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FedEx improving LTL shipping efficiency, increasing sustainability with space and pace pilot

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Updated Jul 3, 2023

CCJ Innovators profiles carriers and fleets that have found innovative ways to overcome trucking’s challenges. If you know a carrier that has displayed innovation, contact CCJ Chief Editor Jason Cannon at jasoncannon@randallreilly.com or 800-633-5953.

Cutting costs while improving efficiency and sustainability. Those are the core goals of FedEx Freight’s less-than-truckload (LTL) Space and Pace pilot, which continues to deliver encouraging results since rolling out to select customers last November.

New technology at FedEx Freight (CCJ Top 250, No. 1) paved the way for dimension-based pricing for LTL which avoids the complex freight classifications under the National Motor Freight Classification (NMFC) system. Published by the National Motor Freight Traffic Association (NMFTA), NMFC is used voluntarily by shippers and carriers to help negotiate shipping costs by comparing commodities transported through interstate, intrastate and foreign commerce.

The NMFTA, which publishes NMFC standards, reports on its website that “commodities are grouped into one of 18 classes — from a low of class 50 to a high of class 500 — based on an evaluation of four transportation characteristics: density, handling, stowability and liability. Together, these characteristics establish a commodity’s ‘transportability.’”

[Related: ArcBest improves freight visibility, cuts time at the dock]

FedEx Freight's space and pace pilot provides a shipping calculation option that doesn't require complex freight classifications used with the National Motor Freight Classification (NMFC) system. “Quotes are simple and fast through automated tools,” said Heather Rorie, managing director of freight analysis, costing and revenue quality science and analytics at FedEx Freight. “We understand that customers want a pricing option that makes it more intuitive to ship with FedEx Freight. Removing the classification component can also reduce differences between a rate quote and an invoice which can result in more efficient billing.”FedEx Freight's space and pace pilot provides a shipping calculation option that doesn't require complex freight classifications used with the National Motor Freight Classification (NMFC) system. “Quotes are simple and fast through automated tools,” said Heather Rorie, managing director of freight analysis, costing and revenue quality science and analytics at FedEx Freight. “We understand that customers want a pricing option that makes it more intuitive to ship with FedEx Freight. Removing the classification component can also reduce differences between a rate quote and an invoice which can result in more efficient billing.”FedEx FreightHeather Rorie, managing director of freight analysis, costing and revenue quality science and analytics at FedEx Freight, said understanding NMFC classifications can be challenging. Each item being shipped requires an NMFC code to help ensure accurate pricing. Accuracy depends on keeping up with NMFC codes and updates.