Shipper’s Guide to Preparing for NMFC Code Changes in 2025

Freight industry professionals are gearing up for one of the most significant updates in recent years, as changes to the National Motor Freight Classification (NMFC) codes come into effect on July 19, 2025. These updates, evolved as part of the "Classification Reimagined" initiative, aim to improve user experience and increase efficiency in the less-than-truckload (LTL) classification process.

For businesses that rely on LTL shipping, understanding and preparing for these updates is critical to avoid potential disruptions. This guide will break down the key changes, their impact, and actionable steps to help shippers prepare effectively. 

What Are NMFC Codes and Why Are They Changing? 

NMFC codes are standards developed by the National Motor Freight Traffic Association (NMFTA) to classify commodities for LTL shipments. These codes are essential for calculating transportation rates and ensuring transparency and consistency across the freight industry. 

Currently, the NMFC system assigns items to one of 18 freight classes (Class 50 being the least expensive, scaling up to Class 500). The classification is based on four key factors:

• Density (space occupied relative to weight)
• Stowability (ease of stacking and storing)
• Handling (loading/unloading requirements)
• Liability (value of and risks to the goods)

The 2025 NMFC code update introduces changes to better align with the evolving challenges of the freight industry. A major shift will be the move from the existing 11-tier density classification scale to a 13-tier model, offering a more nuanced approach to classification. 

This revision emphasizes:

• More density-focused classifications, reducing the reliance on handling, stowability, and liability for many commodities.
• Simplification of the process with unique identifiers for items requiring special consideration. 

Why These Changes Are Necessary 

The "Classification Reimagined" initiative reflects the industry's need for greater efficiency, accuracy, and adaptability, especially in light of increasing e-commerce growth, dynamic shipping methods, and the complexities of modern transportation. 

The updates are designed to:

• Address ambiguities in freight classes. 
• Improve transparency in pricing. 
• Streamline workflows for shippers, carriers, and third-party logistics providers (3PLs). 

Key Highlights of the NMFC Code Changes

Here’s what you need to know about the upcoming updates:

• Introduction of 13-density classes: The new tiers will offer better granularity in freight classification.
• Density becomes king: Many commodities will now be classified based solely on density. 
• Unique identifiers for special cargo: Commodities with specific handling, stowability, or insurance requirements will receive unique classification codes. 
• Adjustment to commonly shipped items: Categories like apparel, furniture, electronics, and food products will see reclassifications based on modern shipping realities. 

Shippers should expect the following hurdles as the industry transitions:

• Learning curve required to adapt to the new scale and identifiers. 
• Potential cost increases for low-density items due to upward class adjustments in the new system. 
• Potential increase in re-class fees if shippers don’t make the necessary class adjustments

Impacted Commodities 

These changes will impact nearly 100 commodity groups, significantly altering their freight classifications. Here’s a snapshot of what to expect for major categories:

• Textiles and Apparel: Classification updated based on folding, packaging, and hanging methods. 
• Furniture: Differentiation between knocked-down (KD) and fully assembled items. 
• Agricultural and Food Products: Adjusted classes reflecting perishability and packaging. 
• Electronics: Addressing fragility and handling concerns with targeted adjustments. 
• Sporting Goods and Medical Supplies will also see modernized classes addressing liability and transportation requirements. 

Freight All Kinds (FAK) Agreements 

Shippers relying on Freight All Kinds (FAK) agreements, which consolidate multiple shipments under one class, should prepare for significant adjustments. The new density classifications may disrupt existing agreements by altering the way goods are grouped and rated. 

• Reclassification of freight bundles under the new density scale will create a need to revisit existing FAK agreements.
• Rate adjustments will likely force businesses to reevaluate and potentially renegotiate shipping contracts.

How to Prepare for the NMFC Code Changes 

Preparing for these changes requires proactive planning and strategic adjustments. Here’s how businesses are gearing up for the 2025 NMFC updates:

• Analyze Past Data: 
  
  • Review historical shipment data to understand which commodities will be impacted and evaluate possible adjustments in packaging, labeling, or shipping methods.
• Upgrade Technology:
  
  • Invest in dimensional scanners and pallet scales to ensure compliance with density requirements.
  • Enhance data management systems to streamline shipping documentation.
• Collaborate with Carriers:
  
  • Initiate discussions with your carriers well in advance to assess how agreements like FAK will be affected and identify opportunities for renegotiation.
• Educate Your Teams:
  
  • Host training sessions to familiarize employees with the new classification system, density scales, and other changes.
  • Utilize resources like the NMFTA’s reclassification lookup tool for increased accuracy in commodity classification (click here to access the tool).
• Engage Industry Resources:
  
  • Attend NMFTA listening sessions and webinars to stay up to date with these changes.
  • Work with freight consultants and third-party logistics (3PL) providers to navigate the transition efficiently.
• Consider Alternatives:
  
  • Consider other modes that don’t require complex freight classification, like truckload, partial, and Shared Truckload.

What to Expect After July 19, 2025 

Once the changes are in place, shippers will face a short transitional period marked by:

• Adjustments in freight rates as the new density tiers are implemented. 
• Documentation challenges as businesses refine their data-recording practices. 
• Legal and compliance considerations, particularly for unique identifiers. 

However, the long-term potential includes a streamlined, efficient freight ecosystem where transparency, accuracy, and trust dominate. 

Shared Truckload as a Solution for Post-NMFC Updates Challenges 

For shippers managing items classified with now-higher NMFC codes, transitioning to Shared Truckload (STL) shipping could be a game-changing solution. STL offers shippers several strategic advantages over traditional LTL modes:

Benefits of Shared Truckload 

Cost Efficiency 

STL combines shipments from multiple shippers into a single truck, sharing transportation costs and providing more competitive shipping rates compared to new, higher LTL rates. 

Improved Operational Efficiency 

STL improves delivery reliability by minimizing stops and detours typical of LTL shipments, resulting in faster transit times and fewer disruptions. 

No Freight Class Needed 

Unlike traditional LTL shipments, STL removes the need to classify freight by NMFC codes entirely, eliminating re-class fees, disputes, or administrative burdens. 

Ideal for Bulky or Fragile Items 

STL provides safer transport for irregular or fragile freight, thanks to direct-to-consignee shipping with fewer touchpoints, lowering the risk of damage.

By leveraging STL, shippers can sidestep many of the challenges posed by the NMFC code changes while optimizing overall shipping efficiency.

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