Freight pricing negotiations often come down to two options: a FAK agreement that simplifies classification, or density-based rates that price freight closer to its actual cost to move. Understanding when each approach works in your favor, and what data you need to support either, makes a real difference in what you pay.

Accurate dimensions sit underneath both strategies. Without reliable dimensional data, a FAK agreement might not be saving as much as it appears, and a density-based negotiation is hard to defend.

What FAK agreements are

FAK stands for Freight All Kinds. It is a pricing arrangement where a carrier and shipper agree to simplify how certain freight is classified or rated, often by applying a blended or negotiated class structure across a defined freight profile. While FAK agreements can simplify billing and reduce classification complexity, the actual shipment cost may still vary based on lane, weight, minimum charges, accessorials, fuel, carrier rules, and contract terms.

For shippers with diverse product lines where managing class variations is operationally complex, FAK arrangements reduce administrative overhead.

The tradeoff is that a FAK rate is negotiated based on an assumed freight profile. If the actual freight is lighter or less dense than assumed, the shipper may be paying more than they would under a class-based rate. If it is denser or heavier, they may be getting a better deal.

How density-based classification works now

Following the NMFC classification updates in 2025, density has become a more important factor for many LTL freight classifications. That does not mean density is the only consideration in every shipment. Freight classification can still account for other transportation characteristics such as handling, stowability, and liability. But for shippers, the shift makes accurate dimensional and weight data even more important because density-based calculations depend directly on the quality of those measurements.

 FreightWaves reported that the overhaul shifted many items to density-based classification, with the intent of aligning rates more closely with the actual cost of moving freight through the network. Under this model, the rate depends on weight divided by volume. If dimensions are wrong, density is wrong, and the class changes. And if the class changes after the fact, the invoice changes. The pallet dimensioner for LTL shippers page covers how outbound measurement supports density-based billing accuracy.

When FAK tends to work better

FAK agreements generally favor shippers whose freight spans a wide range of classes. FAK can also be simpler to administer. Instead of managing a wide range of freight classes shipment by shipment, the shipper works within the structure of the negotiated agreement. That can reduce classification complexity and documentation burden, though shipments may still be subject to carrier inspections, dimensional discrepancies, accessorial charges, or other exceptions depending on the agreement.

FAK is also simpler to administer: no per-shipment class calculation, no per-shipment reclass risk, and less documentation overhead per BOL. The catch is that FAK agreements require negotiating from a position of knowledge. A carrier offering a FAK rate will price it to protect their margin. Without knowing the density distribution of the freight mix, the shipper is negotiating blind.

When density-based pricing tends to work better

Density-based pricing tends to favor shippers whose freight is consistently dense and heavy. Higher-density freight generally falls in lower classes under density-based models, which means lower rates. If the operation ships heavy industrial goods, tightly packed cartons, or high-density pallet configurations, the density calculation often produces favorable class assignments. In that case, paying class-based rates can beat a FAK average that includes lighter freight profiles that are not part of the mix.

The role of accurate dimensions in both strategies

Whether the operation uses FAK or density-based rates, accurate dimensional data matters for three reasons. First, it shows the shipper what they are actually moving, not just what the system assumes they are moving. Verified pallet dimensions give shippers a clearer view of their true freight profile, which helps them compare actual shipment data against negotiated assumptions, catch recurring discrepancies, and have more informed conversations with carriers. First, knowing what you are actually shipping: without verified dimensions and weights, neither FAK negotiation nor density classification can be done accurately. 

Second, reducing post-shipment corrections: both arrangements can still produce adjustments when carriers measure differently than declared, and accurate outbound measurement reduces that gap. 

Third, building a negotiating record: when a shipper can provide historical dimensional data across lanes, the carrier conversation becomes substantive.

For building that record, pallet dimensioning systems create the outbound measurement foundation. The Cubiscan S9 and Cubiscan 1200 are commonly used at outbound lanes for this purpose, and Cubiscan cubing software keeps measurement data aggregated across shipments and facilities.

Know your freight before you negotiate the rate

The shipper who goes into a carrier negotiation with accurate density data, historical adjustment records, and a clear freight profile is in a fundamentally stronger position. Whether FAK or density-based pricing is the better fit depends on the shipper’s freight mix, lanes, carrier agreement, handling profile, and contract terms. But in either case, accurate dimensional data makes the negotiation more substantive. It gives the shipper a factual record of what is actually moving through the network, where adjustments are happening, and whether the current pricing structure reflects the real freight profile. To build the outbound measurement foundation that supports freight rate strategy, start with the pallet dimensioning systems overview. To discuss your freight profile and measurement options, contact Cubiscan.

Frequently asked questions

References

• FreightWaves. New LTL Freight Class Rules Take Effect on Saturday. https://www.freightwaves.com/news/new-ltl-freight-class-rules-take-effect-on-saturday