The National Motor Freight Traffic Association (NMFTA) is set to make significant updates to LTL (Less-Than-Truckload) freight classifications, a change that will impact both shippers and carriers across the industry. Starting in 2025, the NMFTA will roll out a streamlined, density-focused classification model under Docket 2025-1, aiming to simplify the current system, reduce classification disputes, and create a more predictable, accurate approach to freight classification.
Here’s what you need to know about these changes—including critical dates in the transition—and how GLI can help you adapt smoothly.
What’s New in LTL Freight Classification for 2025?
The current freight classification model, which has been in place for decades, relies on four main factors: density, stowability, handling, and liability. Each of these influences a shipment’s classification and, ultimately, its shipping rate. However, the complexity of this system has often led to inconsistent interpretations and disputes over freight classes, causing inefficiencies for both shippers and carriers.
The upcoming changes will place density at the center of the classification process, grouping similar commodities based on measurable density characteristics. This move is expected to reduce ambiguity and simplify the classification process. Although density will be the primary factor, certain items that require specific handling or present higher liability will still be classified with those characteristics in mind.
The NMFTA's upcoming adjustments will transition from the current 11-class density chart, which spans classes 60 to 400, to a more comprehensive 13-tier chart, introducing classes 50 and 55. Commodities previously classified under the existing 11-tier framework will now align with this new 13-tier system. This is due to the NMFTA taking stowability into greater consideration. This shift will result in modifications to commodity codes and numbers to reflect the new classifications.
Here’s an overview of how the 13-tier density scale will be structured under the updated system:
Freight density in pounds per cubic foot
|
Freight class
|
Less than 1
|
400
|
1 but less than 2
|
300
|
2 but less than 4
|
250
|
4 but less than 6
|
175
|
6 but less than 8
|
125
|
8 but less than 10
|
100
|
10 but less than 12
|
92.5
|
12 but less than 15
|
85
|
15 but less than 22.5
|
70
|
22.5 but less than 30
|
65
|
30 but less than 35
|
60
|
35 but less than 50
|
55
|
50+
|
50
|
Critical Dates in the Process
NMFTA is working to keep shippers, carriers, and logistics providers informed through listening sessions and public resources. Here are the key dates to watch as the new classification system approaches:
- Docket Issue Date – January 30, 2025
This will be the first opportunity to review the proposed changes to Docket 2025-1.
- FCDC Public Meeting – March 4, 2025
This hearing will review the proposed changes and allow for public input on the updates.
- Supplement Effective Date – July 19, 2025
This is when the approved changes from Docket 2025-1 will officially take effect, giving the industry a few months to prepare.
Why Now? The Motivation for NMFTA’s New LTL Standards
This shift has been a long time in the making. Industry leaders have voiced the need for a simpler and more transparent system for years. The goal is to modernize the classification system, enhancing the user experience by making the NMFC easier to use and understand. With a focus on density, the new system also aims to increase efficiency, allowing for more accurate freight classification on the first try, which benefits both shippers and carriers.
What NMFC Changes Mean for Shippers and Carriers
For Shippers
These changes will likely impact shipper's pricing programs. Since freight will now be classified primarily by density, certain shipments could see adjustments in their rates—either higher or lower—based on their unique density characteristics. Shippers will need to review and potentially renegotiate their pricing agreements to ensure they’re prepared for any adjustments. GLI can step in to negotiate these pricing agreements on our clients' behalf, ensuring they secure the best possible rates under the new classification system.
For Carriers
The shift brings new responsibilities for carriers in terms of customer communication and relationship management. Explaining rate changes to customers will require transparency and a clear understanding of the new system. However, the long-term benefit will be fewer disputes over classifications, making business transactions smoother and more predictable. Having a team of logistics experts on your side, like GLI, who have access to all the detailed changes and the ability to help you navigate these updates is critical.
This change will drive LTL carriers to invest significantly in technology and personnel to inspect every Bill of Lading (BOL) and shipment, ensuring that shippers are adhering to the new rules. This shift presents a substantial revenue opportunity, as carriers will now have increased oversight and control over compliance with the updated classifications. In fact, these upcoming changes are encouraging—and shareholders are demanding—that carriers capitalize on this transformation by investing in advanced technology, equipment, and trained personnel. This is arguably the most substantial NMFC update since the inception of the classification system, marking a major pivot point in the industry.
How GLI Can Help You Navigate These Changes
With the 2025 changes approaching, it’s more important than ever to have a trusted partner to guide you through the transition. Here’s how GLI can help:
-
Expert Guidance on Classification Adjustments
Our team at GLI has deep expertise in LTL freight classifications and is closely following NMFTA’s updates. We’ll help you understand Docket 2025-1, ensuring you’re fully informed and prepared. Our goal is to minimize surprises and ensure a smooth adjustment process as the changes take effect.
- Review and Optimization of Pricing Agreements
As density-based classifications shift the way your freight is billed, GLI can work with you to review and optimize your pricing agreements. By anticipating potential changes, we help ensure that your shipping costs remain manageable, even with new classifications in place. Plus, GLI can negotiate these agreements directly on your behalf, securing favorable rates for your shipments.
- Support for Carrier Communication and Dispute Reduction
GLI’s proactive approach will assist you in managing customer relationships and preparing for conversations with carriers regarding rate adjustments. With our support, you’ll have a clear strategy for explaining changes to stakeholders, helping to reduce disputes and maintain strong business relationships.
- Ongoing Education and Resources
GLI will continue to keep you updated on the latest industry insights and provide access to NMFTA’s resources. Our commitment is to help you stay informed about any updates to the classification system, giving you the confidence to navigate the evolving LTL landscape.
Preparing for a Smoother Future in Freight Shipping
The NMFTA’s move to a density-focused classification system signals a new era for LTL shipping, one focused on simplicity, predictability, and transparency. GLI is here to support you every step of the way, from understanding and implementing these changes to maximizing your efficiency and cost savings in 2025 and beyond.
If you’re interested in learning more about the 2025 changes to LTL freight classifications and how GLI can help you adapt, contact us today. Together, we can navigate these shifts and set your business up for success in the evolving world of freight.
To learn more, watch the NMFTA Docket 2025-1: What to Expect Video.
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