Classifying less-than-truckload (LTL) cargo has never been easy. So many variables go into these mixed loads that determining the correct National Motor Freight Classification (NMFC®) code—and ultimately, the accurate shipping cost—is like navigating a complex puzzle for every single shipment. Factors like the density, dimensions, stowability, handling, and liability of each item in those shipments further complicate the classification process.
The classification issues are especially challenging for the LTL carriers themselves, whose primary focus is charging for the room that gets taken up in their trailers. Unlike full truckload shipments of consistent cargo, LTL requires intricate calculations that account for the space that every consignment takes up and the associated handling requirements. For these and other reasons, establishing straightforward pricing models that reflect the true cost of transporting a mixed assortment of goods is often based on arbitrary data, metrics, and measurements.
These realities create headaches for shippers, carriers, and third-party logistics (3PL) providers tasked with getting LTL shipments from point A to point B quickly, efficiently, and affordably.
“What might appear as a straightforward collection of goods can quickly become a complex system of measurements, material assessments, and rulebook interpretations,” says Keith Peterson, director of operations at National Motor Freight Traffic Association, Inc. (NMFTA™). “This often leads to discrepancies, delays, and unexpected charges.”
Well aware of the challenges associated with LTL freight classification, the NMFTA recently rolled out some classification changes focused on streamlining the process and making it more understandable for shippers, carriers, and 3PLs. The changes, which go into effect July 19, will simplify the process, improve transparency, and make the end-to-end LTL freight classification process more efficient than ever.
The NMFTA is rolling out the changes in phases, with Docket 2025-1 being the first of several that it plans to introduce. This phase includes the following changes:
In addition to the NMFC changes set to take place on July 19, NMFTA’s online version of the NMFC book, ClassIT®, will be upgraded to ClassIT+™. This revamped tool will offer an application programming interface (API) and will go live July 15. The tool will include the most current NMFC data and is more user-friendly than its predecessor. Users that adopt the new ClassIT+ API will be able to leverage the upcoming NMFC data changes and reduce reclassification disputes and chargebacks through accurate, automated classifications.
Peterson says NMFTA solicited input from a wide range of industry experts, carriers, and companies in its quest to modernize and streamline the LTL freight classification systems. The core change is a shift to using a shipment’s dimensions and weight (or, density) when determining freight costs. This pivot will require shippers to dial in the dimensions and weight of the products that they’re shipping and then work with LTL carriers to ensure accurate data is being shared. That way, carriers can plan out their loads in advance and ensure trailers are loaded to as close to 100% capacity as possible.
“We’ve been working to make density the primary characteristic for a while now, but last year we kicked that initiative into turbo gear,” Peterson explains. “Our goal is to simplify the process and make it more uniform across all freight that fits on and gets shipped on a pallet.” Standardizing classification by density means that even if there are different item numbers on that pallet, the shipper can still figure out and confidently share the data with its carrier.
To better help carriers, shippers, and 3PLs prepare for the impending changes set for July 19, NMFTA created a free resource: NMFC Item Lookup Tool. The tool will only be available for a limited time so those interested are encouraged to sign up today at www.getclassification.com. Tool users can easily see whether their freight item numbers are impacted by the changes. Carriers, shippers, and 3PLs can use the tool to enter one or more NMFC item numbers, view the results, and then export those results to a CSV file to share with team members and/or update their internal systems.
Beyond simply identifying impacted item numbers, this free tool offers a streamlined interface focused on clarity and ease of use. Anyone who ships LTL freight can quickly input their relevant NMFC codes and learn of any modifications to the classification, description, or applicable rules. This direct access to information, without the barrier of a subscription fee, underscores the NMFTA's commitment to supporting a smooth adoption of the 2025 updates.
“By offering this readily available resource, we aim to foster a more informed and prepared shipping environment,” says Peterson, “ultimately contributing to greater accuracy and efficiency within the LTL freight industry.”
The NMFTA has published numerous video tutorials and helpful guides for companies that want to ensure they’re prepared for the July 19 changes. Peterson says now is a good time to review the updated NMFC list to see if your products are being affected by the changes, use this time to identify inefficiencies in your shipping workflow, and evaluate whether your LTL freight is being packaged as densely and compactly as possible. Shippers should also make recording the dimensions of shipping units mandatory to ensure proper classification in accordance with the new rules. Record handling unit dimensions on the bill of lading (BOL), for example, and also ensure weight and dimensions are listed correctly.
Peterson also advises shippers to open up dialogue with carriers to make sure everyone is on the same page, ready for the new classifications and working toward common goals. Understand that not all LTL networks are the same, and that classification rules may vary slightly by carrier. Ultimately, your handling units should maximize trailer space efficiency, so anything you can do at the warehouse/fulfillment level to make this happen should translate into a more efficient process overall.
Here are additional NMFTA resources you can use to ensure a smooth transition to the new classification rules:
Adapting to change and implementing new processes takes time, but the NMFTA is fully dedicated to helping the LTL freight community—and the shippers that rely on it—navigate the new classification process with as much clarity and support as possible. By proactively utilizing the provided resources, engaging in open communication with carriers, and embracing the shift towards density-based classification, companies can position themselves for a more streamlined, transparent, and ultimately cost-effective future for LTL freight transportation.
The upcoming changes, while requiring initial adjustments, hold the promise of a more equitable and efficient system for all involved. Companies that haven’t previously used the density (i.e., dimension-plus-weight) freight classification approach should take time to relearn their shipment profiles and everything that goes into them. Can you package your goods a bit tighter? Fill some of the empty air pockets in your boxes? Remove some of the extra dunnage and make the packages themselves smaller? Even these small moves can add up to substantial LTL freight savings over time.
Carriers also benefit when companies pay closer attention to their shipment profiles because they can 1) pack more goods onto their LTL trailers and 2) make better use of their equipment. And fewer trucks on the road means less environmental impact overall—a target that the transportation industry is striving for but isn’t always easy to hit in today’s busy shipping environment.
Comparing the new LTL classification process to parcel’s shift to dimensional (DIM) weight pricing, Peterson says the new LTL density rules may initially create some additional challenges for shippers as they adapt to the new classifications. He advises companies to use NMFTA’s free tool to look up their product’s classifications and to focus on packing pallets—and the goods they carry—as densely and efficiently as possible to keep pricing down and help fill trucks that may otherwise hit the road half-empty.
“We see this as a major opportunity to take a look at how things are packaged up and make improvements in this area,” says Peterson, “all in the interest of the overarching goal of packing trailers as tightly as possible.”
To view all resources, visit www.nmfcchanges.com.
View additional videos here.
