LTL Shipping Insights: Navigating the Landmark 2025 NMFC Changes
Your in-depth guide to the evolving world of LTL freight. Brought to you by the Rocket Shipping Team – Let’s Talk Logistics!
In the fast-paced world of supply chain and logistics, few updates carry as much weight as the recent overhaul of the NMFC system by the NMFTA.
Effective July 19, 2025 – just three days ago – these changes represent one of the most significant reclassifications in decades for the LTL shipping industry.
If you're a shipper, carrier, or third-party logistics provider (3PL), this isn't just regulatory fine print; it's a seismic shift that could reshape how you classify, price, and move freight.
In this edition, we'll dive deep into the LTL landscape, unpack the NMFC codes, explain the new changes in detail, and explore their potential ripple effects across the industry.
We'll also touch on breaking news, like FedEx's decision to grant shippers a grace period before enforcement. By the end, you'll have the tools to adapt and thrive. Let's get started.
What Are NMFC Codes? A Quick Expert Breakdown
Before we dissect the changes, let's set the stage with a primer on NMFC.
It is a standardized system maintained by the NMFTA, a non-profit organization founded in 1956.
It classifies over 10,000 commodities into 18 freight classes ranging from 50 (lowest cost, densest freight like bricks) to 500 (highest cost, fragile or low-density items like ping-pong balls). These classes are determined by four key factors:
Density: Pounds per cubic foot – the most critical, as denser freight is easier to handle and stack.
Stowability: How well the item fits with other cargo without wasting space.
Handling: Ease of loading/unloading, including special requirements like fragility.
Liability: Risk of damage, theft, or spoilage.
Each commodity gets an NMFC code (e.g., 156600 for "Plastic Articles") with "subs" (subdivisions) that refine the class based on specifics like packaging or density thresholds.
Carriers use these codes to calculate rates via tariffs or contracts, ensuring fairness and consistency across the industry.
Without NMFC, LTL would be chaotic – imagine debating every shipment's cost at the dock!
Historically, the system has been commodity-based, meaning classifications often hinged on what the item is rather than its physical properties.
This led to inconsistencies, disputes, and reclassifications (where carriers inspect and adjust classes, often resulting in higher bills for shippers).
Enter the 2025 updates: a bold move toward simplification and modernization.
The 2025 NMFC Changes: What's New and Why It Matters
On July 19, 2025, NMFTA's Docket 2025-1 went live, marking the culmination of years of industry feedback and planning (first announced in late 2024).
This isn't a minor tweak; it's the largest reclassification in decades, affecting thousands of items. Here's a detailed breakdown:
Key Changes in Detail
Shift to Density-Based Classification:
The old system used an 11-sub density scale for some items. Now, it's an expanded 13-sub density scale (ranging from sub 1 for densities under 1 pcf to sub 13 for 50+ pcf).
Special Item Notes and Enhancements:Over 2,000 commodities have been fully transitioned to density-based ratings, prioritizing physical characteristics over item type. For example, generic headers like "Machinery" or "Furniture" have been consolidated or redefined to reduce ambiguity.
Result: Freight class is now more directly tied to density. A 10 pcf item might drop from class 125 to 100, potentially lowering costs, while low-density items (e.g., bulky packaging) could see hikes.
Special Item Notes and Enhancements:
New notations flag items with unique challenges, such as high liability (e.g., hazardous materials) or poor stowability (e.g., oddly shaped goods). This improves safety and reduces disputes.
Packaging rules have been clarified, with emphasis on how improper packaging can bump up classes.
Consolidation and Streamlining:
Many overlapping NMFC codes have been merged, reducing the total number of entries and making lookups easier. This addresses long-standing complaints about the system's complexity, which dates back to the 1930s.
Why These Changes? The NMFTA's Rationale
The NMFTA isn't shaking things up for fun. The goal is to modernize an "outdated and overly complex" system, as stated in their official communications. Key drivers include:
Reducing Friction: Fewer reclassifications mean less back-and-forth between shippers and carriers, cutting administrative costs and delays.
Improving Accuracy and Fairness: Density focus aligns pricing with real-world handling costs, rewarding efficient packaging.
Adapting to Industry Evolution: With e-commerce booming, LTL volumes have surged, exposing NMFC's limitations. These changes aim to make LTL more competitive against parcel and TL options.
