Certified in Logistics, Transportation and Distribution (CLTD) Practice Test

Determining the freight class is crucial as it categorizes goods based on factors such as density, stowability, handling, and liability. This classification plays a significant role in the rate tariff process because it directly influences the pricing for shipping. Different freight classes correspond to different rates due to the varying costs associated with handling and shipping different types of cargo.

By establishing the freight class first, logistics professionals can ensure an accurate assessment of transportation costs and select the appropriate carrier and service level. This foundational step impacts subsequent decisions regarding shipment destination and delivery schedules, making it essential for calculating tariffs effectively. Recognizing the freight class is thus the logical starting point for assigning rate tariffs, as it lays the groundwork for the entire pricing strategy.