April 2025

This summer, the National Motor Freight Classification (NMFC) system will undergo a major update, set to take effect in July 2025. These changes are poised to significantly impact carriers, third-party logistics providers (3PLs), and shippers, especially concerning the cost of shipments based on their density.

Key Changes in the NMFC System

The updates to the NMFC will primarily concern the density of shipments. As density becomes a more central factor in determining LTL shipping costs, freight will be classified based on its space and weight combination. This shift is meant to reward denser shipments, which are more space-efficient, and charge more for low-density freight that takes up excessive trailer space without contributing much weight.

What Will Cost More?

The shipments most affected by price hikes will be those with low density. Shipments with densities under four pounds per cubic foot are expected to see significant price increases. For example, low-density items like certain footwear and clothing will experience higher shipping costs under the new classification system. These goods occupy more space on a truck without contributing enough weight to justify the cost, leading to higher fees.

What Will Cost Less?

On the flip side, denser freight will benefit from reduced rates. Items with densities between four and six pounds per cubic foot—and those heavier than eight pounds per cubic foot—are expected to see cost reductions. Industrial products or heavy machinery, which typically fall into these denser categories, will see lower costs as a result of the classification changes. This shift rewards businesses that ship heavier, denser freight.

What Will Stay the Same?

Some shipments will remain unaffected by the changes, particularly those with a density between six and eight pounds per cubic foot. These shipments should retain their current shipping rates, as they fall into the category that remains unchanged under the new system.

Impact on Carriers and 3PLs

For carriers, the updated classification system means adjustments to their pricing models and a recalibration of how they assess freight costs. Carriers will need to adapt their systems and training to account for the new density-based classifications. This may involve renegotiating contracts or reworking pricing strategies with shippers and 3PLs.

3PLs, in turn, will play a critical role in advising shippers on how these changes will impact their logistics strategies. With their expertise in navigating the complexities of freight classifications, 3PLs can help shippers optimize their shipments, recommend strategies to mitigate cost increases, and assist in ensuring that shipments are classified correctly to avoid costly errors.

The Time to Act is Now

As the July 2025 updates approach, shippers must start reviewing their freight classifications and assessing how the changes will impact their shipping costs. It’s essential to begin working with carriers and 3PLs now to ensure a smooth transition to the updated system.

At Westgate Global Logistics, we’re here to help. Our team can guide you through the new classification changes and develop strategies to optimize your shipping operations. Don’t wait until the last minute—reach out to Westgate Logistics today to start planning for the upcoming changes and ensure your supply chain remains cost-effective and efficient.