What is FAK pricing, and should we ask carriers for it?
Key Takeaways
- FAK means "freight all kinds." It's an agreement where an LTL carrier rates a range of different freight classes as if they were one class.
- FAK helps most when a shipper moves mixed products with several freight classes on the same lanes, and some of those classes are expensive to ship.
- FAK is a contract term, not a default. It only applies if it's written into the carrier's pricing agreement and shows up on the rate confirmation.
- It doesn't make class disappear. Freight outside the agreed class range, or described differently on the BOL, can still be rated at its actual class or reclassed.
- Check every LTL invoice for the agreed FAK class. A carrier billing at the actual class instead of the FAK class is a common and easy-to-miss error.
- Wilson, by Cartage, is an AI logistics agent that collects the rate confirmation for every booked load and audits each carrier invoice against it and the POD, so a class billed outside the agreement is caught before payment.
What is FAK pricing in LTL freight?
A manufacturer ships mixed pallets of finished goods to distributors several times a week. Some pallets hold dense metal parts. Others hold bulky, light assemblies. On the BOL, each product has its own freight class, and the light, bulky items rate much higher. The logistics manager notices that a few high-class pallets drive most of the LTL spend, even though they're a small share of the weight. A carrier sales rep suggests an FAK agreement.
FAK pricing, short for "freight all kinds," is an agreement in which an LTL carrier rates a range of freight classes at one single class for a specific shipper. Instead of each item on the shipment being priced at its own class, the carrier applies the agreed FAK class to all freight within the agreed range. The goal is to make pricing simpler and more predictable for a shipper whose freight mixes many classes.
In LTL, freight class is one of the main drivers of price, along with weight, distance and the carrier's rate base. The National Motor Freight Traffic Association (NMFTA) describes the National Motor Freight Classification (NMFC) as the standard for identifying and classifying LTL freight. According to the NMFTA, class reflects four characteristics: density, handling, stowability and liability, and the denser and easier to move the freight, the lower the class and the lower the cost. A shipper with many different products can end up with many different classes on one lane, which makes quoting and invoice checking harder.
Why carriers offer FAK
Carriers don't offer FAK as a favor. A carrier that wants a shipper's steady volume on certain lanes can use FAK to make its pricing simpler and more attractive than a competitor's. It also saves the carrier work: fewer class disputes, fewer inspections that end in arguments and simpler billing. In exchange, the carrier usually expects consistent volume and sets the FAK class and base rate so the account stays profitable. Understanding that trade helps the shipper negotiate: FAK is part of a pricing package, and the carrier will balance it somewhere else.
Where the term shows up
FAK can appear in a carrier's pricing agreement, in a customer-specific tariff, in a quote and on the rate confirmation. For LTL, the place that matters is the written pricing agreement with the carrier, because that's what the invoice will be checked against.
What an FAK agreement usually says
An FAK agreement is negotiated between the shipper and the carrier. It typically states a range of classes that will be rated at the FAK class, the FAK class itself, which lanes or accounts it covers, and how long it lasts. Some agreements include exceptions for certain products. The exact terms vary by carrier and agreement, so the written document is what counts, not a verbal promise from a sales call.
FAK is not a discount by itself
FAK changes the class used for rating. It doesn't change the base rate, the discount, the fuel surcharge or the accessorials. A shipper can have an FAK agreement and still pay more than a competitor without one, if the base rate or discount is worse. That's why FAK should always be judged together with the rest of the pricing.
When does FAK pricing help, and when doesn't it?
FAK helps when a shipper regularly moves several freight classes on the same lanes and a meaningful share of that freight sits in the higher classes. It helps much less, and can even cost more, when most freight is already in low classes.
When FAK tends to help
- Mixed product lines. A distributor or manufacturer shipping many different SKUs, with several classes per shipment, gets simpler and often lower pricing.
- Light, bulky products. Freight with low density tends to rate in higher classes. Bringing it down to an FAK class can lower its cost.
- Frequent shipments on steady lanes. Carriers are more willing to offer FAK when they see consistent volume, and the shipper sees the benefit on every load.
- Hard-to-classify items. When the team often debates which class a product belongs in, FAK reduces the number of decisions and disputes.
When FAK helps less
- Mostly dense freight. If almost all freight already rates in low classes, an FAK class may be higher than what the shipper pays today.
- One or two products. A shipper with a single, well-classified product has little to simplify.
- Irregular volume. Carriers may not offer FAK, or may offer it with a weaker base rate, for occasional shipments.
