New LTL Freight Classifications: Can You Lower Shipping Costs?

Since the National Motor Freight Classification (NMFC) changes took effect on July 19, 2025, LTL freight classification began shifting from a commodity-based system to standardized density-based classifications. A 13-tier density scale now replaces the former 11-class system, with some products rated on three or five tiers based on item descriptors. 

The National Motor Freight Traffic Association (NMFTA) explains that one goal of the NMFC changes was to modernize its system by reducing similar commodities into single items. Consolidation is leading to more consistency related to freight classification and shipment evaluation. However, if you understand changes to the less-than-truckload freight classification, you may be able to adapt to the new system and reduce the fees you pay to your carrier.

What Is the NMFC System?

The NMFC system classifies freight moving through LTL shipping networks, helping to standardize handling and pricing. It also helps carriers comply with regulations that prohibit them from transporting certain materials together or that require special handling for hazardous or fragile goods. The NMFC changes modernized and streamlined the LTL freight classification system to make it easier for shippers and carriers to use.

New NMFC Changes: Problems The Solve

In just the first few months, the 2025 NFMC changes have successfully solved long-standing problems in the shipping industry. The NMFTA points out that key changes include improving standardization, communication, pricing, and even more sustainable shipping.

Ambiguity and Misclassification

The NMFC changes create a standard language, rather than using vague language like “machine parts” or “consumer goods.” By shifting to density-based classifications, shippers and carriers have more concrete criteria, weight per volume, to determine how to load, handle, and transport items.

Overly Complex Rules

In addition to using clear language, the new LTL freight classifications include fewer commodity-based rules, clarify exceptions, and make it easy to find the correct classification using digital tools, like the NMFTA Item Lookup.

Inconsistent Carrier Billing

With a straightforward LTL freight classification system, shippers and carriers have less room for interpretation and to calculate different rates for the same shipment. Shippers also have more visibility into how carriers determine LTL pricing and can confirm the accuracy and fairness of LTL shipping costs.

Inefficient Space Utilization

The NMFC changes encourage better packing habits, rewarding (or penalizing) shippers based on the space their items occupy. Carriers are adding to their tariffs to ensure customers pay for all the space they use. They apply a height rule if the skid is not stackable, rating the shipment at 96 inches, making the customer pay for the full pallet space.

How Density-Based Classification Affects LTL Freight

With the new density-based LTL freight classification framework, shipment dimensions have more impact on the carrier evaluation process. First, carriers calculate shipment density, and, if necessary, they reclassify freight.

Shipment Density

Carriers calculate shipment density by dividing the total weight in pounds by volume in cubic feet. Note, however, that larger shipments with lower density may be categorized differently from heavier freight occupying less space, which, according to NMFTA, may help some shippers lower their costs.

Freight Reclassification

If shipment information does not match the actual freight specifications, the carrier will reclassify the shipment. Common culprits that lead to reclassification include inaccurate weight, dimensions, or item description. When discrepancies occur, shippers can see freight class changes, so consistent shipment data and documentation can help avoid reclassifications, often carrying fees of $75 to $150 per shipment, adding to LTL shipping costs. Shippers need to recognize that freight specifications and pallet details may receive closer carrier review under updated NMFC standards than they did in the past.

Why LTL Shipping Costs May Change

Since the NMFC changes, answering the question, “How does LTL pricing work?” has become essential for shippers looking for ways to control their costs. Shipment records and freight dimensions, not arbitrary or subjective LTL freight classifications, will directly affect LTL shipping costs. Beyond providing accurate documentation, shippers can help control costs by training their teams to focus on pallet density when packing shipments. In general, the more tightly items are packed, increasing the weight-to-volume ratio, the lower the freight class.

Businesses Are Paying More Attention to Freight Classification Processes

In response to closer scrutiny of shipments and the potential cost savings of focusing on pallet density, businesses are reviewing their LTL freight classification processes. Updated workflows include:

• Automated dimensioning tools and integrated scales supporting dimension and weight verification.
• More accurate internal processes for recording shipment dimensions, weight, and freight specifications.
• Comprehensive employee training on shipment requirements and evolving classification standards.
• Shipment audits and freight record reviews to help identify discrepancies before freight moves through carrier networks.
• Analytics to determine the best way to pack and ship items to minimize costs.

Optimizing Processes for LTL Freight Classification Changes

The reviews of the NMFTA’s less-than-truckload freight classification updates are positive, but businesses must still adapt to the changes to avoid discrepancies and higher costs. To move forward with the 2025 NFMC changes compliantly, businesses need to ensure consistent packing practices and more reliable shipment density calculations. Shippers can also benefit from an additional freight information review before pickup to ensure all documentation is correct. Using the same type of detailed evaluation that the carrier will use will improve consistency and minimize freight class changes.

Working with a partner experienced in negotiating pricing to ship at the lowest class to reduce costs will result in discounts and tariff waiver rules to ensure you ship most cost-efficiently under the new NMFC classifications.