What the July 2025 NMFC Changes Mean for LTL Shippers
What Is Changing?
Starting July 2025, the National Motor Freight Traffic Association (NMFTA) is introducing changes to the National Motor Freight Classification (NMFC) system that will impact how many LTL carriers price and classify shipments.
While not a legal or federal regulatory shift, these NMFC updates function as quasi-regulatory standards for most carriers. If your freight is non-compliant, you may face reclassification fees, billing disputes, or even delivery rejections.
Key changes include:
- Expanded use of density-based classification (cubic feet per pound)
- Elimination or consolidation of certain freight classes
- Higher scrutiny of declared dimensions vs. actual measured dimensions
This means more carriers will default to using dimensional data over subjective class designations.
Why Is This Happening?
The NMFTA’s goal is to simplify classification, reduce disputes, and bring more consistency to LTL pricing.
As LTL networks modernize, carriers are increasingly equipped with dimensioners and automated rating tools. The shift toward density-based pricing enables:
- More accurate cost alignment (space used = cost paid)
- Fewer classification disputes
- Incentives for packaging efficiency
The July changes are a reflection of these broader industry trends, aligning NMFC guidelines with what’s already happening in practice at many terminals.
Who Is Affected?
All LTL shippers will be affected, but the impact will be greatest for:
- SMBs shipping low-density or irregularly shaped freight
- Companies using outdated class-based quoting or labeling
- Warehouses without integrated measurement tools
Third-party logistics providers (3PLs) and TMS platforms will also need to ensure compliance in quoting and audit practices.
When Does It Go Into Effect?
The updates are scheduled to go into effect July 13, 2025. However, some carriers may begin enforcing aspects of the new standards earlier through internal rule tariffs or hybrid pricing logic.
Shippers should start preparing immediately by auditing their top freight lanes and assessing packaging practices.
Where Does This Apply?
The NMFC is used throughout North America for domestic and cross-border LTL freight. While technically voluntary, most U.S. and Canadian carriers abide by NMFTA classification standards and use them to calculate pricing.
How Should SMBs Prepare?
1. Audit Packaging and Dimensions:
Ensure that what you're declaring matches what's being scanned at the dock.
2. Adopt or Integrate Dimensioning Tools:
Even handheld or mobile solutions can help avoid reclass fees.
3. Talk to Your 3PL or Carrier Now:
Ask how they’re handling the NMFC shift and what compliance measures they expect.
4. Update Rate Quoting Processes:
Make sure your TMS or quoting tool reflects the new density tiers and class eliminations.
5. Train Your Warehouse Team:
Pick, pack, and label accuracy matters more than ever under the new model.
The July 2025 NMFC changes are not technically government regulations—but they will feel regulatory in practice. For SMB shippers, this is a major moment to audit, adapt, and align operations with how LTL pricing is actually being applied in today’s freight environment.
Working with a partner like Amware ensures you're not caught off guard. From packaging audits to TMS visibility, we help our clients stay ahead of classification changes and freight billing pitfalls.