freight companies

The Basics of NMFC Codes

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In the world of shipping, National Motor Freight Classification (NMFC) codes are critical to the freight classification process. Nearly every type of product or commodity shipped in this country has its own NMFC code that helps carriers determine the cost of any given load. Therefore, it’s essential for freight companies to use the right one to ensure timely delivery and accurate price estimates.

The History of NFMC Codes

When regulators became aware of the need for better industry standardization, The National Motor Freight Traffic Association (NMFTA) developed a classification system. The system breaks every type of freight into 18 different classes, each denoted with a code number between 50 and 500. These codes allow carriers and shippers to determine tariffs and rates for shipments.

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trucking companies

How to Minimize the Impact of Rising Trucking Costs

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How do you lower the costs of freight transportation when trucking industry prices are rising dramatically? Trucking companies are facing skyrocketing prices and cost volatility in the current economy. A recent 2019 update to the “Analysis of the Operational Costs of Trucking” study released by the American Transportation Research Institute (ATRI) shows that almost every carrier cost has risen since 2018.

The average marginal cost per mile for carriers rose to $1.82, a 7.7 percent increase from 2018 to 2019. Fuel costs rose nearly 17.7 percent, marking the highest year-over-year-growth of all trucking costs. The second highest cost growth was the price of insurance, which increased 12 percent. Due to the driver shortage, which is expected to more than double over the next 10 years, wages increased approximately 7 percent while benefits increased around 5 percent. The costs of repair and maintenance also rose to 17.1 cents per mile. While the technology associated with diagnostics and repairs has advanced, there are less technicians versed in the newer equipment. The severe shortage of these technicians has resulted in higher labor costs in this field.

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