What is a Reclass in Freight Shipping?
Understanding Reclassification (Reclass) in Freight Shipping
In the transportation industry, reclassification, often referred to as "reclass," involves changing the National Motor Freight Classification (NMFC) code assigned to a shipment. The NMFC code is a standardized system used to classify goods for freight shipping, which helps determine the shipping cost based on factors like density, stowability, handling, and liability.
Why Reclassification Happens
Reclassification typically occurs when the initial classification of the freight is deemed inaccurate. This shipment reclass can happen for several reasons:
- Incorrect Information: The shipper may have provided incorrect or incomplete information on the BOL about the shipment's characteristics.
- Misidentification: The freight might have been misidentified or miscategorized based on its dimensions, weight, or nature.
- Changes in Shipment Details: The actual shipment details, such as the dimensions, may differ from the initial description, requiring a reassessment of its NMFC code.
Process and Implications of Reclassification in Freight Shipping
During transit, freight carriers inspect shipments to verify their classifications. If discrepancies are found, they may reclassify the shipment. Once a reclassification occurs, the shipper is notified, and the new NMFC code is applied. Based on the new classification, the freight charges are adjusted, which typically results in an increase in shipping costs.
Reclassification can have significant implications for shippers. One major impact is cost adjustments; a reclass may lead to higher shipping costs if the new classification results in a higher freight class. Conversely, it might reduce costs if the shipment is reclassified to a lower class. Ensuring accurate and compliant freight descriptions helps avoid reclassification, reducing unexpected costs and delays. If shippers believe the original classification was correct, they have the right to dispute reclassifications by providing supporting documentation and evidence to the carrier.
To avoid reclassification, shippers should provide precise and complete information about their shipments, including dimensions, weight, and the nature of the goods. Proper packaging is essential to ensure the freight matches its description and classification. Additionally, working with freight experts or consultants can help determine the correct NMFC code for shipments, ensuring smoother and more cost-effective transportation.
I need Reclassification support!
If you need reclassification support, TLI is your best partner. We actively dispute reclasses with carriers to mitigate freight bills. Have a shipment for us to route? Let us know! Need NMFC guidance or support? We’ve got you covered.
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