All examples for Freight Classification & Rate Estimation

First-Time LTL Shipper - Palletized Electronics

Complex palletized shipment with nuanced classification guidance. Addresses density vs commodity-based classification tension for electronics, provides cost scenarios for both Class 100 and Class 175, and includes comprehensive first-time shipper guidance.

Input

What you provide to the skill

We need to ship 2,400 lbs of electronics on 4 standard 48x40 pallets, each pallet 48 inches tall. Los Angeles to Dallas (1,400 miles). First-time LTL shipper.

Output

What the skill generates for you

Freight Classification Analysis: Electronics Shipment

Shipment Summary

  • Product: Electronics
  • Total Weight: 2,400 lbs
  • Total Pallets: 4 standard pallets (48” x 40”)
  • Pallet Height: 48 inches each
  • Route: Los Angeles, CA to Dallas, TX (~1,400 miles)
  • Shipper Status: First-time LTL shipper

Freight Density Calculation

Pallet-Level Calculation (Carrier Method)

  • Pallet dimensions: 48” x 40” x 48” per pallet
  • Cubic feet per pallet: 53.33 cubic feet
  • Total cubic feet (4 pallets): 213.33 cubic feet
  • Weight per pallet: 600 lbs
  • Density: 2,400 lbs / 213.33 cu ft = 11.25 lbs/cubic foot

Freight Class Determination

Density-Based Classification

Density Range | Freight Class | Your Shipment
---------------------|---------------|---------------
8-10 lbs/cu ft | Class 125 |
10-12 lbs/cu ft | Class 100 | <- HERE (11.25 lbs/cu ft)
12-15 lbs/cu ft | Class 92.5 |

Preliminary Freight Class (Density-Based): Class 100

IMPORTANT: Electronics Classification Nuance

Critical Finding: While your density calculation yields Class 100, electronics under NMFC 61575 are typically classified as Class 175 by common carriers, regardless of density. This is due to:

  • High commodity value (increased liability)
  • Fragility and handling requirements
  • Historical damage/claims ratio

Recommended Approach for First-Time Shipper

Quote as Class 175 to avoid reclassification disputes. Once you establish a carrier relationship, you can negotiate based on density.


Cost Estimation

Scenario A: Class 100 (Density-Based)

Carrier Type | Base Rate | Fuel (18-20%) | Total Est. | Transit
-----------------------|------------|---------------|-------------|--------
Budget Carriers | $960 | $173 (18%) | $1,133 | 7-10 days
Standard Carriers | $1,260 | $239 (19%) | $1,499 | 5-7 days
Premium Carriers | $1,560 | $312 (20%) | $1,872 | 4-6 days

Average: ~$1,500

Scenario B: Class 175 (NMFC Standard for Electronics)

Carrier Type | Base Rate | Fuel (18-20%) | Total Est. | Transit
-----------------------|------------|---------------|-------------|--------
Budget Carriers | $1,750 | $315 (18%) | $2,065 | 7-10 days
Standard Carriers | $2,100 | $399 (19%) | $2,499 | 5-7 days
Premium Carriers | $2,450 | $490 (20%) | $2,940 | 4-6 days

Average: ~$2,500

Price Difference: Class 175 costs ~$1,000 more per shipment than Class 100

LTL vs FTL Comparison

Your Shipment: 2,400 lbs (too small for FTL)

  • FTL Rate: 1,400 miles x $2.00/mile = $2,800
  • Verdict: LTL is optimal - FTL doesn’t make sense until 10,000+ lbs

Reclassification Risk Assessment

Overall Risk Level: MODERATE-HIGH (25-35% probability if quoting Class 100)

Risk Factors:

  • Electronics commodity - Carriers have tariff rights to classify as Class 175
  • First-time LTL shipper - No established carrier relationship
  • Conflicting classification - Density says Class 100, NMFC says Class 175

If Reclassified from Class 100 to Class 175:

  • Cost increase: +$1,000 (67% more)
  • Reclassification fee: $50-100
  • Total impact: +$1,050-1,100 per shipment

Recommendations

Classification Strategy

Option A: Conservative (RECOMMENDED for first shipment)

  • Quote as Class 175 from the start
  • Eliminates reclassification risk
  • Costs ~$1,000 more upfront but no surprises

Option B: Hybrid Approach

  • Request quotes for BOTH Class 100 AND Class 175
  • Ask carriers: “Will you accept Class 100 for palletized electronics?”
  • Choose based on carrier responses

Implementation Checklist

Quoting Phase:

  • Get formal quotes from 3-5 LTL carriers
  • Ask each carrier: “What NMFC code and freight class do you assign?”
  • Get written confirmation of freight class before booking

Documentation:

  • Prepare BOL with accurate weight (2,400 lbs) and dimensions
  • List specific product description, not just “electronics”
  • Take photos of all 4 pallets before pickup

Day of Pickup:

  • Driver counts pallets (confirm 4 pallets)
  • Driver signs BOL - keep copy for records
  • Note any discrepancies on BOL

Summary

Density-Based Class: Class 100 (11.25 lbs/cu ft)
Industry Standard Class: Class 175 (NMFC 61575 for electronics)
Expected Cost: $1,500-2,500 depending on classification
Recommendation: Quote as Class 175 for first shipment to avoid reclassification risk