The National Motor Freight Traffic Association (NMFTA) is leading a transformative initiative called “Classification Reimagined” to modernize the National Motor Freight Classification (NMFC) system. This update addresses the evolving needs of less-than-truckload (LTL) freight transportation, driven by changes in products, technological advancements, and shifting industry practices. Scheduled for implementation in 2025, the new system aims to enhance user experience, improve accuracy, and streamline collaboration between carriers, shippers, and 3PLs, creating a more efficient and effective freight classification process. 

Why are the NMFC changes taking place in 2025? 

The 2025 updates to the NMFC are designed to reflect current industry practices, technological advancements, and safety standards. As freight logistics evolve, it’s important for the system to stay relevant and accurate. These changes aim to make freight classification clearer, more consistent, and better aligned with the modern landscape of shipping. 

What does this mean? 

For shippers, the revised freight classifications will bring changes to how certain products are categorized, potentially impacting pricing and shipping methods. Adapting to these adjustments is essential to avoid unexpected costs or delays. By understanding the new rules and proactively updating your processes, you can ensure a smooth transition and maintain efficiency in your shipping operations. 

Why are these changes a good thing? 

These updates bring significant advantages to the freight industry by creating a more accurate and equitable classification system. By aligning shipping costs with the true characteristics of products, rather than outdated classifications, the changes promote fairer pricing. This, in turn, fosters more predictable costs and streamlined operations for both shippers and carriers. 

How can shippers prepare for these NMFC changes? 

Preparation is essential. Start by reviewing your current freight classifications and understanding how the updates may affect them. Ensure your product data is accurate and up to date, and work with your logistics team to confirm compliance. Technology, like automated classification systems, can simplify the transition and improve efficiency, helping you adapt seamlessly to the new standards. 

Change is beneficial for carriers 

For carriers, these updates bring greater clarity and consistency to the process. Clearer classifications reduce confusion, leading to faster and more accurate pricing. Enhanced precision promotes operational efficiency, paving the way for better service quality and potentially lower costs for stakeholders. 

How automation helps manage the transition 

Automation can play a pivotal role in helping companies adapt to the operational changes brought by the NMFTA’s revised freight classification system. Here's how automation can support carriers, shippers, and 3PLs in adjusting to the new requirements:

Enhanced Data Accuracy and Compliance

• Automated Dimensioning Systems: Use automated dimensioning tools like cubing and weighing systems to accurately measure the dimensions and weight of freight. This ensures compliance with the new density-based classification standards.
• Integrated Freight Management Systems: Automated systems can seamlessly incorporate updated NMFC classifications into their workflows, reducing errors in freight class identification.

Improved Operational Efficiency

• Warehouse Management Systems (WMS): Modern WMS solutions can optimize storage and handling for freight with updated classifications. For example, automated storage and retrieval systems (ASRS) can adapt to changing storage needs based on new class density scales. 
• Real-Time Data Synchronization: Automation ensures that any changes to shipment data, such as freight class updates, are instantly communicated between carriers, shippers, and 3PLs, minimizing delays and miscommunication.
  

Streamlined Workflow Adjustments

• E-BOL Automation: Electronic bill of lading (eBOL) systems can automatically populate and validate classification data, incorporating new requirements like handling unit dimensions. 
• Automated Freight Class Calculators: Tools can calculate freight class based on the updated density scale, saving time and reducing manual errors.
  

Training and Knowledge Sharing

• Interactive Learning Platforms: Automated training tools, such as learning management systems (LMS), can quickly educate employees and stakeholders about the new classification standards. 
• AI-Driven Support Systems: Chatbots and virtual assistants can provide real-time guidance on classifying shipments or using new processes. 

Enhanced Visibility and Tracking

• Integrated TMS (Transportation Management Systems): Automated TMS solutions can adapt to new classifications, providing better visibility into shipment status, costs, and compliance across the supply chain. 
  
• IoT and Sensors: Sensors on handling equipment can monitor and report on shipment weight and dimensions, ensuring consistency with updated standards.
  

Cost and Risk Reduction

• Automated Freight Auditing: Systems can audit shipments for correct classification, reducing disputes, reclassifications, and additional fees.
• Predictive Analytics: Automation can analyze shipment data to predict potential issues or cost impacts of the classification changes, enabling proactive adjustments. 

By leveraging automation, companies can efficiently manage the transition to the updated NMFC system, ensuring compliance, maintaining productivity, and minimizing disruptions. For businesses in logistics, adopting these technologies is an investment in long-term resilience and competitiveness.