What Shippers Need to Know About NMFTA Freight Classification Changes

The National Motor Freight Traffic Association (NMFTA) is rolling out major changes to the NMFC system, set to take effect on July 19, 2025. This shift will fundamentally alter Less-Than-Truckload (LTL) pricing, moving to a standardized density scale for LTL freight when handling, stowability and liability issues are not present. Shippers need to understand these changes to avoid unexpected costs and streamline their logistics operations.

Why the Shift to Density-Based Classification?

Historically, LTL rates have been based on commodity type, leading to disputes and inconsistencies due to differences in size, weight, and handling requirements. The new density-based pricing model aims to align freight costs with actual space usage, taking advantage of modern dimensioning technology to ensure greater accuracy and equity in freight charges.

This change is driven by the need for more transparent pricing, encouraging shippers to optimize packaging and reduce wasted space. As a result, LTL pricing will now better reflect the real-world costs of transporting goods, rewarding shippers who use space efficiently while increasing costs for those who do not.

What Changes Are Coming?

• Density-Based Freight Classes
  The NMFTA is expanding the density-based classification scale, adding more granular brackets. Some denser freight will shift to a lower class and experience lower rates, while other lower-density shipments may move up resulting in higher costs.
• Elimination of Certain NMFC Codes
  Many traditional commodity-based classifications will be removed or merged, requiring shippers to provide precise measurements and accurate documentation of freight dimensions to avoid misclassification and potential surcharges.
• Carrier Re-Weighing and Reclassification
  Carriers will have more authority to reweigh and reclassify freight at pickup if the dimensions provided by the shipper do not match actual measurements. Any discrepancies could lead to unexpected charges, making accurate shipment data more critical than ever.
• Stricter Packaging Requirements
  Shippers relying on outdated classifications may see rate increases unless they adjust their packaging to fit within optimal density thresholds. Inefficient packaging could lead to higher shipping costs, while well-optimized shipments may benefit from reduced freight charges.

How This Will Affect Freight Costs

For some businesses, these changes will mean higher costs if shipments are not optimized for density. Freight rates may increase for lightweight or bulky items, and inaccurate shipment data could result in unexpected fees. Additionally, contract negotiations with carriers may need to be revisited, as FAK (Freight All Kinds) agreements could be affected by the shift to density-based classification.

However, shippers who optimize their packaging and pallet configurations stand to benefit from more predictable pricing and potential cost savings. Companies that reduce supply chain inefficiencies by better utilizing space will see a positive impact on both shipping costs and warehouse operations.

How to Prepare for the NMFTA Changes

1. Measure and Document Freight Density Accurately
   Start by implementing a density calculator to determine your shipment’s classification. Freight density is calculated using the formula:
   
   Density (lbs per cubic foot) = Total weight (lbs) ÷ Total cubic feet
   
   Williams & Associates offers a density calculator in our Compass software to help shippers prepare for the transition and see where they land in the new 13-tier classification scale.
2. Optimize Packaging and Pallet Use
   To minimize costs, shippers should focus on reducing wasted space in packaging and choosing compact materials to increase density. Where possible, consolidating smaller shipments can also help achieve lower freight classifications.
3. Review and Update Carrier Agreements
   Engaging in proactive discussions with LTL carriers about how these changes affect pricing is essential. Shippers should renegotiate contracts to account for the new density-based pricing model and align their agreements with the revised NMFC classifications.

How We Support Shippers

Williams & Associates (W&A) and Transport USA (TUSA) are committed to helping businesses navigate these changes by offering expert services, including freight audits, consulting, and digital analytics. Our team also assists in carrier negotiations to help businesses secure the best possible rates under the new pricing model.

Be Proactive

The NMFTA classification changes coming in July 2025 will significantly impact LTL pricing. Shippers who fail to prepare may face higher freight costs, while those who adapt early can secure competitive pricing and operational efficiencies.

Don’t wait! Contact Williams & Associates for expert guidance, freight density calculations, and carrier negotiations today.