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SOLVED Supply Chain Challenge? 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:
keep abreast of any updates or clarifications regarding the new classification system. ■ Assess commod- ity classifications. Shippers should con- duct a thorough review
challenges. The tech- nology created by 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.
THE CHALLENGE One prominent obstacle facing the industry is the potential for shifting freight trends as production and manufacturing facilities are relocated worldwide, with companies striving to improve cost- effectiveness, speed of manufacturing, and inventory management. Shippers are carefully considering how these factors may impact their logistics and are contemplating increasing onshore inventory levels in anticipation of potential disruptions. In the world of less-than-truckload (LTL) shipping, the significant changes to the NMFC classification system, implemented in July 2025, represent 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. THE SOLUTION ■ 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
of their commodity classifications to understand how the NMFC changes 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 mitigation strategies. CALCULATE THE IMPACT TO YOUR TRANSPORTATION SPEND SMC³ provides educational materials and transportation technology solu- tions to aid shippers, third-party logistics providers, and carriers in tackling
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18 Inbound Logistics • August 2025
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