FAK is a term used within the freight and logistics industry when an LTL carrier assigns a single tariff classification for freight that would typically run under several NMFC codes.
The National Motor Freight Traffic Association (NMFTA) created the National Motor Freight Classification (NMFC) tariff to classify all commodities into 18 different freight classes between 50 and 500, but quite often it is difficult to manage multiple classifications for shippers, making FAK a great option for both the shipper and the LTL freight provider.
For the right shipper, FAK’s are a great method for shippers to reduce their LTL rates and to simplify the entire LTL process from start to finish.
For an FAK to be assigned, there are some characteristics of the freight that need to align, hence the listing below:
With the above in mind, the LTL carrier will determine which of the 18 FAK commodity codes will make the most sense for the shipper’s freight.
While most of the discussion in this article has been around a shipper’s freight FAK assignment, freight consolidation is also where one would find FAK freight being used. So, freight forwarders, container freight stations (CFS’s), consolidators, logistics service providers and larger shippers that create their own consolidated loads also operate under FAK tariffs.
In these situations, the use of a transportation management system that can quickly and easily build the consolidations are key.
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