The less-than-truckload (LTL) industry is approaching a significant update to its freight classification system, with the National Motor Freight Traffic Association (NMFTA) announcing changes to the National Motor Freight Classification (NMFC) system, set to be published next Thursday, February 6th . They aim to simplify the current system by combining similar items together and moving most classes based on their density. These changes will impact transportation providers, trucking fleets, third-party logistics providers (3PLs), and freight brokers. The plan is to make the logistics process more efficient and reduce friction between shippers and carriers.
The current system categorizes freight into 18 classes based on factors like density and handling characteristics. Sometimes this can lead to confusion and disagreement. At the Jump Start 25 supply chain conference in Atlanta, NMFTA representatives explained that the new system will streamline classification by standardizing density scales. New unique identifiers will be added for special handling needs, commodity listings will be modernized, and usability of the Class IT tool will be improved.
Once the updates take effect later in the year, you will see the changes in the LTL prices. The reclassification of the freight will have a transition period where the NMFTA will seek industry feedback on the changes, followed by a public meetings for discussion. The changes are expected to be implemented by July 19th. Businesses in the Transport LTL industry need to prepare for the adjustments and review their pricing agreements accordingly.
With such changes soon coming, we have a Transport focused SBA Program which will assist your needs for the modifications in the truck class changes.
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