You may qualify for a lower classification rating
Ray Bohman -- Logistics Management, 4/1/2003
Over the years, the National Motor Freight Classification (NMFC) has assigned one or more classification ratings, or classes, to thousands of articles. These classes affect the base freight rates that are applied to your products.
NMFC ratings are not carved in stone, however. In fact, there may be opportunities to secure lower classification ratings than what you currently are paying.
The first step is to analyze your classification by looking at the NMFC's description for your product and the class or classes that have been assigned to that product.
If it's subject to only one class, check the National Classification Committee (NCC) Density Guidelines (found at www.nmfta.org) to see if the class assigned to your product falls within the density range shown for that class. If your density (weight per cubic foot) is significantly heavier than the guidelines, you may be eligible for a lower class rating.
If your density falls outside the guidelines, try to find out why. Perhaps you ship your product more compactly than does your competition. (Shipping "knocked down" can reduce the cube by at least 33 percent compared to shipping the same article when it is set up). Or maybe you save space by shipping it folded, disassembled, stacked, skidded, nested, and so forth.
Other factors the NCC considers when assigning classification ratings are stowability, ease or difficulty of handling, and liability (as measured by value per pound). If these factors fall within normal ranges, though, they are given little weight compared to density.
If you think you may qualify for a lower rating, you might consider filing an application with the National Classification Committee seeking an amendment to the current item. There are many different ways to draft an amended item to distinguish your product from others covered under the present description. You could, for example, request the establishment of sub-classifications, such as one for set-up articles at the current class, and one for knocked-down articles at a lower class that is based on the NCC Density Guidelines.
Another way to separate your product from the pack might be to ask for two sub-classifications based on two different density groups, with two different classes. Obviously, you'd need to know about the density averages of articles in each of the two density groups so you could justify the ratings you are seeking. And you wouldn't want to propose a class for the lighter density group that is higher than the class currently published for that description, otherwise you'd draw opposition from shippers that would be adversely affected.
In addition, make sure you are on solid ground before proceeding, so your proposal doesn't end up backfiring. That's what happened to the manufacturer of Frisbees years ago. Instead of a reduction, that company ended up with a 25-percent increase in its rating.
Once you file your application for change, it will be placed on the next available quarterly National Classification Committee docket. An NCC panel will consider and vote on it at an open meeting. If you are dissatisfied with the panel's decision, you may appeal to the full NCC Committee. It is not mandatory that you personally appear at any of those meetings. You may instead have someone represent you, or you may simply rely on the application you submitted or a written statement.
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