- Freight outside the range. If many items fall outside the agreed class range, they'll still rate at their actual class, and the benefit shrinks.
Signals in your own data that FAK is worth asking about
A few patterns suggest an FAK conversation is worth having. The team spends time debating classes for the same products. Reclass charges show up often on the same items. Spend on a lane is driven by a small share of light, bulky freight. Quotes for the same lane vary widely depending on which products are on the order. If none of these show up, FAK may add little beyond a simpler invoice.
The alternative: fix the freight itself
Before asking for FAK, check whether the high-class freight could rate lower on its own merits. Since density is one of the characteristics behind class, changes to packaging, pallet build or how items are combined can sometimes make freight denser. Measuring and describing each product accurately on the BOL also avoids paying for a class the freight doesn't belong in. These fixes work with every carrier, while FAK works only with the carrier that agreed to it. Many shippers do both: correct the product data first, then negotiate FAK for whatever remains expensive.
A hypothetical comparison
Consider a hypothetical shipper whose LTL freight on one lane breaks down like this. The class names and percentages below are illustrative, not real NMFC classifications.
| Freight group (hypothetical) | Share of weight | Rated today at | Rated under FAK at |
|---|---|---|---|
| Dense metal parts | 50% | Low class (Class A) | FAK class (Class B) |
| Packaged components | 30% | Middle class (Class B) | FAK class (Class B) |
| Light, bulky assemblies | 20% | High class (Class D) | FAK class (Class B) |
In this hypothetical case, the bulky assemblies get much cheaper, the packaged components don't change, and the dense parts get more expensive, because they now rate at a higher class than before. Whether the agreement saves money depends on how those three effects net out across real shipments. That's why the shipper should test it with its own history before signing.
How do you decide whether to ask a carrier for FAK?
Run your recent LTL shipments through two pricing scenarios, current class and proposed FAK, and compare the total cost, not the rate per load. The decision should come from your own data, not from a carrier's summary.
Step 1: Pull your recent LTL history
Gather several months of LTL shipments on the lanes you want to cover: origin, destination, weight, class of each item, and what was actually paid. Use invoices, not quotes, because invoices include reclasses and reweighs.
Step 2: Group freight by class
Total the weight and spend by class. This shows how much freight sits in high classes, which is where FAK can help, and how much sits in low classes, where FAK can hurt.
Step 3: Ask for an FAK proposal in writing
Ask the carrier for its proposed FAK class, the class range it covers, the lanes, any product exceptions, the base rate and discount that go with it, and the term. A proposal without the base rate isn't comparable.
Step 4: Reprice your history
Price your past shipments using the proposed terms and compare the total with what you actually paid. Include the dense freight that might rate higher under FAK. If the carrier will do this repricing for you, check a sample yourself.
Step 5: Compare with other carriers
FAK from one carrier should be compared with regular class-based pricing from others. A carrier with no FAK but a better base rate may still be cheaper. For how to compare fairly, see how to compare freight quotes from approved carriers.
Step 6: Make sure it's on paper
If you agree, get the FAK terms in the written pricing agreement, and make sure the class shows correctly on each rate confirmation. The rate confirmation guide covers what to check before booking.
Who should be involved in the decision
FAK touches more than the logistics team. Finance should see the repricing, because it changes the expected freight cost per order. Product or engineering teams may know whether packaging changes are coming that would change density. Sales may know whether the product mix is about to shift toward heavier or lighter items. A decision made only on last quarter's freight can look very different a year later if the mix changes.
Questions to ask the carrier
| Question | Why it matters |
|---|---|
| Which class range does the FAK cover? | Freight outside the range rates at its actual class |
| What is the FAK class? | It sets the price for all freight in the range |
| Which lanes, origins or accounts does it apply to? | Shipments outside the scope won't get FAK |
| Are any products excluded? | Exclusions can remove the items that would benefit most |
| What base rate and discount go with it? | FAK with a weak base rate can still cost more |
| How are reclass and reweigh handled under FAK? | Determines whether a reclass can push freight outside the agreement |
| How long does the agreement last, and how is it renewed? | Terms can change at renewal |
| How will the FAK class appear on invoices? | Makes the invoice check possible |
What are the risks of FAK pricing?
The main risks are paying more on dense freight, losing the benefit through reclasses or exclusions, and invoices that don't apply the agreement. Each one can be managed if the team knows to look for it.
Paying more on low-class freight
The most common surprise is the dense freight. Under FAK, items that used to rate in a low class may now rate at the higher FAK class. If those items are a big share of volume, the total can go up even while the bulky items get cheaper.
