While the overhaul of the National Motor Freight Classification (NMFC) system is designed to make LTL shipping easier, as with any major revisions, there is a learning curve for shippers, carriers, and freight brokers.
But getting up to speed quickly is essential, as the National Motor Freight Traffic Association (NMFTA) said in LTL shipping, “accuracy is everything. Misclassified freight doesn’t just cause small hiccups — it can derail profits, damage customer relationships, and drain time and resources from every part of your logistics operation.”
Understanding LTL Classification
The NMFC system has been in place since 1935, the year the Motor Carrier Act regulating the trucking industry was adopted. Much of what LTL carriers haul today wasn’t even invented in 1935.
The classification system was designed as a way to “establish a commodity’s transportability.” Key factors determining freight class are density, handling, liability, and stowability.
- Weight and dimensions determine an item’s density. The higher the density, the lower the class — and the lower the shipping cost.
- Dimensions, fragility, and packaging all contribute to the difficulty of handling an item during loading and unloading from LTL terminals.
- Liability takes into account the probability of the LTL shipment being damaged — or damaging other freight in the truck — as well as the perishability or possibility of theft.
- Stowability refers to how an LTL shipment can be arranged with other freight in the truck. By categorizing items based on characteristics like size and weight, carriers can efficiently stack and organize shipments within trailers.
Misclassification of LTL freight can result in reclassification fees, shipment delays, and lost revenue. And misclassification isn’t a rare occurrence. It happens frequently because of the classification system’s intricacies and lack of understanding.
The NMFTA granted the system was complex and outdated. It calls the reclassification, which took effect July 19, a “reimagination” and said it will:
- Simplify the NMFC by adopting a standardized approach that considers density, handling, stowability, and liability.
- Enhance the user experience by making the NMFC easier to understand.
- Increase efficiency by making freight classification more accurate on the first try.
Be Ready for NMFC Changes
The NMFTA said the NMFC changes “will fundamentally impact how freight is classified, rated, and billed.”
The NMFTA summarized the changes as:
- A standardized density scale for LTL freight with no handling, stowability, and liability issues.
- Unique identifiers for freight with special handling, stowability, or liability needs.
- Condensed and modernized commodity listing.
- Improved usability of the ClassIT classification tool.
The NMFTA warned shippers that if their classification methods are outdated, they could face unexpected freight charges, miscommunication with carriers and 3PLs, and shipment delays caused by reclassifications and inspections.
But the classification changes will affect all parties involved in LTL shipping. Carriers will need to identify freight density, adjust internal policies, and be aware that the new class structures could change how they bill certain freight. For 3PLs, the freight classification process will be “more precise,” the NMFTA said.
“For 3PLs managing LTL shipments, this means access to the latest freight data, updated classification details, and clear communication with shippers and carriers will be key to ensuring smooth transactions and accurate rating,” it said.
With the data used to classify LTL freight changing, 3PLs’ rating engines, transportation management systems, and classification workflows will need to reflect these revisions, the NMFTA advised.
“Shippers will rely on 3PLs for guidance — having the right information at your fingertips will keep operations moving smoothly,” it said. “Carrier and shipper collaboration will benefit from more transparent and up-to-date classifications.”
How Software Can Make Classification Easier
A headline on the NMFTA website asks: “Is your freight classification process ready?”
The answer is yes if you have the right software in place.
The NMFTA advised 3PLs to:
- Review their LTL classifications immediately.
- Integrate the latest NMFC data into their TMSs.
- Provide clear, consistent information to shippers while ensuring smooth transactions with carriers.
- Make sure all employers understand the classification changes to ensure fast, accurate, and confident quoting.
Logistics providers can check off everything on NMFTA’s list with top-of-the-line freight broker software. Drumkit’s AI-driven software analyzes freight attributes and ensures accurate classification with automated data entry. With Drumkit, LTL freight brokers can automatically stay on top of all NMFC regulations.
Drumkit is a Freight Classification Game-Changer
The NMFTA recognized the learning curve with the new classification system could be steep, and in its commitment “to make the transition smooth” has been emailing resources, tips, tools, and updates to newsletter subscribers.
Drumkit ensures a smooth transition by implementing our freight broker software, which seamlessly integrates with existing systems. Our software integrates directly into freight brokers’ email inboxes and TMSs, automating workflows with AI.
With Drumkit, freight brokers can automate LTL rate quotes, load scheduling, and track and trace. Our Intelligent Sidebar empowers freight brokers to see all LTL load information across platforms in one place, and our AI-powered tracking provides real-time shipment updates without constant check-ins.
See for yourself. Book an introductory call today.
