by Elise Stynen, RoadNews Editor

On July 19, 2025, the U.S. National Motor Freight Traffic Association (NMFTA) will make a significant change to the National Motor Freight Classification (NMFC) system. This “reimagination of classification,” aims to modernize the current commodity classification system for less-than-truckload (LTL) freight. It will affect how transportation costs are calculated for various goods. Because of this, LTL shippers in the U.S. need to prepare now to mitigate a direct impact on LTL transportation rates.

The NMFC system plays a fundamental role in determining LTL shipping rates. Upon implementation, the revision of NMFC is likely to reset LTL rates to a new baseline as carrier pricing departments review shipments they handle based on new standards.

Those who ship a wide range of commodities or SKU’s have a higher exposure to the proposed modifications compared to others as there are approximately 3,000 specific commodity items being addressed as part of the NMFC’s update in July.

Understanding Freight Class and the upcoming change

In LTL shipping in the U.S., freight class directly influences the cost of a shipment. The NMFC categorizes freight into 18 classes, ranging from 50 (lowest) to 500 (highest). Lower freight classes apply to denser, easier-to-handle items, leading to lower shipping rates per hundred pounds. A higher freight class signifies less dense, more difficult-to-handle items, leading to a higher rate per every hundred pounds shipped.

In addition to density, freight class is also determined by considering handling, stowability and liability. Collectively, these four characteristics determine the appropriate freight class, which LTL motor freight carriers use to calculate rate per hundred pounds and discount based on their internal costing structures

For the July update to the classification codes, NMFTA is focusing on commodities they have identified as being “density-only” commodities. As an example, a palletized 36-inch refrigerator is in-scope, whereas a 15-footbundle of pipe is “out-of-scope” due to its lack of stowability.

An example: refrigerators

Staying with refrigeration as an example, the current freight classification for all refrigeration, regardless of the shape or size, is class 150. This is referred to as a “static” class item, meaning all refrigeration is always classified as 150, whether a college-dorm refrigerator or a 7-foot tall commercial refrigerator. Starting in July, refrigeration will become a “density-only” item in which the freight class will be determined based on the density (pounds per cubic foot, or PCF) of the refrigerator as it ships.

Per the NMFTA’s revision, density-only items will be one of 13 freight classifications, all based purely on PCF. This 13 sub-category classification system ranges from class 50 to 400. Class 150 (current for refrigeration) is not represented in this particular density scale, however, even if it were, shippers of refrigeration would still need to determine the PCF to apply the appropriate freight class to the bill of lading of each refrigeration shipment.

Below is a representation of how the costs to ship refrigeration might change, using the average characteristics of each unit and assuming the refrigerator is palletized and non-stackable:

Actions distributors can take to prepare

1. Engage with Carriers and 3PLs: Shippers can minimize disruptions by collaborating with road freight carriers and 3PLs, proactively addressing freight classification changes to prevent billing disputes and unexpected rate adjustments.
2. Audit Your Current Freight Classifications: Now is a good time for shippers to review current NMFC classifications—whether stored in internal systems or based on institutional knowledge— to identify how each commodity will be impacted by the new density-based system. Certain commodities will shift to new classes, which will have both a cost implication and administrative impact.
3. Optimize Packaging and Density: Since density plays a more significant role in classification under the revised NMFC, optimizing packaging to increase density can result in cost savings. To take advantage of this opportunity, shippers can evaluate ways to increase dimensional weight and maximize pallet space efficiency.
4. Invest in Additional Resources: Although not required, purchasing a dimensioning machine or dimensioning technology can help shippers mitigate and organize the applicable changes to the NMFC. This would help not only with the changes coming this summer but also as the NMFC continues to adjust freight classifications in the future.
5. Update Internal Systems and Processes: Warehouse management systems, transportation management systems (TMS) and other logistics software should be updated to align with the new NMFC changes. Shippers are encouraged to coordinate with their information technology and freight auditing teams to ensure smooth data transition and compliance with the revised classification framework.
6. Train Staff and Educate Teams: Freight teams, customer service representatives and logistics personnel should be trained on the NMFC updates. Shippers may consider internal training sessions hosted by trusted partners who are experts in the field. 
7. Monitor and Adjust: After the new freight classifications are implemented on July 19, 2025, shippers would benefit from closely monitoring freight classification results and costs. Regularly reviewing freight invoices and working with carriers and 3PLs to resolve discrepancies will help ensure accurate classification and pricing.