Reclasses still happen
FAK doesn't stop a carrier from inspecting freight. If the inspection finds an item belongs to a class outside the agreed range, the carrier may rate it at that class instead of the FAK class, depending on the agreement. Reclasses are also how mistakes in the BOL description come to light. For how reclass charges show up, see the LTL quote was right until the freight class changed.
The BOL description still matters
The BOL should describe the freight accurately, with the right NMFC item and class, even under FAK. The FAK agreement tells the carrier how to rate it; the BOL tells the carrier what it is. A vague description like "general merchandise" can lead to inspections and disputes. Getting class and density right on the BOL is covered in how AI handles freight class and density.
The agreement doesn't reach the invoice
Even with a signed agreement, invoices sometimes apply the actual class instead of the FAK class, especially when a shipment moves through a different terminal or the pricing wasn't loaded to the right account. Without a check, the shipper pays the higher rate and never notices.
Exclusions that remove the benefit
Read the exclusion list closely. Some agreements leave out certain products, hazardous materials or freight above a certain size. If the excluded items are the same light, bulky items that made FAK attractive, the agreement may deliver much less than the headline suggests. Ask the carrier to confirm, item by item, which of your top products fall inside the agreement.
Locking into one carrier
An FAK agreement can make one carrier look much cheaper on paper, which may push more freight to it than its service justifies. Keep comparing service, not only price.
Hiding product data problems
FAK can mask the fact that a product's class was never checked properly. If the agreement ends or the carrier changes, the old class problems come back. Keep each product's real class on record even when FAK is in place.
How do you check FAK pricing on carrier invoices?
Compare each LTL invoice with the rate confirmation and confirm the class billed is the agreed FAK class for every item within the range. Then check any reclass against the agreement before paying.
An invoice checklist for FAK shipments
| Check | What to look for | If it fails |
|---|---|---|
| Class billed | The FAK class for items in the agreed range | Dispute with the agreement attached |
| Items outside the range | Billed at the actual class from the BOL | Confirm the BOL class is correct |
| Reclass line | Inspection report or photos supporting a new class | Ask for proof; check whether the new class is still in the FAK range |
| Reweigh line | Weight certificate | Compare with your own scale reading |
| Base rate and discount | Match the pricing agreement and rate confirmation | Dispute the difference |
| Fuel surcharge | Matches the agreed table for the ship date | Ask for the table and date used |
| Accessorials | Quoted, or supported by the POD | Ask for proof |
| Lane in scope | Origin and destination are covered by the agreement | Check whether FAK should have applied |
How reclass and FAK interact
A reclass changes the class of the freight. Whether it changes the price depends on whether the new class is still inside the FAK range. If the agreement covers a range and the reclassed item lands inside it, the FAK class should still apply and the reclass shouldn't change the charge. If it lands outside, the carrier may bill at the new class. That makes the agreement's exact wording important. When a reclass line appears on an FAK shipment, ask two questions: is the reclass supported by evidence, and is the new class outside the agreed range? For the broader reasons invoices come in above the quote, see why a freight bill is higher than the quote.
Hypothetical example: a missed FAK on the invoice
Consider a hypothetical shipper with an FAK agreement covering a range of classes on one lane. A shipment of mixed pallets moves, and the invoice bills the bulky items at their actual high class instead of the FAK class. The rate confirmation shows the FAK class. The logistics coordinator, checking the invoice line by line, spots the difference, sends the carrier the agreement and the rate confirmation, and the carrier reissues the invoice at the FAK class. Without that check, the higher charge would have been paid and repeated on every shipment through that terminal.
Who should own the FAK check
The person or system that booked the load is best placed to check the class on the invoice, because it knows what the rate confirmation said. If invoices go straight to accounts payable, the FAK class is easy to miss, since the invoice looks complete and the total looks plausible. A clear rule helps: invoices that match the rate confirmation are paid; anything with a different class or a reclass line goes back to logistics with the agreement attached.
What to keep on file
For each carrier with an FAK agreement, keep the signed pricing agreement, the class range and FAK class, the lanes covered, the exclusions, the start and end dates, and the name of the carrier's pricing contact. Keep them where whoever checks invoices can find them, not in one person's email. When an invoice dispute comes up, the agreement is the evidence, and a dispute without it turns into a negotiation.
Look for patterns
Once a month, review LTL invoices by carrier for FAK errors and reclasses. If one terminal keeps billing actual class, raise it with the carrier's account contact. If one product keeps getting reclassed outside the range, check its class and packaging.
