NMFC Update Shifts LTL Shipping to Densitybased Pricing

The National Motor Freight Traffic Association (NMFTA) has implemented the latest version of the National Motor Freight Classification (NMFC) system, requiring shippers to provide more accurate freight density information for fairer freight pricing. With the new regulations now in effect, Less-than-Truckload (LTL) carriers must actively embrace the change, strengthen communication with customers, and leverage digital tools to improve operational efficiency to succeed under the new rules. This shift necessitates adaptation and a proactive approach to ensure continued success in the evolving logistics landscape.
NMFC Update Shifts LTL Shipping to Densitybased Pricing

Imagine being a freight manager facing mountains of cargo, needing to precisely calculate each item's dimensions, weight, and density to secure fair shipping rates. The era of one-size-fits-all pricing is giving way to a sophisticated, data-driven approach—a transformation spearheaded by the National Motor Freight Traffic Association's (NMFTA) updated National Motor Freight Classification (NMFC) system.

While FedEx Freight delayed implementation until December 1, NMFTA confirms this most significant NMFC overhaul in nearly 90 years has successfully launched. Multiple carrier executives verified to industry publications that shippers are actively adapting to these changes, which demand more accurate cargo data—particularly density measurements—to enable fairer, more precise pricing.

NMFC Reforms: A Precision Operations Revolution

NMFTA considers Docket 2025-1 a pivotal moment for LTL freight classification, pricing, and understanding. Effective July 19, the updates align the classification system with modern packaging and shipping practices while maintaining supply chain fairness and consistency.

"These updates reflect years of intensive analysis and collaboration with members and LTL stakeholders," stated NMFTA Executive Director Debbie Sparks. "The modernized system better accommodates how goods are packaged and shipped today while preserving equity across supply chains."

The reforms address long-standing LTL market challenges like pricing opacity and information asymmetry. While the traditional NMFC system established basic freight classification standards, e-commerce growth and cargo diversification exposed its limitations. For instance, low-density shipments often qualified for lower freight classes due to lighter weight, eroding carrier profitability. The new rules target such imbalances through precision pricing.

"Know Your Freight": The New Mandate

Post-implementation, shippers' primary directive is "know your freight"—specifically its density. With low-density shipments comprising growing LTL volumes, precise density data becomes critical. Shippers must provide complete dimensional data rather than just weight. Carrier executives note that more detailed advance information yields more accurate pricing.

Traditional Freight All Kinds (FAK) rates are being phased out, while inaccurate weight reporting may trigger penalties. FedEx emphasized in a statement: "With many commodities transitioning to density-based classification, shippers must now meticulously document density, weight, and dimensions more than ever. For these shipments, density determines classification."

The company further warned that incomplete bill of lading (BOL) information may incur additional fees: "Once fully implemented, FedEx Freight may apply inspection fees (Items 980, 981) for incomplete or inaccurate BOL data." Nevertheless, it encouraged immediate adoption of updated classification rules ahead of the December 1 formal deadline.

Pitt Ohio: An Early Adapter's Success Story

Pittsburgh-based regional LTL carrier Pitt Ohio invested significant 2025 resources educating clients about preparing for NMFTA's expanded density-based classifications. The company also upgraded its LTL invoicing system to capture handling unit dimensions and NMFC item numbers.

"We've received remarkably few client inquiries about classification changes," reported Pitt Ohio Chief Marketing Officer Geoff Muessig. "This suggests our customer base has adapted exceptionally well to NMFTA's recent rating modifications."

Pitt Ohio's experience demonstrates that proactive preparation and client engagement can transform regulatory changes into competitive advantages.

ClassIT+: Digital Tools Enable Precision Classification

Supporting industry adaptation, NMFTA launched ClassIT+ on July 15. This digital classification platform replaces the legacy ClassIT tool as the exclusive future source for NMFC data, offering more scalable, accessible, intuitive, and precise LTL freight classification.

"As carriers, we've witnessed how misclassification and outdated interpretations create inefficiencies for all parties," noted NMFTA Chairman and Southeastern Freight Lines Pricing VP Clete Cordero. "ClassIT+ provides carriers, shippers, and 3PLs a vital tool to streamline classification and ensure accuracy from the outset."

NMFTA COO Joe Ohr added: "We recognize change creates uncertainty. ClassIT+ removes barriers by equipping users with necessary success tools. Whether you classify freight daily or occasionally, it brings clarity to a system evolving for modern shipping realities—regardless of your role."

ClassIT+ marks a major step toward digitizing and smartening the NMFC system. By delivering more convenient, accurate classification tools, it reduces errors, boosts efficiency, and generates tangible benefits for shippers and carriers alike.

Industry Impact and Implementation Strategies

The NMFC reforms present shared challenges for shippers, carriers, and third-party logistics providers:

For Shippers: Implement precise measurement and documentation systems; maintain close carrier communication; utilize digital tools like ClassIT+; reevaluate FAK rate applicability.

For Carriers: Enhance employee training on new classification methods; upgrade information systems for dimensional data processing; strengthen shipper partnerships; develop flexible pricing strategies.

For 3PLs: Bridge understanding between shippers and carriers; offer value-added services like cargo measurement and classification; leverage data insights for optimized shipping solutions.

This NMFC update represents a watershed moment for LTL shipping, signaling the industry's transition from generalized to precision operations. While implementation presents short-term challenges, the long-term benefits—enhanced efficiency, transparency, and equitable competition—promise to reward those who embrace the transformation.