Transportation: Preparing for Upcoming Changes to NMFC Classifications

When shipping freight in the U.S., it is critical to understand how the National Motor Freight Classification (NMFC) system classifies less-than-truckload (LTL) shipments. NMFC is the standardized National Motor Freight Traffic Association (NMFTA) system that categorizes freight based on key characteristics to determine freight rates and assess the cost of shipping goods. The NMFTA approved changes to the NMFC system using a phased approach starting on July 19, 2025.

NMFC classifications are based on various characteristics: density, stowability, handling, and liability. The system categorizes freight into 18 classes ranging from Class 50 to Class 500, with Class 50 resulting in the least expensive shipping rates and Class 500 yielding the most expensive rates.  In early March, the NMFTA approved upcoming changes to their NMFC system, allowing for a density-based pricing model that better reflects the actual costs of shipping commodities. These changes will eliminate current pricing inconsistencies by classifying shipments varying in weight and size more accurately. Dive in to better prepare your company for these changes.

How do NMFC Classifications Impact Logistics?

NMFC classifications help shippers and carriers determine freight rates and assess the cost of shipping goods. It has several key impacts in developing logistics plans.

• Rate Determination – Carriers use the NMFC classifications to calculate shipping costs, while logistics providers use the classifications to quote shipments and conduct route analyses.
• Operational Efficiency – Incorporating the NMFC classifications into route planning allows logistics providers to optimize shipping routes, manage cargo space, and streamline handling processes based on the characteristics of the freight they are transporting.
• Risk Management – Higher NMFC classes typically require higher liability and risk, which, in turn, requires a higher level of insurance coverage and risk management strategies to protect freight against potential losses.
• Billing Accuracy – Logistics providers maintain precise records and classifications to ensure timely and accurate billing, minimizing the risk of charge discrepancies.
• Customer Relationships – Working in partnership, shippers rely on logistics providers to consistently deliver reliable and transparent pricing aided with proper classifications.
• Compliance – Staying updated with NMFC classifications and changes is crucial for ensuring compliance with industry standards reducing the risk of fines, penalties, or supply chain disruptions.

The NMFC classifications affect pricing, operational practices, risk management, and customer satisfaction. The NMFTA is currently preparing to implement significant changes in the coming months. It is essential to understand these changes and how they may impact shipments once they take effect.

Upcoming Changes to NMFC Classifications

The NMFTA announced changes to the NMFC system as part of their “Classification Reimagined” initiative. The purpose is to streamline workflows that will enhance the system’s user experience, increase accuracy on the first try, and reduce friction between transportation partners.

The NMFTA will use a phased approach to changes, with the first set of changes coming in Docket 2025-1. The changes will include a greater emphasis on density-based classifications, a clearer understanding of how freight should be classified, and improved tools for freight classification.

Here’s a breakdown of the key changes:

1. 1. 1. Standardized Density Scale for LTL Freight – One standard density scale will be used for shipments, meaning that the updated NMFC system will more precisely classify freight based on the actual density of a shipment.
         • The standardized scale for LTL will apply to goods that don’t have special handling, stowability, or liability issues.
         • The NMFTA is expanding the existing 11-class system to 13 classes, adding classifications of 50 and 55.
      2. New Classifications and Modernized Commodity Listings – Classification adjustments for certain goods will make the system easier to navigate and more relevant to today’s shipping practices.
         • New classifications will be introduced, some existing categories will be modified, and outdated or redundant categories will be eliminated to improve clarity and efficiency.
         • The changes will condense the list of categories and ensure that shipments are classified and priced appropriately.
      3. Unique Identifiers for Special Freight – According to the NMFC website, there will be “unique identifiers for freight with special handling, stowability, or liability needs.”
         • Special freight typically applies to fragile items like glass and electronics, hazardous materials, high-value shipments, and odd-shaped or oversized freight.
         • The changes are intended to provide better pricing transparency for specialty freight with more accurate shipping classifications.
      4. Improved ClassIT Classification Tool – The NMFTA is enhancing the usability of its ClassIT classification tool to help shippers determine the appropriate freight class for their shipments.
         • The redesign of the ClassIT tool will streamline the classification process, enhance usability, and improve accuracy.
         • Automation aspects of the tool will help ensure shipments are classified correctly before pickup, reducing paperwork and resulting in faster shipping processes.

With the upcoming changes, shippers should expect more accurate and consistent freight pricing based on the density of their shipments. To prepare for these changes, we recommend that shippers review their current freight classifications, familiarize themselves with the new classification changes, and optimize their packaging and loading practices accordingly. Logistics providers can also provide insight into which commodities will be moved to the full density-based scale.

Steps to Prepare for the NMFC Updates

1. 1. 1. Audit Your Current Freight Classifications – Audit the NMFC classifications currently used for your freight and identify which shipments may be affected under the new density-based model.
      2. Review the NMFC Changes – Review the updated commodity list and classification changes to identify which shipments need to be reclassified for accuracy and how these changes may impact your transportation rates.
      3. Optimize Your Packaging and Loading Practices – Plan adjustments that can optimize your shipments to lower costs, such as repacking lightweight or bulky items to increase density, consolidate shipments, and reduce unused space.
      4. Verify Freight Dimensioning – Ensure your shipment data includes accurate weight and measurements to prevent costly re-classifications. You may want to consider investing in dimensioning equipment to improve accuracy.
      5. Update TMS and Rating Tools – Review the potential need for TMS integrations and automated rate calculations that will need to be updated to reflect the new classifications. ClassIT-plus API could also be considered for real-time classification accuracy.
      6. Pricing Agreements – Review your current pricing agreements and discuss contract adjustments or pricing structures needed to reflect the new classifications.
      7. Train and Your Team – Provide proper training and onboarding to ensure your logistics and operations team understands the new classifications and any changes in packaging, procedures, or technology. Falling short on staff training could lead to the underutilization of automation tools and limit your ability to capture the full impact of the tools being used.
      8. Update Documentation – Shipping documentation will need to be updated to reflect the new classification requirements, including Bill of Lading details and product specifications.

As a full-service logistics provider, our team can help you navigate these changes to ensure your freight is classified correctly and cost-effectively under the new classifications. We will work with you to evaluate the impact of these changes and how they may affect your transportation spend. We also have a comprehensive Solution Design team that can analyze route options and engineer solutions to optimize your supply chain. Reach out to our team today to start preparing for the changes ahead.