SPONSORED CONTENT
SOLVED Supply Chain Challenge? How Shippers Can Prepare for NMFC Changes In the world of less-than-truckload (LTL) shipping, upcoming changes to the NMFC classification system loom large. The impact on freight rates could vary. Here’s what to expect:
keep abreast of any updates or clarifications regarding the new clas- sification system. ■ Assess commod- ity classifications. Shippers should con- duct a thorough review
challenges. The tech- nology created by
THE CHALLENGE One prominent obstacle facing the industry is the potential for shift- ing freight trends as production and manufacturing facilities are relo- cated worldwide, with companies striving to improve cost-effective- ness, speed of manufacturing, and inventory management. Shippers are carefully considering how these factors may impact their logis- tics and are contemplating increasing onshore inventory levels in anticipation of potential disruptions. In the world of less-than-truckload (LTL) shipping, the most formidable hurdle on the hori- zon is the upcoming changes to the NMFC classification system, slated to be implemented in 2025. The impact on freight rates could vary from increases to reductions, depending on the density of individual shipments. A thorough examination is necessary for shippers to comprehend the ramifications for shipping expenses. Those lacking established protocols for accurately measuring package density or managing cargo packaging will likely face significant disadvantages. THE SOLUTION ■ Stay informed. It is crucial for shippers to stay informed about the lat- est developments and information related to the NMFC changes. Shippers should regularly consult the NMFTA website and other industry resources to
SMC³ forms a digi- tal link between all stakeholders in the industry, empow- ering shippers and 3PLs to effec- tively manage their LTL operations from start to finish. This includes bid management, rate comparisons among providers, transit planning and scheduling of pick- ups, and invoice auditing. The analytical data and technological capa- bilities offered by SMC³ are crucial for strategic planning, optimizing trans- portation modes, and swiftly adapting to the ever-changing market conditions. SMC³’s BatchMark® XL is a quick batch rating tool that deliv- ers comprehensive analysis of freight expenses to shippers, 3PLs, and carri- ers. With this tool, users can simulate various scenarios and make adjustments to their freight characteristics, such as changes in shipment classifications. The high-speed batch rating feature of BatchMark XL allows for efficient calcu- lation of LTL expenses across multiple shipments in just a matter of minutes.
of their commodity classifications to understand how the NMFC changes will impact their freight classes and rates. This assessment will help shippers iden- tify potential cost implications and adjust their shipping strategies accordingly. ■ Optimize packaging. Efficient packaging practices are essential for min- imizing density-driven costs. Shippers should evaluate their current packag- ing methods and explore opportunities to optimize package design and materi- als to reduce the overall dimensions and weight of their shipments. ■ Collaborate with carriers. Open communication and collaboration with LTL carriers are crucial for navigating the NMFC changes. Shippers should engage in discussions with their carriers to understand their approach to the new classification system and explore poten- tial mitigation strategies.
CALCULATE THE IMPACT TO YOUR TRANSPORTATION SPEND
SMC³ provides educational materials and transportation technology solutions to aid shippers, third-party logistics pro- viders, and carriers in tackling upcoming
www.smc3.com
26 Inbound Logistics • May 2025
Powered by FlippingBook