Freight Expectations Blog

Upcoming NMFC Updates Will Change Your LTL Shipping in 2025

Written by Rebecca Jasch | Jul 12, 2024 10:36:26 PM

Change is on the horizon for the logistics industry as we think about 2025 and beyond. Within the most recent NMFTA meeting, the committee has published plans to begin transitioning the NMFC system into a single-density scale. These changes will act as a catalyst to improve the freight classification user experience and boost efficiency for shippers, 3PLs, and carriers.

What's Changing?

The core NMFC changes coming out in 2025 will be based on four key factors:

  • Density: How much space does the freight take up?
  • Handling: Is the freight easy or difficult to handle?
  • Stowability: How well can the freight be stowed or stacked?
  • Liability: What risks are associated with handling, including value and hazard?

Impact on Carriers and Shippers

Each group within the LTL shipping ecosystem will feel the effects of these changes differently. Here's how:

For Shippers

Shippers will have an easier time identifying NMFC items and freight classes through these changes. For example, heavier freight that is currently classified in a higher class will benefit from being re-categorized into a lower class based on density.

However, these changes will also require extra details when preparing LTL shipments. When submitting a rate quote, you’ll need to know accurate dimensions and the weight of your freight. This attention to detail will also ensure that the invoice you receive at the end matches your original quote, as opposed to having your freight re-classified at the terminal and then changing the cost of transit.

MyCarrier was built to support dimensions and even recommends a density class when you run a rate quote, making it easy to adapt to these changes. When this information is sent over to carriers during dispatch, it also creates a bill of lading, simplifying the document creation and improving accuracy.

For Carriers

Carriers can look forward to a simpler classification process with one standard density scale for freight without handling, stowability, or liability issues. Additionally, it will become easier to identify commodities with handling requirements or complex liabilities based on where they fall into the density scale.

Carriers will also begin requiring unit dimensions and weight when accepting a shipment in order to complete the bill of lading. By committing to this level of detail on both the shipper and carrier level, both parties will embrace the changes from the NMFTA, supporting the transition towards a simpler pricing scale.

Example Difference in Classes

 

Other Industry Impacts

Shippers who aren’t already dimensioning their freight will begin adjusting their behaviors to build this into their shipping operations. Additionally, by requiring more accurate information on the bill of lading, these changes will also improve the accuracy of freight bills. The output of this will result in less variances when you compare your quote to invoice. It will also drive time savings for the carriers because more accurate information will drive down the extra re-weighs needed.

How MyCarrier Can Help

MyCarrier's quote flow has always included fields that transmit the dimensions, NMFC class, sub classes, and weight over to the carrier you're dispatching with. With MyInvoiceHub, you’ll also be able to pull invoices electronically and produce a quote vs. invoiced comparison, creating a single source of financial truth. Our platform helps you maintain your records and submit all, of the information needed to accurately ship your goods, giving you the simplicity and control needed to manage these changes.

For specific details beyond these summarized details, we recommend visiting the NMFTA's landing page surrounding these changes or keep an eye out for Docket 2025-1 being released on January 30th, with the actual changes going into effective May 30th, 2025.