What’s Next for LTL Pricing? Automation, AI, and the End of Freight Class
As the LTL industry moves further into the future, the freight class model continues to lose relevance. What’s replacing it? A mix of automation, AI-driven pricing, and real-time data validation. This transformation will affect how SMBs quote, prepare, and ship their freight.
Let’s explore what’s ahead and how to prepare.
1. The End of Freight Class as a Standard
Many carriers have already started phasing out NMFC codes in favor of dimensional pricing. According to FreightWaves, the shift toward density-based pricing is being driven by the need for more accurate billing and better trailer utilization.* Carriers want simpler, more consistent pricing—and freight class, with its complexity and disputes, doesn’t support that.
What to Expect:
- Some carriers may fully eliminate freight class by 2026.
- Hybrid systems may persist temporarily, especially for contract customers.
- The NMFC system will likely remain for regulatory and insurance purposes, but not rate-making.
2. AI and Machine Learning in LTL Pricing
AI is already playing a role in dynamic pricing models—similar to how airlines adjust fares in real time. Carriers are leveraging machine learning to factor in lane-specific demand, trailer space utilization, and even weather data to generate pricing.
Implications for SMBs:
- Expect more price variability by day or lane.
- Benchmarking across carriers will be harder without tools.
- AI can reward shippers with predictable, dense freight.
3. Automation in Freight Auditing and Rating
Automated dimensioners now capture freight specs at scale. In the near future, billing audits and pricing adjustments will become instantaneous, reducing disputes but also removing negotiation flexibility.
Tech on the Rise:
- Terminal-based 3D scanners
- Real-time rating APIs
- Automatic invoice validation tools
4. The Rise of Digital Freight Networks
Digital freight platforms are enabling greater load sharing and trailer optimization using real-time data. These systems align perfectly with density-based pricing by maximizing load efficiency across carriers.
Examples:
- Some digital freight networks and 3PL-managed platforms are expanding LTL capabilities through load consolidation and shared trailer space.
- Many TMS platforms now offer direct integration with real-time dimensioning and rating tools.
5. What SMBs Should Do Now
To stay competitive as these changes unfold:
- Audit packaging and shipment data regularly
- Use TMS tools that integrate with dimensioning and rate engines
- Partner with carriers and 3PLs who embrace automation
Amware helps SMBs future-proof their shipping strategies with technology, training, and tailored logistics support.
The future of LTL is smarter, faster, and driven by data. By preparing now, SMBs can avoid cost spikes and position themselves as preferred shippers in an increasingly tech-driven environment.
*Source: FreightWaves, "How Dimensional Pricing Is Reshaping LTL Shipping," 2024. https://www.freightwaves.com/news/dimensional-pricing-reshapes-ltl