This coming July 2025, the National Motor Freight Trucking Association is making a significant change to its classification structures. The intent behind these changes is threefold:
- To simplify
- To make it more accurate
- To focus on Density-based pricing much more effectively
LTL classification can be complex. There are quite a few ifs, ands, and buts, that impact how you classify your freight. The changes that NMFTA is making in Docket 2025-1 are designed to make the job easier for both carriers and shippers. That being said… Depending on your density more than likely your cost will go up not down.
The classification of LTL (Less Than Truckload) commodities in freight shipping is influenced PRIMARILY by a set of 4 standardized criteria established by the National Motor Freight Traffic Association (NMFTA) and are utilized through the National Motor Freight Classification (NMFC) system. These factors determine how freight is rated and priced. Here’s a breakdown of the main factors that impact LTL commodity classification:
- Density: Multiply L x W x H in inches of the shipment and divide by 1728 to get cubic feet. Divide shipments weight (lbs) by the cubic feet to get Pounds per Cubic Foot (PCF). Density in simple terms is the ratio of a shipments weight to its volume. The lower the density the higher the freight class.
- Stowability: How easily can a shipment be stored in a trailer compared to other freight. Factors include Shape, Dimension, Fragility, Hazmat & Packaging.
- Handling: How hard is it to handle the product. The harder to handle the higher the class. Items that require special equipment, are heavier or fragile or odd shaped, will have higher classes.
- Liability: Deals with the risk in transporting the product. If it is highly valued ($/lb), or susceptible to theft, damage or spoilage during transit, then it will carry a higher class.
NMFC Item Number & Description
- Each commodity has a unique NMFC (National Motor Freight Classification) item number with a description and class.
- Shippers must correctly match their goods with an NMFC item to avoid reclassification and to allow the carrier to properly rate it.
- The higher the risk during transport the higher the classification attached to the product to offset insurance and damage potentials
Here’s an example of two products that have different classifications based on the above four classification Factors:
Commodity | Density | Handling | Stowability | Liability | Class |
Floorings | High | Easy | Easy | Low | 55–60 |
Mirrors | Low | Fragile | Difficult | High | 175–200 |
- Impact: Higher risk = higher classification to offset higher insurance and damage potential.
As a shipper, you probably have a laundry list of classification ratings for the various commodities that you ship.
Some or all these products could be impacted in one of three major ways by the change coming in July:
- NO CHANGE
- FULL DENSITY applications
- LIABILITY, STOWABILITY OR HANDLING indicators on the BOL for certain items
Obviously, the best outcome for you is number #1. Where no change takes place. The best way to find out if your commodities are affected is to log into the NMFTA website and go to their classification item lookup site “NMFC LOOKUP TOOL” and enter your NMFC item numbers. This site will quickly tell you whether your items are impacted.
Below are examples for illustrative purposes only…
- If I enter item Number (#114130) an indicator warning message for Handling, Stowability and Liability will be associated with this product going forward.
These indicators tell the carrier that the product is susceptible to one or all these conditions. This allows the carrier to properly execute the shipment and assign the correct rates to it.
- Here’s a density example where density will impact the item entered (#73260) Note: Full Density: the density scale is generic for all commodities and goes from 0 to 50 PCF and from class 50 to class 500:
- Lastly, here’s an example where an item is NOT impacted: Enter item #128020 and the note says item 128020 is not part of 2025-1 changes.
- The density-based ratings will expand from 11 to 13 bands adding on two lower class bands for classes 50 and 55. The bands are from 50 up to 500.
Here’s a checklist of 4 key steps from NMFTA website that you need to follow to make sure you are properly prepared for the upcoming changes.
- Review Your LTL Classifications Immediately →
Make sure your classifications reflect the new NMFC updates on the Disposition Bulletin before July.
- Audit Your BOLs and TMS Data →
Update your TMS, WMS, or ERP systems to avoid incorrect freight bills.
- StrengthenCommunication with Carriers and 3PLs →
Talk to your Logistics providers to ensure your classifications are correct to reduce disputes, additional fees, and potential disruptions.
- TrainYour Shipping and Logistics Team →
All warehouse, logistics, and accounting teams should be made aware of these changes and their impact so you can prevent costly mistakes.
Riverside Logistics Consulting will be happy to review your products and provide an easy-to-understand impact study that allows you to fully comprehend what this change means for your business. If you would like Riverside to review your products you can contact Jim Durfee @ 804-335-8891 for more information and to start the process.