implement and manage the chain of supply. These assets are the trucks or vehicles needed for freight movement, distribution centers and warehouses, and other facility or equipment that will play a huge part in the transport of the cargo. Because they lack these essential assets, non-asset based 3PLs are using their resources and networks to negotiate with major players in the industry.

An Insight About Non-Asset

They would have to make deals and sign contracts with main carriers to manipulate the supply chain. Non-asset based 3PL also have a unique program for carrier relationship management, which would provide the lowest cost for managing the supply chain. Cost efficient freight transport is important in businesses, because it would allow the company to move their products at the cheapest price possible.

Non-asset based 3PL knows that each client has a different demand for the services, which is why they are concentrating on providing different approach and styles that would fit the client’s demands. They also give priority to clients who are after the short time frame of transport, and they are working with several transportation companies for faster air travel, sea travel and land travel, making sure that the target deadline will be met.

Another advantage of non-asset based 3PL is that they do not need to do inventories, because they do not own any asset. They remain profitable this way, and they offer flexibility in the movement of the supply chain. Asset based 3PLs are the opposite, resulting in a higher cost of payment and the monopoly of the service. Many business owners are drawn towards the service provided by non-asset based 3PL, mainly because they give their clients the freedom to choose how they wanted their service to be customized.

The schedule, the route, and the time frame depend on how the client wanted it to be, and they can change it for the benefit of their companies. Once the plan has been finalized by the client, it is up to the non-asset 3PL to execute the plan given to them. It is very efficient and cost effective, and it can save businessmen lots of money for transporting their freight from one point to another. It also gives the client a piece of mind when using the services from non-asset 3PL because after providing them with the plan, all they must do is to wait for the service to conclude, and they can focus on doing a different task. Non-asset based 3PL will do the rest, making sure that they will finish the task given to them on the deadline that was agreed upon.

The technology that a non-asset based 3PL uses helps greatly in logistics. They can track down the transport of the cargo in real time, and they can provide information to their client about the condition of the supply chain instantly. Many businesses are now using the services provided by non-asset based 3PL because they know that each transaction made with them is successful and will cost them less.

Justin Bright – CEO Brighter Logistics

Freight Agents -Top 8 Factors To Consider Before Finding Your Home

Freight agent job is a career that can deny you activities that regular people enjoy, such as spending time with your loved ones, having drinks with your friends, and more. You work for more than 60 hours per week doing whatever you can to retain your customers. The big question is, are you satisfied with being an employee of a reputable organization, or you’re tired and want out? If you feel like it’s time to move on, read on to learn more about what to consider before finding your new home.

Freight Agents

 

Culture

Have you ever walked into a building or an office and felt something that you can’t explain? The way you feel every time you enter your office is exactly how your customers will feel. In light of this, you need to invest heavily in culture.

Monetary status

As the CEO of your company, it’s your responsibility to know how your business is doing financially. Of course, you’ll have experts for that, but you need to make a follow-up and confirm what’s entered on the books of accounts reflects the company’s fiscal position.

Risk-Prone/Risk Averse

Some companies are willing to risk everything, and others are cautious about what they are willing to risk. Risk Averse businesses are more concerned about the people that they do business with, but risk-prone organizations are used to taking risks and doing business with almost everyone regardless of their credit history. You should find a way to balance these two factors.

Reputation

Reputation is everything. If your customers are satisfied with your services, they will help you market your business. If a brokerage firm does shady business, you can be certain that people will hear about it. Search for prospect organizations on credit reporting websites with key load posting services. See how they are ranked and what you can do to rank high. Also, make sure that they are members of Transportation Intermediaries Association (TIA) and find out if they are red flagged by TIA.

Carrier compliance policies

It’s in your best interest to ensure that the prospect business has strict carrier compliances policies. They should also have the most recent technology equipment to monitor the carrier. An average sized broker carrier’s list can accommodate more than 50,000 active carriers. It’s clear that there’s a lot to be done regarding the management of this database, but it’s vital for it to be up to date and 100 percent correct all the times.

Bad debt liability

Who will assume responsibilities and how will you be affected if anything goes wrong. For example, if a broker gives out credit and the customer goes missing, who will be responsible for this liability- the broker or the agent?

Operating system

A good operating system will help you to solve many problems and provide you with the necessary tools to make informed decisions, improve your workflow, and enhance efficiency in the workplace. Choose a system that guarantees you the safety and confidentiality of your customer’s details from other agents.

Additional services

If you to stay ahead of your competitors, you must find ways to offer your customers something more than just the usual services. You need to be creative and come up with new ways to satisfy the ever-growing needs of your customers. Today’s customers know what they want, and it’s your job to exceed their expectations.

Justin Bright – CEO Brighter Logistics