Home » Major Overhaul of U.S. LTL Freight Classification Underway | #ShipcoViewpoint

Major Overhaul of U.S. LTL Freight Classification Underway | #ShipcoViewpoint

The U.S. less-than-truckload (LTL) freight classification system is undergoing the most significant overhaul of its nearly 90-year-old rating system, and shippers are concerned about potential cost increases in their LTL pricing.

The National Motor Freight Traffic Association (NMFTA), a nonprofit trade organization responsible for managing the National Motor Freight Classification (NMFC), explains that the changes are intended to simplify the system.

The new classification will standardize density scales, reduce the number of product listings, and introduce unique identifiers for freight that requires special handling. Keith Peterson, the director of operations at NMFTA, noted that shippers will need to measure pallet dimensions more precisely.

NMFTA will begin assessing feedback on February 25, followed by a public meeting on March 3. The final changes are expected to become effective on July 19 and will impact virtually everyone shipping LTL freight in the U.S.

Source: Journal of Commerce

Shipco’s customers will not be impacted by the changes in freight classification by the NMFTA due to our unique pricing strategy. Our pricing structure is designed for the first and final mile of our air and sea freight shipments. We use technology to determine the freight classification based on the cargo’s density. Our approach offers a more transparent and consistent pricing system by aligning shipping costs with the actual space and weight a shipment occupies.