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How 2025’s NMFC Changes Will Impact Shippers
More than 40% of commodities will have classes determined by a new, expanded density scale in July 2025. Here are some key impacts on less-than-truckload (LTL) shippers.
T he most prominent challenge in the LTL sector in 2025 is the expected simpli cation to the NMFC classi cation system as more than 40% of commodities will have classes determined by a new, expanded density scale in July 2025. The impact on freight rates will vary, with potential variances determined on a shipment- by-shipment basis by density. Those without established processes for accurately determining package density or those who don’t effectively manage their packaging processes may pay more for their LTL transportation. The impact of these classi cation changes will vary depending on the current classi cation methodology used for each commodity, as well as how ef ciently each shipment is individually packaged. This is because density will determine the newly assigned class of affected shipments. The 2025 NMFC changes will have far-reaching implications for shippers and their business operations. Some key impacts include: 1. Freight class reclassi cation: Many commodities will likely experience changes in their freight classi cation due to the revised density scale and the transition of various items to the full density scale. Shippers must proactively review their commodity classi cations to understand how
2. Rate volatility: The NMFC updates may lead to uctuations in freight rates, with some commodities experiencing rate reductions while others face potential increases. Shippers need to carefully
Shippers must proactively adapt and optimize their operations to maintain a competitive advantage in light of these NMFC changes. This includes focusing on enhancing their data management capabilities to gain real-time visibility and enable more reliable scenario planning, while seeking out smarter carrier collaboration opportunities. It’s imperative shippers seek methods for collaborating with their carriers— who have access to data, information, and transit intelligence—to gain a deeper insight into how these changes in classi cation affect their operations. By working closely with their carrier partners, they can adjust to these changes in a manner that advantages both sides. SMC³’s BatchMark ® XL solution serves as a rapid batch rating tool, delivering comprehensive freight expenditure analytics to shippers, 3PLs, and carriers. This tool allows users to create various scenarios and simulate adjustments to their freight characteristics, including alterations in shipment classi cations. The high-speed batch rating feature of BatchMark XL enables them to ef ciently calculate the implications for their LTL expenses across numerous shipments in mere minutes.
analyze the potential impact on their transportation spend and develop strategies to mitigate any adverse effects.
3. Packaging optimization: The increased emphasis on density
highlights the importance of ef cient packaging practices. Shippers should evaluate their current packaging methods and explore opportunities to optimize package design and materials to minimize density- related costs. 4. Data management: Accurate data management will be crucial for navigating the NMFC changes. Shippers must ensure they have the necessary systems and processes in place to capture and analyze relevant data, such as commodity dimensions, weight, and density.
–By Brian Thompson
these changes will impact their shipping costs and adjust their budgets accordingly.
Chief Commercial Ocer SMC 3
www.smc3.com 800-845-8090
To learn more about how SMC³’s BatchMark XL solution can optimize your freight transportation spend, visit www.smc3.com.
20 Inbound Logistics • April 2025
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