Every type of freight has a different set of shipping needs, determined by variables such as its material, packaging, density, and what kind of product it is. Therefore, it is crucial to understand the freight class of the items you transport.
What Does FAK Mean?
Freight All Kinds, abbreviated as FAK, is an arrangement between shippers and sellers determining what class cargo will get shipped within. Even if you are shipping cargo of multiple different classes, you will still need to choose a single standardized shipping class within which it will get shipped.
This process allows for fair pricing for the shipper and the seller because cargo with different product types can still get sent in the same standardized class.
FAK vs. Class Exception
The main difference between FAK and a class exception is that a class exception includes a specific selection of freight classes, whereas FAKs include all freight classes. FAKs are rarer since they have specified requirements and come at a discounted price.
Class Exception
A class exception is an agreement that assigns freight into a lower class category.
For instance, if you are shipping freight in classes between 50-150, it would be classified as a class 77.5.
Any shipment above a 150 class will qualify as actual class freight. A class exception is typically more common than a FAK because, unlike FAKs, a class exception does not require you to have a specific volume of cargo.
When Can a Carrier Assign a FAK Classification?
A carrier may assign a FAK classification if:
- Multiple NMFC Commodities Are Being Shipped
- Similar Product Stowability
- Density and Weight of Individual Commodities Are Not Drastically Different
- Appropriate Liability Cargo Coverage
- Less Than Truckload (LTL) Freight Charge Minimums Suitable for FAK Rating
When classifying cargo, it is up to the freight carrier to determine if a FAK freight categorization can get assigned. Several factors determine if freight qualifies for FAK, such as volume, packaging, and product details.
Ultimately, if your cargo can get transported as if it were lower class, it is more likely to qualify for a FAK classification.
Multiple NMFC Commodities Are Being Shipped
If you are shipping freight commodities in different class qualifications, as determined by the National Motor Freight Classification (NMFC), you may be assigned a FAK classification.
Similar Product Stowability
If you are transporting freight that can get easily stowed, the lower its eventual class. Simultaneously, this will make your cargo more likely to get classified as FAK.
Density and Weight of Individual Commodities Are Not Drastically Different
The more a shipment weighs, the less you will pay for every hundred pounds. The density of your shipment is calculated by dividing weight by cubic feet, which contributes to determining a load’s classification.
Appropriate Liability Cargo Coverage
If you have liability cargo coverage, you will be more likely to get assigned a FAK classification. This is because shippers prefer cargo coverage when shipping cargo that is classified into a lower class than it is.
Less Than Truckload (LTL) Freight Charge Minimums Suitable for FAK Rating
When shipping consolidated LTL freight, the freight charge minimums are appropriate for a FAK classification.
Benefits of FAK Ratings
FAK ratings are a cost-effective, streamlined option when shipping large volumes of freight. Not only can they make the shipping process more accessible by consolidating, but FAKs can also cut back on shipping rates, operations ratios, and tariff freight rates.
Streamline Your Shipping and Invoicing Process
A FAK classification simplifies the shipping process by having a single classification instead of multiple so that re-classification can be avoided.
How FAKs streamline the shipping process:
- Items can be billed under the same class
- Items can be shipped under the same class
- Many different items can be shipped at one time
- A reduction in the amount of necessary documentation and billing
- Items of multiple classes can be shipped in one skid
- Re-classification can be avoided, resulting in a faster transportation process overall
Reduce Costs
Since cargo classes get averaged, FAK ratings provide a beneficial price for both the shipper and the carrier. FAK rates reduce tariff freight rates, less than truckload (LTL) freight shipping, and allow for the shipment of high-value products for a discounted cost.
FAKs can lower the cost for shippers:
- If you are shipping freight in a low class: When shipping freight in a low class, carriers will be more open when negotiating for lower prices. This is because operations ratios are preferable when shipping freight of a low class.
- If you are shipping mixed-freight pallets: If you are shipping mixed-freight pallets, consolidating items of a higher class will allow you to save on the cost instead of paying for freight of multiple different classes.
- If you are shipping dense commodities: If your freight is dense, you will most likely be able to pay lower shipping rates.
Other Areas Where FAKs Are Used
FAK ratings can be beneficial if you are shipping freight of a lower class when shipping high-density cargo and if you are shipping mixed-freight pallets. They are also used by shippers and carriers who can benefit from consolidating items.
Freight Consolidation
FAKs are used for consolidated cargo. Therefore, any party utilizing and benefiting from consolidation may get assigned a FAK classification.
FAKs may be used by:
- Freight forwarders
- Container Freight Stations (CFSs)
- Consolidators
- Logistics Service Providers
- Large Shippers
What To Do Next
Your business may benefit from a FAK rating if you are consolidating shipments of large volumes with items of multiple classes. The next step in a FAK is to find a qualified and reliable freight transportation provider that can streamline and simplify the entirety of the transportation process for you.
RPM is in a network of more than 30,000 carriers, and we will get your freight from point A to point B with the help of our highly-skilled and experienced team.
Are you interested in learning more about Freight of All Kinds (FAK)? Check out our website to learn more about how RPM can help fulfill your shipping needs.
Sources:
Freight Class Explained: FAK FAQs | Partner Ship
FAK vs Class Exemption | England Logistics
What Does FAK Mean? (Freight Terms Explained) | Brimich Logistics & Packaging Inc.
