Dive Brief:
- The first phase of a National Motor Freight Classification overhaul will take effect in Q1 of 2025, the National Motor Freight Traffic Association announced.
- The changes are designed to simplify the classification system by using a standardized approach to LTL pricing based on density, handling, stowability and liability.
- The NMFTA is planning three listening sessions on the changes next month. The first will be for LTL carriers on Aug. 6, the second for third-party logistics providers on Aug. 7, and the last for shippers on Aug. 8.
Dive Insight:
These are no small changes to the rating guide used by LTL carriers to set their prices.
As many as 3,500 single-class items are expected to be shifted to 13 subcategories, NMFTA estimates.
In addition to simplifying the classification, the changes also seek to enhance the user experience and increase efficiency by reducing incorrect classification of shipments.
“We also focused on enhancing the user experience to make it easier to both use and understand the NMFC,” said Keith Peterson, director of operations for NMFTA, said in the announcement.
As 2024 progresses, the process is set to become more intensive, informative, and inclusive, NMFTA said.
“Both the NMFTA and NMFC expect the changes to streamline workflows, enhance communication and visibility, and increase the overall satisfaction of everyone involved,” NMFTA said.
