Welcome Message

Hello everyone and welcome to our workshop on “Get Educated on Accurately Determining Freight Class”.

We are Pamela Mattes and David Barnes of Freightquote.com. We are excited to host today’s workshop and share with you many of the freight industry’s details on classifying products.

Shipping through freight carriers can seem complex and overwhelming at times. Throughout this workshop, we will deep dive into how you need to know how your product is defined by the industry, how it should be packaged and recommendations to secure for freight shipping. We’ll also discuss you how you can save time when selling and shipping large items weighing over 150 lbs.

We’re going to post the workshop messages every couple of minutes. To help you keep track of the workshop, we’ll mark our workshop posts with the phrase “Workshop Message #” at the top. So feel free to jump into the discussion at any time.

Workshop Message #3

Who is the National Motor Freight Traffic Association(NMFTA)?

NMFTA is a nonprofit membership organization comprised of more than 1,100 motor carriers and regulated by the U.S. Department of Transportation's Surface Transportation Board and various state and federal agencies.

An autonomous National Classification Committee (NCC) develops and maintains the NMFC. They meet 4 times a year to discuss issues pertinent to membership, and changes to NMFC. Meetings are held publicly. Any person may propose a change and appear at any meeting.

It is required by Federal Law to participate in NMFTA. Any carrier who uses, or references NMFC in its contracts, classes, rules or descriptions within their Tariff Rules or practices must be a member.

The use or reference by a non participating carrier is a violation of Federal Law and invalidates those rates, charges or packaging requirements.

Workshop Message #5

What do different freight classes mean?
Now let’s talk about how value and density factor into determining a products classification

Take ping pong balls for instance. Ping Pong balls are a class 500 because of their density. Filling a truck full of boxes of ping pong balls would not weigh very much. Rates are based on weight and density. Rates are higher for transporting ping pong balls vs bowling balls.

Density is determined by calculating the product’s shipping dimensions and weight. The lower the density, the higher the freight class. Freight Density ranges from 50 to Less-than 1

Calculate in Inches:

1. L x W x H = Cubic Inch
   
2. Divide by 1728 = Cubic Foot
   
3. Divide Weight by Cubic Foot = Freight Density - ranges from 50 to Less than 1

Example Calculation:

1. L=125" x W=40" x H= 60" equals to 300,000 Cubic Inch
   
2. Divide 300,000 by 1728 = 173.61 Cubic Foot
   
3. Divide the cargo-example: 1,500 Lbs by 173.61 Cubic Foot = 8.64 Freight Density in Pounds per Cubic Foot
   
4. Using the calculated density, in this example between 8.00 and 8.99 to get an estimated Freight Class 110
   

Note: The freight tools on eBay will calculate this for you, however, you do need to know your correct shipping dimensions.

Workshop Message #7

The general rule of thumb is the higher the class, the higher the rate for every hundred pounds you ship.

Rates are structured so that as the weight of your shipment increases, the rate per hundred pounds decreases. To determine total cost rates are based on several factors:

1. The distance the shipment is moving
   
2. The shipment's weight
   
3. The density of the commodity being shipped
   
4. The commodity's susceptibility to damage
   
5. The value of the commodity
   
6. The commodity's loadability and handling characteristics
   

The last four elements go into establishing the classification of a commodity.

For example:
Shipment 1– Product ‘A’ shipping to New York, NY weighing 100 lbs may cost $41.00 per hundred lbs.

Shipment 2- Product ‘B’ shipping to New York, NY weighing 500 lbs may only cost $35.00 per hundred lbs.

But doing the math, we see that the total charges for the 500 pound shipment are higher (5 x $35 is greater than 1 x $41).

Workshop Message #9

Now we’ll discuss preparing our products for shipping. Before You Send Your Goods...
No matter which carrier you select to transport your goods, taking a few important steps before a driver arrives for pickup can keep business running smoothly:

1. Prepare your packaging
Secure packaging helps ensure trouble-free shipping. All goods should be protected with proper packaging in compliance with the NMFC. When loading pallets, make sure to secure the package and protect appropriately. You also do not want to allow the product to over hang the pallet edges.

2. Label every piece clearly and completely
Complete names and addresses on each piece are needed to ensure that packages in your shipment arrive intact. Label placement is important too. Make sure labels are visible from all sides.

3. Complete a bill of lading
The bill of lading is a legal contract between you, the shipper, and the carrier. It should state exactly what is being shipped, where it's coming from and where it's going to, etc.

4. Select a carrier
Selection criteria are often based on the goods you are shipping, the services your carrier can provide, where your shipment is going, the date by which the shipment should arrive, and the cost of these services. You must evaluate the options based on your company's needs.

5. Place a pickup order
Most carriers will take your telephone call requesting a pickup and have a truck at your location that same day or possibly the next. The carrier will probably ask where the shipment is going, how much it weighs, if it is ready to be picked up, how late the shipment can be picked up, and who is paying the charges.

Hint: Setting up shipments early in the morning to increase your chances of a same day pickup. Online services through the eBay Freight Resource Center provide you easy automated setup that will contact the carrier and provide the Bill of lading.

Workshop Message #11

Once you’ve completed listing the item, the Freight Calculator will be displayed in the “Shipping, payment details and return policy” section of the auction.




Potential buyers can then enter their destination ZIP code and the destination location details (i.e. residence, commercial location with or without a loading dock) to calculate the shipping cost.




Here is an example of what a Buyer would see after using the freight calculator.



Important Note: Quotes given at this point do not include insurance. Insurance quotes can only be given once the auction is complete since insurance rates are determined by the product type and value. The final product value can only be determined after the auction has ended.

Workshop Message #13

Checkout Process – As The Seller

As the seller, once you are ready to invoice the buyer, go to either My eBay or the auction item to send an invoice. Select “Send Invoice” This will take you to this screen.

You will want to click on the calculator symbol to retrieve the quote.

A freight shipping quote will be displayed with the option to purchase additional insurance, if available. Once the quote is returned, then click on the “Add to Total” button.

You will be returned to the Payment Details section to choose insurance options, sales tax percent and discounts. You will then need to click “recalculate” link to include shipping costs in the total purchase cost. You can then type a message to the buyer and send your invoice by clicking on the “Send Invoice” button.