Major Updates to LTL Freight Classifications Coming in 2025
Dina Youssef
Table of Contents
The less-than-truckload (LTL) freight industry is preparing for significant changes in 2025 as the National Motor Freight Traffic Association (NMFTA) introduces a revamped system for freight classification. These changes aim to simplify the existing methodology, which has been in place for nearly 90 years, and adopt a more density-focused approach. This modernization is expected to better align shipping costs with the actual characteristics of goods, benefiting carriers, shippers, and third-party logistics providers (3PLs) alike.
Why Change the Freight Classification System?
The current classification system, known as the National Motor Freight Classification (NMFC), serves as the backbone for identifying and categorizing freight. This system is widely used by carriers, shippers, and 3PLs to calculate shipping costs and manage logistics operations. However, over time, the system has become increasingly complex, leading to inefficiencies and unexpected costs.
One of the primary motivations behind the overhaul is to address long-standing concerns about the system’s complexity. By shifting to a structure that places greater emphasis on density while still considering other factors like handling, stowability, and liability, the NMFTA aims to streamline the freight rating process and reduce costly reclassifications. These updates promise to deliver more accurate upfront freight rates, enhancing transparency for all parties involved.
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Key Changes to the Classification System
The revised system will continue to evaluate freight based on four key characteristics:
- Density: The primary focus of the updated system.
- Handling: The ease or difficulty of managing the shipment.
- Stowability: How well the freight fits into standard shipping configurations.
- Liability: The risk of damage or loss during transit.
Among these, density will take precedence in cases where handling, stowability, and liability are not significant concerns. This shift is in line with the broader industry trend of leveraging dimensioners and other technologies to assess freight dimensions and weight more precisely.
Updates to Density Ratings
The density-based rating framework will expand from 11 to 13 subcategories, allowing for more granular classification. Key updates include:
- Subprovision 11: Covering densities from 30 to less than 35 pounds per cubic foot (assigned class 60).
- Subprovision 12: For densities from 35 to less than 50 pounds per cubic foot (class 55).
- Subprovision 13: Densities greater than 50 pounds per cubic foot (class 50).
These changes aim to make the classification process more intuitive and reflect actual shipping costs more accurately.
New Symbols for Special Freight Characteristics
Freight that requires special handling, presents unique stowability challenges, or has heightened liability concerns will now be marked with updated symbols. This added layer of categorization ensures that such shipments are properly accounted for and priced accordingly.
Timeline for Implementation
The updates will be rolled out in phases, with the first phase’s docket (2025-1) scheduled for release on January 30. Following a public feedback period, the changes will take effect on July 19. The transition is expected to involve more than 5,000 revisions to existing NMFC items, representing 40% of the current classification system.
Implications for Shippers and 3PLs
Shippers and 3PLs will need to adapt to the revised system to avoid disruptions and maximize the benefits of the new classifications. Accurate measurement and reporting of shipment dimensions and weight will become even more critical.
For example, organizations that have been relying on manual measurement methods will need to invest in technology like dimensioners to keep pace with the changes. Proper training for operations teams will also be essential to ensure a smooth transition.
The updated system’s emphasis on standardization and automation is expected to streamline the entire LTL shipping process, reducing errors and improving efficiency. As one industry expert noted, “The more the customer knows about their own freight, the better we’re all going to be.”
Modernizing Freight Classification Tools
The NMFTA is also upgrading its digital tools to align with the revised classification system. The current ClassIT+ tool, which helps shippers, carriers, and 3PLs accurately identify freight, is undergoing a major overhaul. Enhancements include expanded APIs, improved search functionality, and faster response times. Once complete, the tool will be rebranded and offered through a tiered subscription model.
Adapting to the Changes
While the updates are designed to create a more user-friendly system, they will inevitably result in some initial fluctuations in shipping costs. Shippers and 3PLs should be prepared for both positive and negative impacts as account profiles and margins are recalibrated. Negotiation will remain a key factor in determining pricing and profitability under the new system.
To stay competitive, businesses must proactively educate their teams, update their systems, and engage with their 3PL partners to ensure seamless integration of the changes. For assistance with your LTL shipping needs or to get a customized quote, visit our Get a Quote page.
The Role of 3PLs in Navigating the Transition
Third-party logistics providers will play a crucial role in helping shippers adapt to the new classification system. By leveraging their expertise and technology, 3PLs can simplify the transition and minimize disruptions. They can also assist with implementing dimensioners, training staff, and optimizing freight profiles to align with the updated standards.
If you’re looking for a trusted 3PL partner to help navigate these changes, Stellar Logistix offers tailored solutions to meet your logistics needs. Follow us on LinkedIn for the latest updates and insights: Stellar Logistix on LinkedIn.
A Step Forward for the LTL Industry
The upcoming changes to LTL freight classifications mark a significant step forward for the industry. By focusing on density and streamlining the classification process, the NMFTA is addressing decades-old challenges and paving the way for more efficient, accurate, and transparent shipping practices. These updates will ultimately benefit all stakeholders, from carriers to shippers to 3PLs, creating a more equitable and efficient logistics ecosystem.
Stay ahead of the curve by preparing your operations and leveraging the expertise of 3PL providers like Stellar Logistix. Together, we can ensure a smooth transition to the new system and unlock the full potential of LTL shipping in 2025 and beyond.