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Are You Overpaying on LTL Freight by Relying on NMFC Classification?
Meta Description: Many companies overpay on LTL freight by using NMFC classifications alone. Learn how density-based pricing can reduce costs by up to 50% and maximize your savings.
So many companies assume they have to use NMFC to classify their freight. After all, most LTL carriers price shipments this way, and it’s the industry standard. But relying solely on NMFC can leave significant money on the table.
The reality is that many companies are overpaying for LTL freight by not considering density-based classification. Some carriers will even offer discounts based on density instead of the traditional NMFC class.
NMFC vs. Density-Based Classification
The National Motor Freight Classification (NMFC) assigns a freight class based on density, stowability, handling, and liability. While it provides a standardized starting point, it doesn’t always reflect the true cost of shipping your freight.
Density-based classification, on the other hand, evaluates the actual weight and cubic space your freight occupies. This can reveal misclassified shipments, which may be costing your company thousands in unnecessary freight spend.
A Real-World Example
I recently visited a company that was using NMFC for freight classification. Their shipments were classified as Class 200. According to a standard density-based conversion chart, Class 200 corresponds to a density of 1–4 lb/ft³.
In reality, their freight regularly had a density of 11 lb/ft³, which would qualify as Class 100 under density-based pricing. Depending on the shipment weight, this misclassification could result in a 30–50% cost reduction if billed according to actual density.
Why This Matters
- NMFC is a baseline, not a ceiling: It’s a starting point, but carriers may offer discounts based on actual density.
- Small changes add up: Misclassification can lead to tens of thousands of dollars in excess shipping costs annually.
- Smart optimization works: Companies that analyze freight density and carrier lane preferences often secure better rates and guaranteed savings.
How to Start Saving on LTL Freight
- Review NMFC classifications and compare them to actual freight density.
- Work with carriers open to density-based pricing instead of relying solely on NMFC.
- Use technology like a Transportation Management System (TMS) to identify misclassified freight and maximize savings automatically.
Bottom Line: Don’t assume NMFC is the only way to classify your LTL freight. By evaluating actual density, companies are uncovering significant cost savings — sometimes up to 50%.
If you want to see where your freight might be overpaying, Rock Solid Logistics offers a no-cost Freight Cost Leakage Snapshot to identify opportunities — no contract required.