NMFTA's Major Classification Update: Navigating LTL Changes

The less-than-truckload (LTL) sector is undergoing a transformative shift with the National Motor Freight Traffic Association (NMFTA) announcing the “successful implementation” of one of the most significant updates to the National Motor Freight Classification (NMFC) system in its nearly 90-year history.

Despite FedEx Freight, the largest LTL carrier, delaying its adoption until December 1, 2025, the changes are gaining traction across the industry. At Gain Consulting, we’re exploring what this landmark update means for shippers and how to adapt to the evolving LTL landscape.

Understanding the NMFC Update

The NMFC system, a cornerstone of LTL freight pricing, standardizes how commodities are classified based on factors like density, stowability, handling, and liability. The recent update represents a major overhaul, aiming to modernize classifications to reflect current shipping realities, such as changes in packaging, product dimensions, and transportation technology. While specific details of the changes are not outlined, the NMFTA’s emphasis on their significance suggests adjustments to classification codes, density thresholds, or handling requirements that could impact freight costs and logistics planning.

FedEx Freight’s decision to delay implementation until December 1 provides shippers with a brief window to prepare, but the broader industry’s acceptance signals that these changes are already reshaping LTL operations. The NMFTA’s confidence in the update’s success indicates strong adoption by other major carriers, which could lead to more consistent pricing and classification practices across the market.

Why This Matters for Shippers

The NMFC update could significantly affect shipping costs, carrier negotiations, and supply chain efficiency. Key implications include:

• Cost Adjustments: Revised classifications may alter freight class assignments, potentially increasing or decreasing shipping rates depending on the commodity’s new classification. For example, changes in density-based classifications could result in higher costs for low-density, high-volume shipments.

• Operational Planning: Shippers must review their product classifications to ensure compliance with the new NMFC standards, as misclassifications could lead to billing disputes or unexpected surcharges.

• Carrier Variability: With FedEx Freight delaying implementation, shippers using multiple carriers may face inconsistencies in pricing and classification until December, requiring careful contract management.

These changes come at a time when LTL carriers are already adjusting rates, as seen with ArcBest’s 5.9% rate increase in August 2025, adding further pressure on shippers to optimize their freight strategies.

Strategic Implications for Your Business

To navigate the NMFC changes effectively, Gain Consulting recommends the following strategies:

• Review Freight Classifications: Audit your current shipments to ensure compliance with the updated NMFC codes. Work with carriers to understand how the changes affect your commodity classifications and pricing.

• Optimize Packaging: Adjust packaging to align with new density or handling requirements, potentially lowering freight class assignments and reducing costs.

• Leverage Technology: Use transportation management systems (TMS) to automate classification updates and monitor billing accuracy, minimizing errors and disputes.

• Negotiate with Carriers: Engage with carriers, including those adopting the changes early, to secure favorable terms. For FedEx Freight users, use the delay to negotiate transitional pricing or prepare for December’s implementation.

• Monitor Industry Trends: Stay informed about how other carriers adopt the NMFC changes and how they impact lane-specific pricing, especially in a market expecting recovery in the next six months.

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How Gain Consulting Can Help

At Gain Consulting, we specialize in helping businesses adapt to complex LTL market changes. Our team can conduct a comprehensive freight audit, optimize your packaging and classification strategies, and negotiate with carriers to minimize the financial impact of the NMFC update. Whether you’re adjusting to new classifications or preparing for broader market shifts, we’re here to ensure your supply chain remains efficient and cost-effective.

Looking Ahead

The NMFTA’s landmark NMFC update marks a pivotal moment for the LTL industry, promising greater standardization but also introducing new challenges for shippers. With FedEx Freight’s delayed adoption until December 1, 2025, businesses have a brief opportunity to prepare for the transition. By acting proactively, you can turn these changes into an opportunity to optimize your logistics operations.

Contact Gain Consulting today to learn how we can help you navigate the NMFC update and thrive in the evolving LTL market.

Source: John Schulz, Logistics Management, August 13, 2025