Bohman on Pricing: What weight density is given in establishing classification ratings?
By Ray Bohman -- Logistics Management, 5/1/2008
As you well know, all commodities described in the National Motor Freight Classification (NMFC)—more than 10,000 in number—are assigned one or more of the 18 different classification ratings (or classes). Those ratings range from a low of Class 50 for things like used motors to as high as Class 500 for cargo like ping pong balls.
You may wonder what classification factors are considered in assigning one or more of those 18 ratings. For many years the then existing Interstate commerce Commission (ICC) allowed over 20 different classification factors to be considered and weighed.
Just prior to its being sunsetted, the ICC limited the number of factors to be considered to just four. They are:
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Density: The weight per cubic foot.
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Liability: The susceptibility to theft; liability to damage; propensity to damage other freight when transported; perishability; propensity to spontaneous combustion or explosion; and value per pound.
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Stowability: How well is it stowed in a carrier’s equipment?
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Handling: Does it present substantial handling problems?
All four factors are considered and weighed, but if the second through fourth classification factors are within normal ranges, they are given little weight. That being the case, in most instances, density (weight per cubic foot) becomes the controlling factor.
In pegging a classification rating for a particular commodity, the Commodity Classification Standards Board (CCSB) doesn’t just throw a dart at a dart board. In cases where the range in densities is fairly narrow, the CCSB generally assigns a classification rating based on the CCSB density guidelines. If the range in densities is fairly wide, the CCSB generally assigns a multiple scale of classification ratings based on density.
If you are thinking of seeking a lower classification rating on a product that is currently applicable, make sure you are in line with the current CCSB Density Guidelines. If your actual density is five pounds per cubic foot, but takes a rating of Class 100, forget about seeking a lower class. Your effort could well backfire with you being hit with an increase to Class 150.
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