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On July 19, 2025, significant changes will come into effect in the National Motor Freight Classification (NMFC) system.
On July 19, 2025, significant changes will come into effect in the National Motor Freight Classification (NMFC) system, administered by the National Motor Freight Traffic Association (NMFTA). Although these changes were announced in 2024, their implementation will present challenges for freight transportation, especially in the pricing of Less Than Truckload (LTL) shipments.
The NMFTA has worked for several years on an initiative called “Classification Reimagined,” based on the idea that as technology advances, both the industry and products evolve. Since LTL freight is closely linked to the evolution of products, a new classification is necessary. However, it is crucial for carriers to stay informed about these changes to avoid unforeseen costs and streamline their logistics operations.
According to the NMFTA, the main changes will bring the following benefits to the industry and LTL freight transportation:
- Improve the user experience of freight classification.
- Increase the system’s accuracy on the first attempt.
- Reduce friction between shippers, carriers, and 3PLs.
Implications for carriers, shippers, and 3PLs
LTL rates have traditionally been based on the type of goods, leading to differences in size, weight, and handling requirements. With the new pricing model, a density-based approach will be adopted, considering the actual use of space. This means LTL rates will more accurately reflect real transportation costs, rewarding carriers who use space efficiently while increasing costs for those who do not.
For LTL carriers, the simplified classification process will result in a standardized density scale when there are no handling, stowage, or liability issues. The main implications will be easier identification of NMFC items and freight classes, lower-density classes for heavier shipments, greater consistency between shipments with similar characteristics within the same class, and changes to NMFC items, subclasses, and freight classes.
On the other hand, for 3PLs in LTL, the implications will be similar to those faced by shippers.
Changes in the NMFC system
The main change in the classification system is the adoption of freight classes based on density. Additionally, many traditional NMFC codes will be eliminated or merged, requiring carriers to provide accurate measurements and documentation of shipment dimensions to avoid incorrect classifications and additional surcharges.
Carriers will also have more authority to reweigh and reclassify shipments at the time of pickup if the dimensions provided by the shipper do not match the actual measurements. Any discrepancies could lead to unexpected charges, making accurate shipping data more important than ever.
Finally, stricter packaging requirements will be implemented. Shippers who do not adjust their packaging to meet the new density-based classifications may face increased rates, while those who optimize their packaging to meet the most efficient density thresholds will benefit from lower shipping costs.
How to prepare for these changes?
For some companies, these changes could lead to increased costs. Freight rates may rise for light or bulky items, and inaccurate shipping data could lead to unexpected charges.
On the other hand, companies that improve supply chain efficiency by better utilizing space will experience a positive impact on both shipping costs and warehouse operations.
So, how should you prepare? According to Rob Gale, Vice President of Business Development at Transport USA & Williams & Associates, getting ready for these changes will be simple by following three key steps. This way, carriers can ensure that costs remain stable for their businesses:
- Measure and accurately document the density of the freight.
- Optimize the use of packaging and pallets.
- Review and update agreements with carriers.
Carriers who begin preparing in advance for these changes will ensure that LTL freight rates remain stable for their businesses.
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