SHIPPERS BEWARE: Freight Class for “Clothing” Takes a Big Spike

by George Muha on 2010-12-02 23:57:32

Today my friend who represents an association of apparel retailers called me up with some concern of a recent change in National Motor Freight Classification guide for “clothing”.  Her worry for her member stores has real consequences so I felt compelled to write about her story and show how the NMFC’s ongoing amendments can send freight costs through the roof!

My pal’s example of the NMFC’s change in “clothing” is a great example of how this type of adjustment could impact any commodity whose freight class gets altered.  In this case, these retailers are primarily used to getting billed at a class 100 for clothing.  But now, with the NMFC changing to clothing to a “density item”, their freight bills could go as high as a class 400 depending on the pounds per cubic foot.

More realistically these freight invoices that these shippers are used to paying at class 100 could now be billed at class 125 and 150.  According to the docket, the majority of clothing gets shipped between class 125 and 150 (see page 5 of THIS document).  So many apparel companies that are used to shipping items less than 12lbs per cubic foot at a class 100 could now see a potential spike in freight rates between 25% and 50% (the difference between a class 100 and 125 and 100 and 150 respectively).  

More and more items in the NMFC are getting moved to this “density” classification.  Freight carriers would love to get away from the NMFC and the freight class system altogether and move to more of a “per cube” type of billing, similar to the way parcel companies’ invoice.  However, there are too many political hoops to go through to just do away with the NMFC right now.  So adjusting items to a “density item” system like this is almost as good in the freight carriers’ eyes.

So this example brings to light the fact that every industry should really keep tabs on what the NMFC is up to.  Whenever the NMFC is about to change, you can see what is going on by checking out their site:  

HERE IS THE EXAMPLE OF HOW CLOTHING WAS ADJUSTED IN THE NMFC:

The way the old class description in the NMFC read was like this:   

Clothing, item number 49880
Sub 1 hanging on hangers or racks Class 175
Sub 3 other than hanging Density less than 12 pounds per cubic foot or actual value exceeding $12.50 per pound Class 100
Sub 4 Density 12 lbs or greater per cubic foot or actual value not exceeding $12.50 per lbs Class 77.5

The new way clothing is described reads like this:

Clothing, item number 49880
Sub 1 Less than 1 .............................................................................................. 400
Sub 2 1 but less than 2 ....................................................................................... 300
Sub 3 2 but less than 4 ....................................................................................... 250
Sub 4 4 but less than 6 ....................................................................................... 150
Sub 5 6 but less than 8 ....................................................................................... 125
Sub 6 8 but less than 10 ..................................................................................... 100
Sub 7 10 but less than 12..................................................................................... 92.5
Sub 8 12 but less than 15..................................................................................... 85
Sub 9 15 or greater ............................................................................................. 70

NOTES:  The National Motor Freight Traffic Association, Inc. who governs the NMFC hosts a very informative website that shows all of the classes that are up for review or that have recently changed at http://www.nmfta.org.  If you would like to get a refresher on how to calculate density, just click HERE.

George Muha is a published author in the area of supply chain and logistics.  He also hosts the website www.freightsavingstips.com where he writes savings ideas and best practices companies can do on their own to keep freight costs low.

By George Muha