Reclassification Charges

What are Reclassification Charges?

Less-than-truckload (LTL) reclassification charges refer to additional fees that may be assessed when a shipment's National Motor Freight Classification (NMFC) or freight class code is not properly applied. These charges can significantly increase the cost of shipping goods, and it is important for shippers to understand how to avoid them.

What are NMFC Codes?

NMFC codes are assigned by the National Motor Freight Traffic Association (NMFTA) to provide a standardized system for classifying and pricing shipments. These codes are based on several factors, including the commodity being shipped, its density, value, and liability. The freight class code, on the other hand, is determined by the National Carrier Bureau (NCB) and is used to determine the shipping rate for a given shipment.

Why is the Correct NMFC Code Important?

When a shipper applies the wrong NMFC or freight class code to a shipment, the carrier may reclassify the shipment and charge additional fees. These fees can be substantial and can significantly increase the overall cost of shipping goods.

How do I avoid Reclassification Charges?

To avoid these reclassification charges, shippers should ensure that they have the correct NMFC and freight class codes applied to their shipments. This can be done by consulting the NMFTA's NMFC code directory, which provides a comprehensive list of codes and their corresponding descriptions. Shippers can also contact the NMFTA directly for assistance in determining the correct codes for their shipments.

In addition to consulting the NMFC code directory, shippers can also work with a third-party logistics provider (3PL) like Translogistics (TLI) that can help them determine the correct codes and ensure that they are applied properly within the Transportation Management System (TMS) automatically. 3PLs often have expertise in classification and can provide valuable guidance and support to shippers.