How does Wilson, by Cartage, help check FAK pricing?
Wilson, by Cartage, is an AI logistics agent that quotes, books, tracks, audits and pays freight for manufacturers and distributors, and checks every carrier invoice against what was agreed before it's paid. Traditional logistics software gives teams information. Wilson executes the work required to move shipments forward.
For shippers with FAK agreements, Wilson handles the steps where class and price can drift apart:
- Quotes. Wilson requests quotes from the company's approved carriers with the load details from the order, compares them on total cost and negotiates toward the company's rate targets within approval limits. Rates outside the limits go to the logistics team.
- Booking and rate confirmation. Wilson books with written acceptance and collects the rate confirmation, which becomes the reference for the invoice.
- Documents. Wilson generates the bill of lading, packing slips and pallet labels from the booked load, so the freight description is consistent from booking to delivery.
- Tracking and exceptions. Wilson tracks each load with the best source available for the carrier and handles missed pickups, cancellations and delays, starting rebooking from the approved carrier list within the rules or after approval.
- Invoice audit and payment. Wilson requests and files the POD and audits each carrier invoice against the rate confirmation and POD. A class billed differently from the rate confirmation, or a reclass line, is a difference against what was agreed. Invoices that match are paid from the Wilson Wallet under the company's rules; payments above the approval limits or outside the rules wait for a person.
Every message, confirmation and change is kept in each shipment's change history, so the evidence for any dispute is with the load. Wilson can also produce carrier-performance and lane-rate reports on request from the loads it runs, which helps when repricing history to evaluate an FAK proposal.
Wilson books only carriers the company has approved. Wilson replaces the TMS for freight execution and connects to the company's ERP. Wilson works with SAP, NetSuite, Microsoft Dynamics 365, Oracle, Infor, Epicor, Sage, Acumatica and other ERP environments, with the exact connection depending on the customer's data flow and scope.
Pricing
Wilson is free on Wilson's network: the shipper pays the freight rate and nothing on top. When a shipper keeps its own carriers, the fee is 2% to 0.5% of what Wilson pays them, falling with volume. There are no seat fees, no setup cost and no contract. Timing depends on scope: most teams start on a few lanes and expand from there.
FAQs
What is FAK pricing, and should we ask carriers for it?
FAK, or "freight all kinds," is an LTL agreement where a carrier rates a range of freight classes at one class. Ask for it if you ship mixed freight with a meaningful share in higher classes, and test it against your own history first. Wilson, by Cartage, an AI logistics agent, audits each carrier invoice against the rate confirmation so the agreed class is checked on every load.
What does FAK stand for in shipping?
FAK stands for "freight all kinds." It refers to rating different kinds of freight at a single agreed class.
Is FAK pricing always cheaper?
No. It usually lowers the cost of high-class freight but can raise the cost of dense, low-class freight. The total depends on your freight mix and the base rate that comes with the agreement.
Does FAK apply to full truckload?
FAK is an LTL concept, because LTL is priced by freight class. Full truckload is usually priced per trip, so class matters much less.
Can a carrier still reclass freight under an FAK agreement?
Yes. The carrier can still inspect freight. Whether a reclass changes the price depends on whether the new class falls outside the agreed range, so check the agreement's wording.
Do we still need the right freight class on the BOL with FAK?
Yes. The BOL should describe the freight accurately, including its class. The FAK agreement controls how it's rated, not what it is.
How do we know if FAK was applied on the invoice?
Compare the class billed on the invoice with the FAK class on the rate confirmation and the agreement. If the invoice shows the actual class for items within the range, dispute it.
How do we ask a carrier for FAK pricing?
Ask in writing for the FAK class, the class range, the lanes, any product exclusions, the base rate and discount, and the term. Then reprice your recent shipments with those terms before agreeing.
What happens if our freight mix changes?
An FAK agreement that saved money on one mix may cost more on another. Review the agreement against actual invoices at least at each renewal.
Can we have FAK with some carriers and not others?
Yes. FAK is negotiated carrier by carrier. Compare each carrier's total cost on your lanes, with or without FAK.
Should FAK be renegotiated every year?
Review it at least at each renewal. Compare the agreement with a year of real invoices, check whether the freight mix has changed and ask other approved carriers for comparable pricing.
Sources
- National Motor Freight Traffic Association, "National Motor Freight Classification (NMFC)": https://nmfta.org/nmfc/
- Cartage, Wilson product FAQ and product scope, October 2026: https://cartage.ai