For freight shippers, understanding the National Motor Freight Classification (NMFC) system is critical for the accuracy and efficiency of your logistics operations. In fact, the NMFC plays a vital role in determining the cost of less-than-truckload (LTL) shipping and how freight is categorized based on its key characteristics.
With major changes to the NMFC system coming in 2025, it's essential for shippers, carriers and third-party logistics (3PL) providers to prepare. In this blog, we'll break down the key changes, what they mean for your business, and how GlobalTranz can help!
How is freight class currently calculated?
Freight class is an essential element of the LTL shipping process, as it determines the shipping cost and the appropriate mode of transport for goods. To determine freight class, the system leverages several factors including:Â
- Density: The weight of a shipment relative to its size.
- Stowability: How easily the cargo can be loaded and stored.
- Handling: Whether the shipment requires special care due to its nature.
- Liability: The risk of damage or theft.
The National Motor Freight Traffic Association (NMFTA) is the organization responsible for managing the NMFC system. They set the rules that guide the freight classification process and ensure that the system remains up to date with current industry needs.
What are the freight class changes for 2025?
The 2025 freight class changes aim to simplify and streamline the freight classification process, making it more accurate, efficient and cost-effective for shippers, carriers and 3PL providers. Some of the most important changes include:
1. New classifications, updated commodity listings and unique identifiers
The NMFC updates will introduce new classifications for certain goods, modify existing ones and condense the list in general. This will help eliminate outdated or redundant categories, making the system easier to navigate and more relevant to modern shipping practices. Additionally, there will be "unique identifiers for freight with special handling, stowability, or liability needs," according to the NMFC website.
2. Standardized density scale
According to the NMFC website, there will be "one standard density scale when handling, stowability, and liability issues are not present. There will also be more instances where freight classes will be determined by actual shipment density." Density has always been a key factor in freight class, but the new standardized scale will make density even more significant in classification determination for certain freight shipments.
3. Enhanced ClassIT tool
To help with the transition, the NMFTA is enhancing the ClassIT (Classification Information Tool). This will help shippers, carriers and 3PL providers better navigate the updated system and ensure they are classifying their shipments correctly.
"The 2025 updates to the NMFC freight class system aim to improve transparency and consistency, ultimately reducing shipping costs and administrative burdens for both shippers and carriers."
— Mike Grayson, WWEX Group CRO & EVP
Why are these changes happening now?
The main goal of the 2025 update is to simplify the freight classification process. Over time, the NMFC system has become cumbersome and outdated, and many of its rules no longer align with current shipping practices. With the new changes, the NMFTA aims for:
Simplified shipping processes
Shippers will have fewer categories to worry about and a clearer understanding of how their freight should be classified. This will streamline the entire process, from quoting to invoicing — ultimately reducing confusion.
Reduced administrative burden
One of the biggest challenges for shippers is managing freight classification and ensuring the correct class is applied to each of their shipments. With the 2025 changes, the process will be simpler, reducing the time and effort spent by staff on classification management. This will lower operational costs and increase efficiency.
More accurate pricing
The updated system will provide more accurate pricing based on the new classifications, reducing the likelihood of reclassification fees or unexpected charges. With clearer guidelines, shippers can be confident in the pricing they receive and avoid costly mistakes.
Key Dates for the 2025 Freight Classification Changes
According to the NMFC website, here are the key dates for the changes:Â
- January 30, 2025: The docket issue date will be the first chance to review the proposed changes.
- March 4, 2025: The FCDC (Freight Classification Development Council) public meeting will take place to review the proposed changes.
- July 19, 2025: The supplement effective date, when the approved changes will officially go into effect.
Shippers should be aware of these dates to stay informed and prepared for the updates. The NMFC website has valuable information and resources you can check out as the changes roll out in 2025.
How can a 3PL help?
Navigating the upcoming changes to the NMFTA freight class system may seem daunting. But a 3PL like GlobalTranz can help ease the transition by providing:
Expert guidance and support
We have the expertise to help you reclassify your shipments, understand the new classification system and adjust pricing models accordingly. Our experienced teams can offer tailored advice on how to best implement the changes in a way that benefits your business.
Technology and tools
In addition to expert advice, we offer advanced technology and tools, like our freight density calculator and transportation management system (TMS). These will help shippers identify changes in freight classes, ensure the correct classifications are applied and significantly reduce the risk of errors during the transition.
"We are committed to helping our clients navigate the transition to the new NMFC system, offering personalized solutions to ensure a smooth and efficient implementation. Working with a 3PL like GlobalTranz just makes sense at a time when there are exciting changes to the freight class system."
— Mike Grayson, WWEX Group CRO & EVP
Need help understanding the freight class changes? GlobalTranz can help!
Understanding the upcoming NMFC freight class changes for 2025 is crucial for shippers looking to maintain cost-effective and efficient shipping practices. By staying informed and leveraging our expert advice and technology, you can ensure a smooth transition to the new system.
Stay tuned for more content in the coming months, where we will continue to provide insights and guidance on how to successfully navigate the NMFC updates. If you need assistance or have questions, don't hesitate to reach out to GlobalTranz for support during this transition!