The Evolution of LTL: Navigating the NMFTA's 2025 Freight Classification Overhaul

The world of Less-than-Truckload (LTL) shipping is on the cusp of a significant transformation. The National Motor Freight Traffic Association (NMFTA) is rolling out major updates to the National Motor Freight Classification (NMFC) system, marking a pivotal evolution designed to modernize classification, enhance pricing accuracy, and boost operational transparency. For transportation and logistics professionals, understanding these changes isn't just about compliance; it's about optimizing strategies and preparing for a more streamlined future.

What's Happening and the Timeline

At the heart of the upcoming changes is a fundamental shift in how freight is classified. Effective July 19, 2025, the first phase of these updates, known as Docket 2025-1, will primarily move away from a traditional commodity-based classification system to a more density-driven model. This will be followed by Docket 2025-2 around August 28, 2025, which is expected to introduce further refinements and item cancellations.

Here's a breakdown of the key changes:

• Shift to Density-Based Classification: For most goods that don't require special handling, stowability, or have unique liability concerns, classification will now be based almost entirely on density. This means the weight per cubic foot will be the primary determinant. The new system expands to 13 density tiers, introducing new Classes 50 and 55 to offer more precise pricing for denser freight.
• Consolidation and Modernization of Commodity Listings: Thousands of existing NMFC items are being grouped or updated, significantly streamlining the classification process. This aims to reduce ambiguity and make it easier to find the appropriate classification.
• Unique Flags for Special Handling/Stowability/Liability: To ensure critical information is readily available, enhanced identifiers will be introduced to call out shipments requiring special handling, with unique stowability considerations, or those carrying increased liability risks. These flags will work in conjunction with the density-based class.
• Updated ClassIT Platform (ClassIT+) with a New API: To facilitate these changes, the NMFTA is launching an upgraded ClassIT+ platform, complete with a new API, expected to be available in early to mid-July. This will enable real-time NMFC data access, crucial for accurate quoting and automated processes.

Key Dates to Remember:

• March 2025: Disposition of Docket 2025-1 published, detailing final decisions on proposed changes.
• April 22, 2025: Launch of a free NMFC Item Lookup Tool to help stakeholders see if their current freight codes will change.
• Early/Mid July 2025: ClassIT+ platform with new API becomes available.
• July 19, 2025: Go-live date for Phase 1 (Docket 2025-1) of the changes.
• Around August 28, 2025: Tentative release of Docket 2025-2.
  
  

Impacts and Benefits for Customers

These changes will undoubtedly have a ripple effect across the transportation and logistics ecosystem.

For Shippers:

• Necessity for Audit and Update: Shippers will need to thoroughly audit and update their Transportation Management Systems (TMS), Warehouse Management Systems (WMS), and Bills of Lading (BOL) data to reflect the new classifications.
• Refined Dimension and Weight Processes: Accurate dimensioning and weighing of shipments become more critical than ever. This is paramount to avoiding misclassification, which can lead to costly delays, unexpected tariffs, and billing disputes.
• Team Training: Comprehensive training for logistics and shipping teams on the new classification methodology and tools is essential for a smooth transition.

For Carriers and 3PLs:

• System and Workflow Alignment: Carriers and Third-Party Logistics providers (3PLs) must align their internal systems and workflows with the new API and classification processes to maintain efficiency and accuracy in quoting and operations.
• Proactive Communication: Communicating effectively with shippers about the upcoming changes and offering guidance will be key to minimizing disruptions and maintaining strong partnerships.

Benefits for All Parties:

While the immediate impact necessitates adaptation, the long-term benefits are substantial. The NMFTA's goal is to create a more transparent, accurate, and efficient freight classification system.

• Increased Pricing Accuracy: The move to density-based classification for many items will lead to more precise pricing, aligning costs more closely with the actual transportation characteristics of the freight. This can reduce unexpected charges and improve budgeting.
• Reduced Misclassification and Disputes: With clearer guidelines and streamlined commodity listings, the likelihood of misclassification and subsequent billing disputes should decrease, fostering smoother transactions.
• Streamlined Operations: The modernized system, coupled with enhanced digital tools like ClassIT+, promises to simplify the classification process, saving time and administrative burden for all stakeholders.
• Improved Transparency: The new identifiers for special handling and the focus on measurable characteristics will enhance transparency throughout the supply chain, allowing for better planning and execution.

To prepare for these changes, all parties should proactively leverage the NMFTA's resources, including the free NMFC Item Lookup Tool, attending webinars, and participating in "Ask Us Anything" sessions for clarity and guidance.

5 FAQs About the Upcoming NMFTA Freight Classification Changes

The NMFTA is modernizing the NMFC system to improve pricing accuracy, enhance operational transparency, and simplify the classification process. The previous system had become complex and outdated, and the new changes aim to better reflect current shipping practices and reduce ambiguity.

If your freight is dense (heavy for its volume), you might see lower freight classes and potentially lower costs. Conversely, lightweight but bulky freight could be assigned higher classes, leading to increased costs. Accurate measurement of weight and dimensions will be crucial.

The NMFC Item Lookup Tool, launched on April 22, 2025, is a free resource provided by the NMFTA that allows you to see if your current freight codes will change under the new system. You can access it via the NMFTA's official website, specifically their 2025 NMFC changes information page.

While density will become the primary factor for many items, special handling requirements, stowability (how easily the freight can be loaded and stored with other items), and liability (the risk of damage or theft) will continue to play a role and will be indicated by new, unique identifiers.

ClassIT+ is the updated version of the NMFTA's online classification tool. It will feature a new API, allowing for real-time NMFC data access. This enhanced platform will make it easier and faster to accurately classify freight, helping to prevent misclassifications, reduce disputes, and streamline quoting and billing processes.

Prepare for the 2025 NMFC Changes with ODW Logistics

The NMFTA’s new density-based freight classification system goes live soon. Being unprepared could lead to misclassifications, delays, and unexpected costs.

ODW Logistics provides expert guidance to help shippers and 3PLs audit systems, update processes, and ensure a smooth transition to the new NMFC standards.

Contact us today to schedule a consultation and learn how ODW can support your team through the 2025 freight classification changes.