Preparing for LTL Class Changes in 2025 | Red Arrow Logistics

The National Motor Freight Traffic Association (NMFTA) is set to introduce significant changes to the freight classification system in 2025, particularly for commodities where density is the primary freight characteristic. These updates aim to streamline the classification process, ensuring more accurate freight pricing and improved cost efficiency for Less-Than-Truckload (LTL) shipments. For businesses that rely on LTL shipping, understanding these changes and preparing accordingly will be crucial to maintaining a competitive edge.

What Are LTL Classifications?

LTL freight classifications are determined by the NMFTA and are used to establish shipping rates based on a commodity’s characteristics. Traditionally, these classifications are based on four key factors:

  • Density (weight-to-volume ratio)

  • Stowability (ease of storage and transport)

  • Handling (special requirements or difficulty in transportation)

  • Liability (risk of damage or theft)

With the upcoming changes, density will play an even more significant role in classification for certain commodities, moving toward a standardized approach that improves pricing accuracy.

 

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Key Changes Coming in 2025

  • Greater Emphasis on Density: The NMFTA is expanding the use of density-based classifications, meaning products that vary in weight and size will be classified more precisely. This will help eliminate inconsistencies in pricing.

  • A Wider Class System: The updated framework introduces more classification levels, allowing for a more tailored pricing model that reflects actual shipping costs more accurately.

  • Improved Cost Efficiency: Shippers may see cost savings if their freight is classified more accurately, avoiding unnecessary overcharges due to outdated or rigid classifications.

How Businesses Can Prepare

  1. Review Your Current Freight Classifications
    Conduct an audit of your existing classifications to determine how they may be impacted by the upcoming changes.

  2. Evaluate Density Calculations
    Ensure that your team accurately calculates and records density for your shipments, as this will be a primary factor in determining freight class.

  3. Work with Your Logistics Provider
    Partnering with an experienced logistics provider like Red Arrow Logistics can help you navigate the changes, ensuring that your freight is classified correctly and cost-effectively.

  4. Update Shipping Documentation
    Proper documentation, including Bill of Lading (BOL) details and product specifications, should reflect the new classification requirements.

  5. Monitor Cost Impacts
    Keep track of how these changes affect your freight costs and adjust your logistics strategy as needed to maintain cost efficiency.

Your Trusted Partner

At Red Arrow Logistics, we stay ahead of industry changes so our clients can focus on their business operations. Our team is ready to assist with navigating the 2025 LTL classification updates, ensuring that your shipments are optimized for cost and efficiency.

Want to learn how these changes will impact your freight costs? Contact Red Arrow Logistics today to prepare your business for the 2025 LTL class updates.

Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914.