Freight Bumping. LTL’S Dirty Little Secret
Today we are going to expose a little-known practice known as freight bumping. It is perfectly legal as long as some basic steps are taken. Freight bumping can be extremely beneficial for shippers of density based items but there are a few things to consider before bumping yourself into savings.
What is a density-based item and how do I know if my article is density based?
Density-based items are typically items with a low pound per cubic footprint. Plastic articles such as toys, clothing, and fiberglass are considered density based goods.
Why do carriers add something called “deficit weight” to an LTL rate quote?
The practice of artificially “bumping” the weight of a shipment to the next pricing tier is fairly common. Depending on your shipment this may be beneficial to you. A freight carrier does this automatically. However, the practice of “freight class bumping” is a practice that is not done as a courtesy by the freight carrier. Only the best LTL freight shippers and most knowledgeable shippers understand how to effectively apply this little-known secret.
Applying this rule does come with some caveats such as:
- You are only allowed to bump up one freight class lower and you are not allowed to bump yourself into an FAK ( freight all kinds ) class exemption.
- You must declare the actual freight class, real weight and real density class group on the bill of lading. You must also demonstrate the declared density and weight for billing purposes so the carrier knows that the freight bump rule was applied. These declarations must be on the BL (bill of lading) at the time the shipment is tendered to the freight carrier.
There can be substantial benefits in applying this rule if done correctly. If not done correctly class bumping could actually have the reverse effect and end up costing you more. It would be wise for small to medium-sized shippers to consult with their freight shipping service provider before attempting to apply the freight class bump on their own.
Contact Freight-Specialist today to help you with your next shipment.