Major changes to the way less-than-truckload freight is categorized will take effect on Saturday following a rework to the National Motor Freight Traffic Association’s (NMFTA) decades-old classification system.
After many months of internal alterations, public listening sessions and feedback from industry participants, the nonprofit trade group has rolled out a simplified version of its 90-year-old National Motor Freight Classification (NMFC) system. The new guidelines are designed to move the LTL industry toward a density-based approach to classifying freight that more accurately reflects the actual cost of shipping goods.
“The LTL carriers want the full impact of these NMFC changes to be felt, both by them and shippers,” said Scooter Sayers, director of business development (LTL Solutions), at Cubiscan, a maker of freight dimensioners, in an interview.
The new coding system will still evaluate freight on four characteristics — density, handling, stowability and liability. However, it will now prioritize density when there are no special concerns with the other three.
Under the new rules, the number of density-based rating subprovisions has expanded from 11 to 13. Subprovision 11 has been amended to include densities ranging from 30 to less than 35 pounds per cubic foot (assigned class 60). Sub 12 ranges from 35 to less than 50 pounds per cubic foot (class 55), and Sub 13 covers densities greater than 50 pounds per cubic foot (class 50).
“Freight-all-kinds programs limit the impact, so expect LTL carriers to push even harder to eliminate FAK programs. If shippers want to keep their FAK program, they are going to pay for it,” Sayers continued.
The updates are substantial, with roughly 2,000 items being carved out from a list of 5,000 that were under review.
“These changes on July 19 to convert 2,000 NMFC items to a 13-sub table classed by density is just the start,” Sayers said. “More is coming, and we can expect substantially all commodities will have class at least partly determined by density. It is, after all, the number one cost driver for carriers.”
The overhaul aims to make the classification system more user-friendly, reduce costly freight reclassifications and provide more accurate freight rates upfront. The shift aligns pricing with the primary cost drivers for LTL carriers: distance, time and space.
For shippers, the changes promise significant benefits, including a simplified classification process, more predictable billing and greater cost efficiency. However, realizing these benefits requires preparation.
Experts have been advising shippers for months to audit their commodity classes and ensure they are tracking accurate dimensions, weight and density. Optimizing packaging to minimize wasted space will become more critical, as excess volume can result in a higher class and increased costs.
The organization also revamped ClassIT+, an online tool that helps shippers, carriers and 3PLs properly identify freight. Changes include more expansive APIs, an improved search function and faster responses.
Additional updates to the NMFC are expected in the coming months and years.
“The winners on the shipper side are going to be those who embrace the digital capture of dimensions, weight and photos at the handling unit level,” Sayers said. “ If carriers have to pick between shippers who provide this and shippers who don’t, who are they going to pick?
“LTL carriers want their shippers to provide them with accurate data on the BOL, and will both reward and favor those shippers in the long run.”
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