The National Motor Freight Traffic Association (NMFTA) is preparing a significant update to the National Motor Freight Classification (NMFC) system that will transform less-than-truckload (LTL) shipping operations across the industry. This comprehensive revision, scheduled for implementation in 2025, represents the most substantial change to freight classification in decades.
Industry-Wide Impact
The forthcoming changes will affect all participants in the LTL ecosystem—carriers, shippers, and third-party logistics providers (3PLs) alike. The modifications aim to simplify classification processes while introducing more granular density-based pricing structures that could significantly alter cost calculations.
Keith Peterson, NMFTA's Director of Operations, emphasized the organization's objectives: "Our goal is to simplify NMFC, making freight classification more straightforward and accurate. This should reduce friction between shippers, 3PLs, and carriers."
Phased Implementation Approach
The NMFC updates will roll out in stages, with initial changes appearing in Docket 2025-1. Subsequent phases will include:
- Standardized density classes for LTL shipments without special handling requirements
- Unique identifiers for freight requiring special handling, stowage, or liability considerations
- A streamlined and modernized commodity list
- Enhanced usability for the ClassIT classification tool
Nate Ripke, NMFTA's Director of Commodity and Standards Development, noted: "We estimate moving as many as 3,500 single-class items into 13 subcategories. Additional changes may follow with Docket 2025-2 and beyond."
Educational Initiatives
To facilitate industry adaptation, NMFTA has scheduled specialized listening sessions throughout August:
Carrier-Focused Session
August 6 (Tuesday) : Addressing classification accuracy, cost assessment, and operational efficiency improvements for carriers.
3PL-Specific Session
August 7 (Wednesday) : Exploring the intermediary role's evolving requirements in the new classification landscape.
Shipper-Oriented Sessions
August 8 (Thursday) : Two sessions focusing on cost management, carrier selection, and supply chain optimization strategies.
Additional Industry Events
NMFTA will participate in several collaborative educational opportunities:
- TIA Lunch & Learn Webinar (August 28)
- SMC3 LTL Listening Session (September 10)
- Journal of Commerce Inland Distribution Conference (September 30)
- NMFTA 2024 Fall Conference (September 29-October 1)
- NMFTA 2024 Weights & Research Advisory Committee Meeting (October 9-10)
Density-Based Pricing Evolution
The industry shift toward density-based pricing continues to accelerate, fundamentally changing how LTL rates are calculated. Historically, freight classification relied on four criteria:
- Density
- Handling requirements
- Stowability
- Liability (value)
Modern dimensioning technologies now enable precise density measurements for individual shipments rather than relying on category averages. This transition has created classification subcategories with rating classes ranging from 60 to 400 based strictly on pounds per cubic foot.
Mike Regan, Chief Relationship Officer at TranzAct, cautioned: "Many shippers don't fully understand what density-based pricing means for their costs. Two identical commodity descriptions might now have different rating classes, significantly complicating freight cost estimation."
The 2025 NMFC revisions will further institutionalize density-based classification across more commodity descriptions, requiring all supply chain participants to enhance their analytical capabilities.
Strategic Implications
Industry analysts suggest the changes present both challenges and opportunities. Organizations that proactively adapt to the new classification standards may gain competitive advantages through more accurate cost forecasting and optimized logistics processes. Conversely, those slow to adapt risk increased transportation expenses and operational inefficiencies.
Peterson concluded: "2025 will bring substantial changes. We encourage all NMFC and ClassIT users transporting goods via LTL carriers or freight brokers/3PLs to understand these developments. Our listening sessions provide the ideal platform to learn about the strategy and begin preparing."