Preparing for 2025 Freight Class Changes

Examining how dealers can mitigate cost increases and disruption as new classifications put increased emphasis on equipment density.

In an effort to simplify the complex, the National Motor Freight Traffic Association (NMFTA) plans to implement significant changes to the National Motor Freight Classification (NMFC) on July 19, 2025. The proposed “reimagination of classification” aims to modernize and overhaul the current commodity classification system for less-than-truckload (LTL) freight, but it will also upend how transportation costs are determined for a wide range of foodservice equipment and supplies. As such, it is vital for FEDA members to recognize and plan for these changes to mitigate a direct impact on LTL transportation rates.

Although the NMFC doesn’t set LTL shipping rates, it plays a fundamental role in determining LTL pricing. Uniquely an American standard, freight class is referenced in most all LTL carrier tariffs and individual shipper contracts. Upon implementation, the NMFTA’s revision of the NMFC is likely to reset LTL rates for nine to 12 months as carrier pricing departments review shipments they handle based on new standards.

For FEDA members, understanding and preparing for these changes is especially crucial as LTL transportation rates have a solid connection to order profitability, customer delivery success, supply chain continuity, and administrative resources. Foodservice equipment and supplies dealers have a higher rate of exposure to the proposed modifications compared to others because of the wide array of commodities they manage and ship. There are approximately 3,000 specific commodity items being addressed as part of the NMFC’s update in July, and Kuehne+Nagel (K+N) estimates more than 500 of them will affect FEDA members.

Understanding Freight Class and the Proposed Change

In LTL shipping, freight class directly influences the cost of a shipment. The NMFC categorizes freight into 18 classes, ranging from 50 (lowest) to 500 (highest). Lower freight classes apply to denser, easier-to-handle items, leading to lower shipping rates per hundred pounds. A higher freight class signifies less dense, more difficult-to-handle items, leading to a higher rate per every hundred pounds shipped.

In addition to density, freight class is also determined by considering handling, stowability and liability. Collectively, these four characteristics determine the appropriate freight class, which LTL motor freight carriers use to calculate rate per hundred pounds and the discount based on their internal cost structures.

For the July update to the classification codes, NMFTA is focusing on commodities they have identified as being “density-only” commodities, meaning they do not carry a unique consideration for handling, stowability or liability. As an example, a palletized 36-inch undercounter refrigerator is in scope, whereas a 12-foot commercial kitchen hood is “out of scope” due to its lack of stowability (how easily a shipment can fit in a truck and across docks for transport).

Staying with refrigeration, the current freight classification for all refrigeration, regardless of the shape or size, is class 150. This is referred to as a “static” class item, meaning all refrigeration is currently classified as 150. Starting in July, refrigeration will become a “density-only” item in which the freight class will be determined based on the density (pounds per cubic foot, or PCF) of the refrigerator as it ships.

Per the NMFTA’s revision, density-only items will be one of 13 freight classifications, all based purely on PCF. This 13 sub-category classification system ranges from class 50 to class 400. Class 150 (current for refrigeration) is not represented in this particular density scale; however, even if it were, FEDA members would still need to determine the PCF to apply the appropriate freight class to the bill of lading of each refrigeration shipment.

Actions Distributors Can Take to Prepare

1. Engage With Carriers and 3PLs
   Dealers can mitigate the impact of freight class changes by working closely with motor freight carriers and third-party logistics providers (3PLs) to ensure a seamless transition. Proactively communicating about potential changes in freight classification can help avoid billing disputes and unexpected rate adjustments. For years, LTL carriers have been utilizing dimensioning equipment at their terminals to check the size, weight and classification of shipments. This information can be invaluable for dealers trying to determine what products fit into the new freight classifications. Distributors are encouraged to reach out to carriers or 3PLs and request insight from their dimension equipment to analyze affected items and understand how freight class and costs might change.

2. Audit Your Current Freight Classifications
   Now is a good time for dealers to review current NMFC classifications — whether stored in internal systems or based on institutional knowledge — to identify how each commodity will be impacted by the new density-based system. Certain commodities will shift to new classes, which will have both a cost implication and an administrative impact.

3. Optimize Packaging and Density
   Since density plays a more significant role in classification under the revised NMFC, optimizing packaging to increase density can result in cost savings. To take advantage of this opportunity, dealers can evaluate ways to increase dimensional weight and to maximize pallet space efficiency.

4. Invest in Additional Resources
   Although not required, purchasing a dimensioning machine or dimensioning technology can help dealers mitigate and organize the applicable changes to the NMFC. This would help not only with the changes coming this summer but also as the NMFC continues to adjust freight classifications in the future.

5. Update Internal Systems and Processes
   Warehouse management systems, transportation management systems (TMS) and other logistics software should be updated to align with the new NMFC changes. Dealers are encouraged to coordinate with their information technology and freight auditing teams to ensure a smooth data transition and compliance with the revised classification framework.

6. Train Staff and Educate Teams
   Freight teams, customer service representatives and logistics personnel should be trained on the NMFC updates. Dealers may consider hosting internal training sessions led by trusted partners who are experts in the field.

7. Monitor and Adjust
   After the new freight classifications are implemented on July 19, 2025, FEDA members would benefit from closely monitoring freight classification results and costs. Regularly reviewing freight invoices and working with carriers and 3PLs to resolve discrepancies will help ensure accurate classification and pricing.

Final Thoughts

Preparing for the NMFC changes requires a proactive approach. Although July may seem far off, these proposed complex changes will take quite a bit of time to manage and implement. By understanding the new classification system, optimizing packaging, updating systems, and engaging with industry stakeholders now, FEDA members can minimize disruptions and ensure a smooth transition. Remaining informed and adaptable is essential to maintaining cost-effective and efficient freight operations in 2025 and beyond.

About the Author

Kevin Brink is the vice president of LTL solutions for Kuehne+Nagel, a FEDA business services member that provides sea freight, airfreight, road, and rail logistics in more than 100 countries. Learn more at https://us.kuehne-nagel.com/en/.