3PL, FAK, and the Alphabet Soup of Freight Movements

The freight industry, your supply chain, and the world of logistics can be challenging to navigate. Hopkins Distribution Company is the leading 3PL company in northern Nevada. Anyone new to freight movements will notice that the industry uses a large amount of abbreviations and acronyms. We at Hopkins Distribution are here to take the guess work out of your logistics so you can focus on doing what you do best.

Negotiating the best pricing and service with freight carriers is made easier when you know the relevant lingo. Here is a quick rundown of jargon that some freight professionals take for granted.

Term: 3PL
Spelled out: Third Party Logistics
Definition: A supplier of outsourced logistics services that primarily uses its own assets and resources to provide product transportation and order fulfillment for other businesses.
Value: Using a 3PL company such as Hopkins Distribution will allow you to use an existing and fine-tuned infrastructure. We at Hopkins Distribution can leverage large volumes between all our clients to get you the very best freight rates.

Hopkins Distribution Company building

Term: FAK
Spelled out: Freight All Kinds
Definition: A freight carrier’s tariff classification for various kinds of goods that are pooled and shipped together at one freight rate. Consolidated shipments are generally classified as FAK.
Value: A shipment may contain various freight with classes 50, 100, and 125. Each one of these classes can have a different cost. A FAK 50-200 would revert all classes in the subject shipment down to freight class 50 – the least expensive of the three classes in the shipment. Hopkins Distribution manages and navigates FAK for you ensuring that you’re always taking full advantage of the best freight classes and pricing.

Term: NMFC
Spelled out: National Motor Freight Classification
Definition: A publication for motor carriers containing rules, descriptions and ratings on all commodities moving in commerce.
Value: The system allows for a uniform pricing structure for similar types of commodities. For example, instead of different identifications for cereal, granola bars, and protein bars, the National Motor Freight Traffic Association (NMFTA) can determine that all those products are similar enough to receive the same NMFC# and thus the same freight rate. Hopkins Distribution manages and navigates this for you ensuring that you’re always taking full advantage of the best freight classifications and rates.

These are just a few of the terms and subjects that Hopkins Distribution Company can help you understand and use to your advantage. Our Hopkins Distribution Glossary is your number one resource for freight terminology. Anyone can move and store freight, but only Hopkins Distribution Company can provide you with the best west coast 3PL services. Contact us today!