NMFC Updates Key 2025 Changes for LTL Freight Classification

NMFTA is reforming the NMFC classification system, aiming to simplify less-than-truckload (LTL) shipping, reduce costs, and improve efficiency. The reform seeks to eliminate friction through standardization and other measures. This simplification will likely involve a greater reliance on density-based pricing. NMFTA will host meetings to help navigate these changes and understand the implications for shippers and carriers. The goal is a more streamlined and cost-effective LTL transportation process.
NMFC Updates Key 2025 Changes for LTL Freight Classification

The National Motor Freight Traffic Association (NMFTA) has unveiled sweeping changes to the National Motor Freight Classification (NMFC) system, set to take effect in Q1 2025. The revisions aim to simplify freight classification, reduce shipping costs, and improve operational efficiency across the less-than-truckload (LTL) transportation sector.

Comprehensive System Upgrade

The NMFC overhaul represents a fundamental restructuring of the classification framework designed to address long-standing challenges in LTL shipping. Key modifications include:

  • Standardized density classes: Implementation of uniform density grades for LTL shipments without special handling, stacking, or liability requirements.
  • Unique identifiers: Introduction of distinctive codes for freight requiring special handling to prevent transit damage.
  • Modernized commodity list: Streamlined product catalog for easier classification lookup.
  • Enhanced ClassIT tool: Upgraded digital classification platform with improved usability and accuracy.

Industry Engagement Initiatives

NMFTA has scheduled a series of stakeholder engagement sessions from August through October 2024 to facilitate industry transition:

  • Carrier-focused LTL listening session (August 6)
  • 3PL-specific workshop (August 7)
  • Shipper-oriented meetings (August 8)
  • Collaborative webinars with TIA (August 28) and SMC3 (September 10)
  • Featured presentation at the Journal of Commerce Inland Distribution Conference (September 30)

Executive Perspective

Keith Peterson, NMFTA's Director of Operations, emphasized the initiative's objectives: "Our goal is to simplify NMFC to achieve accurate freight classification on first attempt. The 2025 changes will significantly impact all NMFC users, and we're committed to ensuring smooth adoption through phased implementation."

The revision process will occur incrementally, beginning with Docket 2025-1. Subsequent phases will address density-based classification standardization, specialized freight identification, and digital tool enhancements.

Market Implications

The shift toward density-based pricing represents a fundamental change in LTL rate determination. Historically, freight classification relied on four criteria—density, handling requirements, stackability, and liability—aggregated into standardized freight classes ranging from 50 to 500.

With advanced dimensioning technologies enabling precise density measurement per shipment, NMFC is evolving to incorporate more density-specific classifications within product descriptions. This transition may create pricing variability for identical commodity types based on actual shipment characteristics.

Industry analysts suggest the changes will reward shippers who optimize packaging and load planning while presenting new negotiation dynamics between carriers and logistics providers. The reforms aim to establish a more transparent and collaborative LTL ecosystem, though adaptation strategies will vary by supply chain role.