User Experience: Feedback from shippers, carriers, and 3PLs highlighted the need for simplicity, especially for small businesses without dedicated logistics teams.
In essence, it's about efficiency in a post-pandemic world where supply chains are leaner and more volatile.
Potential Impacts on the LTL Industry: Winners, Losers, and Unknowns
These changes aren't abstract – they'll ripple through operations, costs, and strategies. Let's break it down:
For Shippers
Cost Fluctuations: Density-based classes could lower rates for high-density goods (e.g., metals) but increase them for low-density ones (e.g., foam products). Early estimates suggest mixed outcomes: some shippers might save 5-10% on certain lanes, while others face hikes.
Operational Adjustments: Update bills of lading (BOLs), transportation management systems (TMS), and quoting tools immediately to avoid misclassifications and chargebacks. Poor adaptation could lead to delays or denied claims.
Opportunities: Smarter packaging (e.g., compressing goods to boost density) becomes a competitive edge.
For Carriers
Pricing and Revenue: More accurate classifications could stabilize margins, but initial enforcement might strain resources (e.g., more inspections). Larger carriers like FedEx may absorb this better than regionals.
Efficiency Gains: Reduced disputes mean faster terminal operations and better trailer utilization.
For 3PLs and Brokers
Advisory Role: 3PLs will be key in helping clients navigate changes, potentially boosting demand for their services.
Tech Integration: Tools like NMFTA's new ClassIT+ (more on this below) will be essential for real-time classification.
Broader Industry Impacts:
Market Dynamics: Could accelerate consolidation among smaller carriers unable to adapt quickly. Analysts predict a 2-5% uptick in LTL rates overall in late 2025 as the dust settles.
Sustainability Angle: Encouraging denser shipments might reduce empty miles and emissions, aligning with green logistics trends.
Risks: If not managed well, confusion could spike disputes, leading to legal headaches or strained relationships.
Early data from NMFTA suggests minimal immediate disruption, but the true test comes in Q4 2025 when volumes peak.
Current Events: FedEx Leads with a Grace Period
In a move that's music to shippers' ears, FedEx Freight announced on July 20, 2025, that it will delay enforcement of the new NMFC classifications until December 1, 2025 – giving customers about 135 days (often rounded to 150 in discussions) to prepare.
As the nation's largest LTL carrier, FedEx's decision sets a tone of flexibility, citing the need to "minimize disruption" amid the historic overhaul.
This isn't universal: Other carriers like ODFL and XPO have indicated they'll enforce from day one, though some may follow suit.
Meanwhile, the NMFTA has launched ClassIT+, an upgraded classification tool with real-time updates, density calculators, and API integrations.
Subscriptions start at $99/year, and it's already seeing high adoption. Webinars and training sessions are rolling out through November, with Docket 2025-2 slated for August 28, signaling more tweaks ahead.
Important to note that Fastclass and ClassIT (the older version) have been completely ‘sunset’ or phased out.
An interesting tidbit for those interested is that the new ClassIT+ does not allow a group email address (no shared users).
It appears that ClassIT+ (a product by NMFTA) might try to do what Netflix did in 2023- No more sharing logins!
Priced at about $149 per year for the full version, this might be a $50-75K annual budget item for the large 3PL’s in the industry (compared to $150 budget item in the past).
How to Prepare: Actionable Steps for Success
Don't wait – here's your roadmap:
Audit Your Freight: Use NMFTA's free NMFC Item Lookup Tool to check affected items.
Update Systems: Integrate ClassIT+ into your TMS or ERP.
Train Teams: Attend NMFTA webinars (e.g., the August series on density scales).
Review Contracts: Negotiate with carriers on transition terms.
Monitor Costs: Track pre- and post-change rates to quantify impacts.
Or you can contact Rocket Shipping and we will do the legwork for you!
Looking Ahead: A Brighter Future for LTL?
The 2025 NMFC changes are a bold step toward a more efficient, equitable LTL industry.
While short-term hurdles loom, the long-term payoff – fewer errors, fairer pricing, and streamlined operations – could be just what the industry needs.
As supply chains digitize and differentiation pressures mount, expect more innovations like AI-driven classification.
What do you think? Will these changes save you money, or add headaches? Reply to this newsletter or join the conversation on LinkedIn. Until next time, ship smart!