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The NMFC Overhaul: How Shippers Can Adjust to Updates The changes to the NMFC classification system that took effect on July 19, 2025, have major implications on LTL shipping. The impact on freight rates varies. Here’s how to manage. O ne prominent obstacle facing the industry is the poten- tial for shifting freight trends as production and
changes impact their freight classes and rates. This assessment will help shippers identify poten- tial cost implications and adjust their shipping strat- egies accordingly. ■ Optimize packag- ing. Efficient packaging practices are essential for minimizing densi- ty-driven costs. Shippers should evaluate their cur- rent packaging methods
manufacturing facilities are relo- cated worldwide, with companies striving to improve cost-effective- ness, speed of manufacturing, and inventory management. Shippers are carefully consider- ing how these factors impact their logistics operations and are contemplat- ing increasing onshore inventory levels in anticipation of potential disruptions. In the world of less-than-truck- load (LTL) shipping, the significant changes to the NMFC classification system, implemented in July 2025, rep- resent a formidable hurdle. The impact on freight rates varies 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. KEY ACTIONS TO TAKE ■ Stay informed. It is crucial for shippers to stay informed about the latest developments and information related to the NMFC changes. Shippers should regularly consult the NMFTA website and other industry resources to keep abreast of any updates or clarifications regarding the new classification system. ■ Assess commodity classifications. Shippers should conduct a thorough review of their commodity classifica- tions to understand how the NMFC
and explore opportunities to optimize package design and materials 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 mitigation strategies. CALCULATING THE IMPACT ON YOUR TRANSPORTATION SPEND SMC³ provides educational materials and transportation technology solutions to aid shippers, third- party logistics providers, and carriers in tackling challenges. The technology created by SMC³ forms a digital link between all stake- holders in the industry, empowering shippers and 3PLs to effectively man- age 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 ever-changing market conditions. 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 cal- culation of LTL expenses across multiple shipments in just a matter of minutes. ANALYZING EXPENSES SMC³’s BatchMark® XL is
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20 Inbound Logistics • November 2025
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