The National Motor Freight Traffic Association (NMFTA) is preparing significant updates to the National Motor Freight Classification (NMFC) system, scheduled to take effect in Q1 2025. These changes will fundamentally transform less-than-truckload (LTL) shipping operations for carriers, shippers, and third-party logistics providers (3PLs).
Industry-Wide Impact and Preparation
Recognizing the importance of a smooth transition, NMFTA has organized a series of specialized listening sessions and collaborative workshops to help supply chain stakeholders prepare:
- Carrier-Focused Session: August 6 (Tuesday) 2:00-3:00 PM ET
- 3PL-Focused Session: August 7 (Wednesday) 2:00-3:00 PM ET
- Shipper-Focused Sessions: August 8 (Thursday) 2:00-3:00 PM and 3:30-4:30 PM ET
Knowledge-Sharing Initiatives
NMFTA is partnering with industry associations to deliver comprehensive educational programs:
- TIA Lunch & Learn Webinar (August 28)
- SMC3 LTL Listening Session (September 10)
- Journal of Commerce Inland Distribution Conference (September 30)
- NMFTA 2024 Fall Meeting (September 29-October 1)
- NMFTA 2024 Weighing & Research Advisory Committee Meeting (October 9-10)
Streamlining the Classification Process
Keith Peterson, NMFTA's Director of Operations, emphasized the organization's objectives: "Our goal is to simplify NMFC to make freight classification easier. This will help reduce friction between shippers, 3PLs, and carriers." He noted that significant changes coming in 2025 will affect all users of the NMFC and ClassIT systems.
Key Changes in the 2025 Update
The reform focuses on four major improvements:
- Standardized density-based classifications for freight without special handling requirements
- Unique identifiers for freight with special handling, stowability, or liability concerns
- A modernized and streamlined commodity list
- Enhanced usability of the ClassIT classification tool
Nate Ripke, NMFTA's Director of Commodities and Standards Development, revealed: "We estimate moving up to 3,500 single-class items into 13 subcategories." Additional changes may follow in subsequent updates.
The Rise of Density-Based Pricing
The LTL industry is witnessing a growing shift toward density-based pricing models, which could significantly impact shipping costs. This approach uses dimensional measurement technology to determine precise density information for each shipment, moving away from traditional classification averages.
This change creates new complexities in freight rating, as identical commodity descriptions may now receive different class ratings based on actual density measurements. Industry experts note that while some shippers may see this as an opportunity for better carrier negotiations, others may face increased shipping costs.