NMFC Changes: Major NMFC Updates Impacting 2025's Freight Classifications

What’s New with NMFC in 2025??

As part of the National Motor Freight Traffic Association, Inc. 's continuous "Classification Reimagined" initiative, there is big news for 2025: the system is shifting to density-based classification. This means your freight class will be determined mainly by how dense (or compact) your shipment is, rather than its type or characteristics. This change aims to more accurately reflect the actual cost of transporting different types of freight.?

Keith Peterson stated that the main goal of this change is to reduce friction for carriers, shippers, and 3PLs.?

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Why This Change Is a Good Thing??

The transportation of LTL freight is ever-evolving with product changes, technological advancements, and new industry methods, making the shift from traditional freight classification to density-based freight class a much-needed one and has several benefits.?

1. More Accurate Pricing: The new system better reflects the true cost of moving goods, which can lead to fairer pricing.?

2. Dimensional Weight Matters: The new system will also consider the size of your shipment, not just its weight. This means if your shipment takes up a lot of space but isn’t very heavy, its class might change.?

3. Unique Identifiers for Special Needs: For freight that requires special handling, stowability, or has specific liability concerns, the NMFC 2025 changes include unique identifiers.?

4. Condensed and Modernized Commodity Listings:??

This makes it easier for shippers and carriers to find the correct freight classification, reducing complexity and improving the accuracy of freight class determinations.?

5. Improved ClassIT? Usability: The enhancements make the tool more user-friendly, facilitating quicker and more accurate freight classifications, and supporting a smoother transition to the new system.?

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Impact on Shippers, Carriers, and 3PLs?

Shippers?

The transition to a density-based classification system may lead to lower transportation costs for certain shipments, depending on their density. This new approach emphasizes the importance of accurate dimensions and density for determining freight class. While there may be a learning curve, the transition period is designed to help ease this change.?

Carriers?

The new freight classification system could lead to potential changes in pricing and revenue models, necessitating updates to internal systems and processes to handle the NMFC changes. This shift also presents an opportunity to improve efficiency and reduce friction with shippers and 3PLs through the simplified NMFC system.?

3PLs?

Opportunity to enhance communication and visibility with carriers and shippers through the streamlined NMFC changes.?

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How to Get Ready??

The NMFC has released Phase 1 (Docket 2025-1), introducing changes that will be implemented gradually over the next year. This transitional period allows shippers and carriers to adjust to the new system, ensuring a smooth transition and minimizing disruptions to supply chains. By understanding these upcoming NMFC changes, industry participants can proactively prepare their operations and logistics to adapt to the new density classification system.

Utilizing automated pallet dimensioners can significantly aid in this transition, providing precise measurements and reducing manual errors. This preparation can potentially lead to cost savings and improved transportation efficiency, ultimately enhancing overall supply chain performance.

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Watch Out for NMFTA Space??

NMFTA organizes one-hour LTL Listening Sessions for??

• Carrier on Tuesday, August 6, 2024?

• 3PL on Wednesday, August 7, 2024??

• Shipper on Thursday, August 8, 2024?