Major changes to the U.S. less-than-truckload (LTL) freight classification system will take effect as of July 19, 2025. The National Motor Freight Traffic Association (NMFTA) is reclassifying over 2,000 items to density-based classes and the update will impact how rates are calculated across the industry. The NMFC has said the changes are intended to simplify the system.
During a recent webcast hosted by the Journal of Commerce, shippers expressed significant concerns regarding the potential fluctuations in rates. According to Pitt Ohio’s VP of pricing, Shawn Galloway, most bills of lading (BOLs) currently do not include enough information, making it challenging to estimate rate changes. Galloway cautioned that waiting until July to act is risky. He said reclassifications could lead to more shipment inspections, reweighing, and invoice adjustments.
The NMFTA emphasized that this shift has been planned for years but is now accelerating. “We decided long ago to make density the primary characteristic in determining freight classification, and we’d already moved 100 items to full-scale density. This year we put this transition on turbocharge,” said Keith Peterson, NMFTA’s director of operations.
Source: Journal of Commerce
At Shipco, our pricing strategy and structure are already aligned with density-based principles. We apply our freight classes based on the shipment’s density, which mitigates the risk of reclassification for the first and final mile of air and sea freight shipments. Our customers are already operating under the framework that will now be the new standard as of July 19.
