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Freight Classification Changes 2025: What Shippers Need to Know
For freight shippers, understanding the National Motor Freight Classification
(NMFC) system is critical for the accuracy and efficiency of your logistics operations. In fact, the NMFC plays a vital role in determining the cost of less-than-truckload (LTL) shipping and how freight is categorized based on its key characteristics.
With major changes to the NMFC system coming in 2025, it's essential for shippers, carriers and third-party logistics (3PL) providers to prepare. In this blog, we'll break down the key changes, what they mean for your business, and how Worldwide Express can help!
How is freight class currently calculated?
Freight class is an essential element of the LTL shipping process, as it determines the shipping cost and the appropriate mode of transport for goods. To determine freight class, the system leverages several factors including:
- Density: The weight of a shipment relative to its size.
- Stowability: How easily the cargo can be loaded and stored.
- Handling: Whether the shipment requires special care due to its nature.
- Liability: The risk of damage or theft.
The National Motor Freight Traffic Association (NMFTA) is the organization responsible for managing the NMFC system. They set the rules that guide the freight classification process and ensure that the system remains up to date with current industry needs.
What are the freight class changes for 2025?
The 2025 freight class changes aim to simplify and streamline the freight classification process, making it more accurate, efficient and cost-effective for shippers, carriers and 3PL providers. Two of the most important changes include:
1. New classifications, updated commodity listings and unique identifiers
The NMFC updates will introduce new classifications for certain goods, modify existing ones and condense the list in general. This will help eliminate outdated or redundant categories, making the system easier to navigate and more relevant to modern shipping practices. Additionally, there will be "unique identifiers for freight with special handling, stowability, or liability needs," according to the NMFC website.
2. Standardized density scale
According to the NMFC website, there will be "one standard density scale when handling, stowability, and liability issues are not present. There will also be more instances where freight classes will be determined by actual shipment density." Density has always been a key factor in freight class, but the new standardized scale will make density even more significant in classification determination for certain freight shipments.
"The 2025 updates to the NMFC freight class system aim to improve transparency and consistency, ultimately reducing shipping costs and administrative burdens for both shippers and carriers."
— Mike Grayson, WWEX Group CRO & EVP
"We are committed to helping our clients navigate the transition to the new NMFC system, offering personalized solutions to ensure a smooth and efficient implementation. Working with a 3PL like Worldwide Express just makes sense at a time when there are exciting changes to the freight class system."
— Mike Grayson, WWEX Group CRO & EVP
Need help understanding the freight class changes? WWEX Group can help!
Understanding the upcoming NMFC freight class changes for 2025 is crucial for shippers looking to maintain cost-effective and efficient shipping practices. By staying informed and leveraging our expert advice and technology, you can ensure a smooth transition to the new system.
Stay tuned for more content in the coming months, where we will continue to provide insights and guidance on how to successfully navigate the NMFC updates. If you need assistance or have questions, don't hesitate to reach out to WWEX Group for support during this transition!