Why Your LTL Freight Class Might Be Costing You More Than You Think

Let’s say you’re a small business shipping pallets of furniture across the country. You book a shipment, everything looks good—until the invoice shows up and it’s way more than expected. Sound familiar?

Chances are, freight class is the culprit. And if you don’t understand how it works, you could be overpaying on every shipment.

In the world of LTL (Less Than Truckload) shipping, freight class isn’t just a technical label—it’s a major factor in determining your final cost. Whether you’re a seasoned logistics manager or a business owner handling your own shipping, understanding freight class can save you time, money, and headaches.

So, let’s break it down.

What Is Freight Class, Exactly?

Freight class is a standardized system developed by the National Motor Freight Traffic Association (NMFTA) to categorize goods based on density, stowability, handling, and liability. There are 18 different freight classes, ranging from Class 50 (least expensive) to Class 500 (most expensive).

Here’s the breakdown of what freight class considers:

• Density: How heavy your shipment is relative to its size.
• Stowability: How easy it is to load and stack with other freight.
• Handling: How fragile or bulky the item is.
• Liability: How likely it is to be stolen, damaged, or cause damage.

Each of these factors affects the cost to transport your goods. Lower freight classes generally mean your shipment is dense and easy to handle—so it’s cheaper to ship. Higher classes often involve fragile or oddly-shaped goods that are riskier to transport.

According to the NMFTA’s guidelines, these classifications help carriers price shipments fairly and efficiently. Learn more at NMFTA.org.

Why Freight Class Directly Impacts Your LTL Shipping Rates

Here’s where it gets real: the freight class you use directly impacts your LTL rate. That’s because LTL carriers use freight class to determine how much space your shipment will take up and how difficult it is to transport.

Imagine two pallets of the same size—one filled with bricks, the other with ping pong balls. They’re very different in terms of weight, fragility, and risk, right? That’s where freight class helps create fairness in pricing.

Let’s break down how the class can affect rates:

Higher class = higher rate. Simple as that.

The Role of Density in Determining Freight Class

If there’s one thing you really want to get right, it’s your freight density.

To calculate it:

Density = Weight (lbs) ÷ Volume (cubic feet)
Volume = (Length × Width × Height in inches) ÷ 1,728

Let’s say your pallet weighs 500 lbs and takes up 20 cubic feet.
500 ÷ 20 = 25 lbs per cubic foot → That puts you in Class 70 (which is pretty decent).

According to Freightos, most shippers can save 15–25% just by packaging more efficiently to increase density and lower class.

Common Mistakes That Can Inflate Your LTL Costs

Mistakes in classification aren’t just costly—they can trigger freight reclassification fees, slow down delivery, or even result in refused shipments.

Here are a few pitfalls to watch out for:

• Guessing your freight class instead of using a calculator or NMFC code
• Underestimating dimensions (carriers re-measure, and they will catch errors)
• Ignoring packaging guidelines, which affects stowability and handling
• Failing to update class for different products in a mixed pallet

Pro tip: Use an NMFC lookup tool to get the correct freight class and avoid surprises.

How to Lower Your LTL Rates by Optimizing Freight Class

Yes, freight class can work for you—not just against you.

Here’s how to get strategic:

✅ Consolidate Shipments

Combining multiple smaller shipments into one pallet can increase density and lower your class.

✅ Use Efficient Packaging

Avoid dead space. Use stackable boxes, shrink wrap, and consistent dimensions.

✅ Know Your NMFC Codes

Each type of product has a corresponding National Motor Freight Classification (NMFC) code. Knowing yours helps avoid misclassification.

✅ Negotiate With Carriers

Some carriers offer freight class exceptions or discounted tariffs for regular shippers.

✅ Partner With a 3PL or Freight Broker

They often have pre-negotiated rates and can help optimize your shipping strategy.

Real-World Example: Saving $2,000+ a Year

One e-commerce business selling industrial shelving was initially shipping at Class 150 due to poor packaging. After switching to custom-fit boxes and combining shipments, they moved down to Class 70.

The result? An average savings of $60 per shipment, totaling $2,400 in annual savings—just from re-evaluating their freight class.

Final Thoughts: Don’t Let Freight Class Be an Afterthought

Understanding how freight class affects your LTL rates isn’t just for logistics geeks—it’s essential for anyone who wants to ship smarter.

By knowing your freight class, calculating density accurately, and optimizing your packaging, you can lower costs, reduce surprises, and build a more efficient supply chain.

Want to get the best LTL rate possible? Start by getting your freight class right.

Frequently Asked Questions (FAQ)

❓What is the cheapest freight class?

Class 50 is typically the cheapest because it applies to heavy, dense items like bricks and steel that are easy to handle and stow.

❓What happens if I choose the wrong freight class?

The carrier will reclassify your shipment, charge additional fees, and may delay your delivery. It’s crucial to get it right from the start.

❓How do I find my NMFC code?

You can use the official NMFTA ClassIT system or consult with your 3PL provider for help identifying the correct NMFC code.

❓Does freight class apply to full truckload (FTL) shipments?

Nope! Freight class only applies to LTL shipments. FTL shipments are usually priced based on mileage and space, not class.

❓Can freight brokers help lower my LTL rates?

Yes! Freight brokers often have volume discounts and can help you optimize everything from freight class to carrier selection.