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    488510 - Freight Transportation Arrangement

    If you're involved in the logistics or shipping industry, or looking to enter the freight transportation sector, understanding NAICS Code 488510 is crucial. This code identifies businesses specializing in Freight Transportation Arrangement, acting as the essential link between shippers and carriers to ensure goods move efficiently and effectively. In this blog, we'll dive deep into what NAICS 488510 entails, its role within the broader Transportation and Warehousing sector, typical business activities, size standards, and provide examples of companies that operate under this classification.


    What is NAICS Code 488510?

    NAICS Code 488510 pertains to Freight Transportation Arrangement — an industry primarily engaged in arranging the transportation of freight between shippers and carriers. These establishments do not typically handle the freight themselves but act as intermediaries, coordinating the movement of goods via multiple transportation modes such as truck, ship, rail, or air.

    In simpler terms, businesses under this code:

    • Serve as brokers or agents to connect freight owners with carriers.
    • Facilitate logistics planning and freight forwarding services.
    • Ensure compliance with customs and shipping regulations.

    Sector Overview: Transportation and Warehousing

    NAICS 488510 falls under the Transportation and Warehousing sector, which encompasses industries involved in the movement, storage, and distribution of goods.

    Typical Business Activities Include:

    • Freight Forwarding: Organizing shipment and delivery of goods across domestic and international borders.
    • Customs Brokerage: Assisting with customs clearance and compliance for imported and exported goods.
    • Shipping Agencies/Agents: Acting on behalf of shipping companies to manage operations and customer relations.

    These activities facilitate the global supply chain, reducing friction between producers and buyers by leveraging expertise in transportation logistics.


    Size Standard for NAICS Code 488510

    To qualify under this NAICS code for government contracting or other SBA programs, companies must meet the following size standard:

    • Maximum Average Annual Revenue: $20 million

    This size standard helps determine eligibility for small business benefits, certifications, and set-aside contracts in freight transportation arrangement services.


    Examples of Businesses under NAICS 488510

    Businesses that typically fall under this code include:

    • Freight Forwarders: Companies that plan and coordinate shipment logistics across multiple carriers and transport modes.
    • Customs Brokers: Specialists who assist clients with customs documentation and regulatory filings.
    • Shipping Agents: Firms representing ship owners to manage cargo operations and coordinate with port authorities.

    NAICS Code 488510 - Freight Transportation Arrangement: Code Details Table

    Code Element Description
    NAICS Code 488510
    Title Freight Transportation Arrangement
    Industry Description Arranging transportation of freight between shippers and carriers
    Sector Transportation and Warehousing
    Key Activities Agents, shipping, Customs brokers, Freight forwarding, Marine shipping agency, Shipping agents
    Typical Business Types Freight forwarders, Customs brokers, Shipping agents
    Size Standard $20 million average annual revenue

    Frequently Asked Questions (FAQs)

    What does NAICS code 488510 cover?

    It covers businesses that primarily arrange freight transportation between shippers and carriers but do not themselves transport goods.

    Who uses NAICS 488510?

    Freight forwarders, customs brokers, and shipping agents typically use this classification.

    Why is the size standard important?

    The $20 million size standard determines which businesses qualify as small under SBA guidelines, making them eligible for small business programs and contracting opportunities.

    How does freight transportation arrangement differ from freight transportation?

    Freight transportation refers to the actual movement of goods, whereas freight transportation arrangement focuses on coordinating, planning, and managing the shipment logistics without physically moving the freight.

    Can a company provide both freight forwarding and customs brokerage services under this NAICS code?

    Yes, many companies offer a mix of services involving freight forwarding, customs brokerage, and shipping agency activities within NAICS 488510.


    Conclusion

    NAICS Code 488510 - Freight Transportation Arrangement is a pivotal classification in the Transportation and Warehousing sector, representing businesses that act as logistical intermediaries between shippers and carriers. Understanding this code helps companies identify their market niche, navigate government contracting, and align their operations within industry standards. Whether you're a freight forwarder, customs broker, or shipping agent, recognizing the scope and requirements of NAICS 488510 can open doors to growth and compliance advantages in the freight transportation arena.


    Keywords: NAICS code 488510, freight transportation arrangement, freight forwarders, customs brokers, shipping agents, transportation and warehousing sector, freight logistics, size standard $20 million