What does a shipper need to know about the upcoming changes to SMC3’s National Motor Freight Classification (NMFC) changes in July 2025? As the National Motor Freight Traffic Association (NMFTA) overhauls the NMFC system, effective July 19, 2025, less-than-truckload (LTL) shippers who remain on class tariffs will see significant shifts in the freight classification which in turn impact base rates and penalties for non-compliance. CPC Consultants summarizes the top 10 changes. Lastly, CPC will offer up an alternative to class pricing which eliminates the costly subscriptions and NMFC complexity, ensuring cost optimization and transparency.
The 2025 NMFC changes, part of Docket 2025-1, aims to simplify a outdated and historically complex system and focus on the density portion of classification. Currently classifications balance three attributes: Density, stow ability and the liability.
Top 10 Changes to NMFC Rules:
- Expanded Density Scale: Transitions from an 11-tier to a 13-tier density scale, adding 50 and 55 for additional classifications.
- Density-Based Focus: Over 2,000 commodities shift to density-only classification.
- Consolidated Listings: Reduces 5,000+ commodity listings to a streamlined set, merging similar items to cut misclassification risks.
- Unique Identifiers: Introduces flags for freight requiring special handling, stow ability, or liability precautions, enhancing transparency.
- Updated ClassIT Tool: Relaunches ClassIT with automation and user-friendly features, updating on July 19, 2025, for accurate classifications.
- Mandatory Dimensions: Shippers must provide exact length, width, height, and weight on Bills of Lading.
- Lower Classes for Dense Freight: Denser (heavier and compact) freight may qualify for lower classes, potentially reducing rates.
- Higher Classes for Bulky Freight: Lighter weight and voluminous freight will face higher classes and increasing costs (up to 10% for some shipments).
- Phased Implementation: Docket 2025-1 is phase one, with further changes (Docket 2025-2) expected August 28, 2025.
- Disposition Bulletin: Final changes published May 10, 2025, detail reclassifications; shippers must align systems by July 19.
The aim of these changes is to simplify classification, but challenges to shippers remain with the new density calculations and compliance risks. Misclassifications could trigger delays or fees, with 15% of LTL shipments historically reclassified. Shippers must now audit commodity classifications, train teams, and update Transportation Management Systems (TMS) to align with the new 13-tier scale. This leads to costly delays in the near future.
The CPC Alternative
For the last 27 years, CPC Consultants has secured a simpler pricing program called, “Cost-per-pound. ” This approach blows up the class-based tariff system, which was created in 1933 to regulate and protect trucking companies. In 1980, the transportation industry was deregulated and allowed Shippers and Carriers to negotiate pricing on a level playing field. On average, CPC’s strategy, which is generally accepted by LTL carriers, save clients on average 30%. In addition, auditing is simplified and there is no need for post auditing of billing errors. Contact CPC Consultants for an assessment and explore our cost-per-pound method to simplify your LTL shipping today. Now is the best time to partner with CPC Consultants to ensure a seamless transition, leveraging our expertise to stabilize costs, and do away with the class-based system all together.