The NMFTA (National Motor Freight Association) announced new LTL Freight classifications starting July 19th. Previously, the plan was for the system’s debut in May, but the NMFTA pushed it to a later date. The adjustments are to lessen the challenges of the original NMFC (National Motor Freight Classification) system. Mark Davis of Averitt Express noted, “It’s a response to a decades-long complaint that the NMFC is too confusing and complex.” The push for the changes came as a new leadership recently got on board in the NMFTA. Shipper carriers and 3PLs (third-party logistics) providers believe the new changes will significantly benefit domestic shipping and provide transparency.
How Is The New Classification System Different?
One of the most significant differences between the two systems is simplifying the original one. The original NMFC was a nearly 90-year-old rating system that shippers and carriers used to identify and label freight. Due to the reliance on four characteristics (density, handling, stowability, and liability, the existing model could be difficult to interpret. As a result, the misinterpretations led to disagreements between shippers and carriers in the past. It also resulted in higher-than-expected costs for shippers. The new system will primarily focus on density while considering the other three conditions. It will create a more streamlined approach for determining accurate freight classes and lessen disputes.
In particular, the changes in phase one include expanding density ratings from 11 to 13 Subprovisions. The method further comprises:
- Including densities of 30 to less than 35 pounds per cubic foot in subprovision 11.
- Including densities of 35 to less than 50 pounds per cubic foot in subprovision 12.
- Including densities of more than 50 pounds per cubic foot in subprovision 13.
Cargos, with special handling, liability concerns, and packability, will also have new symbols to define them. The focus on density will simplify the classification process by grouping similar articles. NMFTA is also updating its online software with a new programming interface, allowing more accurate freight classifications.
What Can The New LTL Freight Classifications Mean For Shipping?
Numerous players in the domestic shipping industry see the new system as a breath of fresh air. For shippers, the likelihood of higher-than-expected costs decreases due to the lessening of freight reclassifications. It also will lessen disputes between the shipper and carrier by adding transparency. The supply chain will benefit from eliminating disruptions and quicker LTL shipment processes. Despite the new pricing system being beneficial for the industry, there are concerns about the impact of the latest changes. For shippers, the focus on density could change how the carrier prices their shipment. Greater density could mean a higher cost and vice versa.
If shipper’s rates change, it can impact their relations with carriers. The challenge for carriers will be managing their relationships with shippers through good communication and transparency. When shipping cargo domestically, it is essential to use truckers who can guide you through the process. Talking to freight brokers specializing in connecting you to dedicated carriers is ideal when starting. Contact A1 Freight Solutions at 786-375-9420 or info@a1wwl.com to begin moving your goods anywhere in the U.S. Along with LTL, we provide FTL (full truckload), expedited, heavy haul, temperature-controlled, and more solutions for your cargo.