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Outside the US , LTL freight is typically moved under dimensionweight pricing systems . Shutterstock . com

US shippers urged to prepare for LTL class changes , rate reset

By William B . Cassidy

The biggest revision of the less-than-truckload ( LTL ) freight classification system in the US in decades is under way , and shippers are increasingly concerned about the potential impact on their LTL pricing .

“ Customers are asking if this is a veiled attempt to raise rates ,” Clete Cordero , vice president of pricing and traffic at Southeastern Freight Lines , said at the SMC3 Jump Start 25 conference in Atlanta . Cordero says “ no ” to that question , but shippers are right to be worried .

“ The NMFC needs to be simpler and easier to understand .”

“ I think what ’ s really going to happen is a resetting of rates ,” he said during a session on proposed changes to the National Motor Freight Classification ( NMFC ). “ For at least the first year , there ’ s going to be a resetting .”

Rates may go up or down depending on various factors for each individual shipper as classes change , Cordero said , and there ’ s no way now to fix a percentage to the changes . Shippers are pretty sure in most cases rates will rise — if they do nothing .

“ We have to really work with our distribution centers on dimensions [ of palletized freight ],” Mike Williams , director of global logistics at Copeland , a manufacturer of products that improve energy efficiency , said during the conference . “ We ’ re not as prepared as we ’ d like to be , but we ’ ll get there .”

The National Motor Freight Traffic Association ( NMFTA ) which oversees the NMFC , on Jan . 30 released a docket that contains more than 90 proposed changes to the classification system , calling it nothing less than a “ reimagination of classification .”

“ A normal docket contains about 15 proposals ,” Keith Peterson , director of operations at NMFTA , said at the SMC3 conference . The new docket , known as 2025-1 , is available to download and will be discussed by NMFTA staff in webinars and public meetings .

“ We ’ re making a conscious effort to get out there and talk with shippers ,” Peterson said . “ The question I hear most often is , ‘ Do I need to buy a dimensioner ?’”

The answer is “ maybe .” Shippers will need to more accurately measure the dimensions and weight of every pallet , which for some will mean big changes to the procedures they use to build pallets and move freight .

NMFTA will start reviewing feedback on the changes Feb . 25 and hold a public meeting on March 3 to discuss any changes made following feedback . The final changes will become effective July 19 , according to NMFTA .

When they do , they will affect practically everyone shipping LTL freight in the US .

Simplify , simplify

Almost everyone in trucking believes the NMFC is long overdue for an overhaul — if they believe it should be retained at all . The motor freight classification dates to 1936 , and its roots go back to the days when railroads hauled less-than-carload freight .

Trucking companies took most of that freight from railroads in the 1920s , and the classification system followed the freight .

The NMFC is a distinctly American standard ; outside the US , LTL freight is typically moved under dimensionweight pricing systems . The classification system doesn ’ t

56 Journal of Commerce | March 3 , 2025 www . joc . com