You’ve likely heard of the National Motor Freight Traffic Association (NMFTA), and maybe you’re even a member yourself. But what exactly is the NMFTA, and what does it do anyway?
Below, we’ll cover the ins and outs of the NMFTA so you have a better understanding of the role it plays in the motor carrier industry.
The National Motor Freight Traffic Association (NMFTA) is a nonprofit organization that publishes the National Motor Freight Classification (NMFC). A system that classifies domestic and international cargo based on the commodities’ “transportability.” Because cargo pieces have different transportation characteristics and requirements, carriers and shippers reference this classification to determine shipping prices and negotiations when different kinds of cargo share the same space.
The National Motor Freight Classification (NMFC)
The NMFC divides commodities into 18 freight classes based on their density, stowability, handling, and liability. Density refers to the amount of space the cargo takes up. While stowability describes how easy or difficult the cargo is to store. Meanwhile, ease of handling determines whether special care is needed when loading and unloading the cargo. And liability decides how likely the cargo is to be damaged or stolen. The coding system begins with Class 50—the lowest-costing cargo—and goes up to Class 500—the highest-costing cargo.
Any transportation company that references the NMFC in their contracts or rate schedules must be a member of the NMFTA, which requires an annual payment and licensing agreement. Upon completing the requirements, members receive a NMFTA certificate.
Other NMFTA Standards
In addition to publishing the NMFC, the NMFTA is also responsible for developing the Standard Carrier Alpha Code (SCAC). Which assigns a unique two-to-four-letter code to transportation companies operating in North America. These codes are used to identify the companies in shipping documents and computer systems. The NMFTA publishes the Directory of Standard Carrier Alpha Codes, listing all the participants—most shippers require carriers to have their own code before doing business with them.
Furthermore, the NMFTA also created the Standard Point Location Code (SPLC). Which is a geographic code given to shipping terminals in North America. Similar to the codes given to airports, SPLCs represent each originating and destination point for freight shipments, making it easy to identify specific locations.
And finally, the NMFTA was recently granted administration of the Digital LTL Council. This council focuses on setting standards for the digitization of LTL shipments, helping the motor carrier industry stay current with ever-changing technology.
To learn more about LTL shipping and requirements, contact Falvey Insurance Group today.
