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.

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Shippers may see cost savings if their freight is classified more accurately, avoiding unnecessary overcharges due to outdated or rigid classifications.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