July 2025 marks a seismic shift for less-than-truckload (LTL) shippers: the National Motor Freight Classification (NMFC) system is getting its biggest overhaul in years.
If you ship freight via LTL – especially across the U.S. or from global ports into North America – this change will directly affect your container shipping rates and profitability.
In this post, we break down:
- Exactly what’s changing,
- How it impacts your shipping costs, and
- What logistics teams in Australia, the UK, and globally need to do to stay ahead of the curve.
What Is the NMFC - and Why Should You Care?
The National Motor Freight Classification (NMFC) is a standardized system used to determine freight classes for LTL shipments.
It assigns freight classes (ranging from 50 to 500) based on these criteria:
- Density – weight per cubic foot
- Stowability – ease of loading and combining with other freight
- Handling – how difficult it is to move
- Liability – the risk of theft, damage, or loss
This classification directly affects container shipping rates, especially for LTL loads, because carriers use it to determine how much to charge per hundred pounds (CWT).
Any wasted space is going to drive shipper costs up as commodities shift to a class based on density.
Wasting space on your pallets means you will be paying good money to ship extra air.
It is crucial to ensure that your new classifications are correct – or you could face extra charges and delays. Which don’t make for happy customers.
What’s Changing in July 2025?
1. A New 13-Tier Density Scale
The NMFC is shifting to a more precise, density-based classification system, expanding the traditional 11-tier structure to 13 distinct subcategories.
This change allows for more accurate freight class assignments based on weight per cubic foot (pcf):
- Sub 12: 35 – 50 pcf → Class 55
- Sub 13: 50 pcf or greater → Class 50
- Sub 11 also shifts slightly (30 – 35 pcf = Class 60)
This update rewards high-density freight with lower class ratings – and therefore lower container shipping rates – while penalising low-density, space-inefficient freight.
2. Consolidation of Over 2,000 Commodity Codes
Rather than relying on commodity-specific listings, many items will now be classified purely by density – simplifying, but also shifting responsibility to shippers for accurate data.
3. Special Handling Identifiers
New flags for items needing hazmat handling, unique loading methods, or other exceptions – making accurate classification even more critical.
How NMFC Affects Container Shipping Rates (and Your Bottom Line)
Here’s the hard truth: if your freight dimensions or weight are inaccurate, you’re throwing money away.
Incorrect class = incorrect rate
Under-declared dimensions = chargebacks and reclass audits
Too much air in your pallets = wasted paid space
Let’s break it down:
Scenario
- You under-dimension your pallet
You over-dimension your pallet
You don’t update commodity codes
Result
- Carrier reclassifies it, applies audit fees, and you pay more
- You pay for space you didn’t use
- You may be billed at a higher class due to assumed risk or inefficiency
Optimising for density (and thus a better NMFC class) directly reduces your LTL and container shipping rates. It’s not just about moving freight – it’s about moving smarter.
How to Prepare for the NMFC Changes
1. Review Your Current Freight
- Use the NMFC Item Lookup Tool
- Identify all items that are shifting to density-based classification
- Audit your current pallet builds and dimensional data
2. Communicate With Your 3PL or Carrier
- Align your TMS or shipping software with the new classification logic
- Update catalogued SKUs with accurate dimensions and weight
- Ask how they’re preparing for Docket 2025-1
3. Educate Your Team
- Train warehouse teams to dimension every pallet accurately
- Eliminate manual data entry wherever possible
- Enforce new procedures for updating NMFC codes and special handling flags
4. Implement Tools That Get It Right
- Use automated dimensioners (like Cubiscan)
- Require NMFC codes and dimensions on every BOL
- Integrate your TMS with real-time class assignment logic
Real Talk: Are You Shipping Air?
It’s more common than most shippers think.
That “standard pallet” you eyeballed at 48x40x48? If it’s only half full and you guessed the weight, you’re likely classified at Class 125 or higher – when with better pallet-building and measurement, you could hit Class 60 or even 50.
That’s not just a technicality – it’s a 20–40% rate difference.
Ask us to put you in touch with a reliable 3PL provider that will sort this out for you.
FAQ’s: NMFC Changes and Shipping Rates
1. What is the NMFC and why is it changing in 2025?
The NMFC (National Motor Freight Classification) is a system for classifying LTL freight.
The July 2025 changes modernise the system by making it more density-based, reducing subjectivity and simplifying class assignment.
2. How do the NMFC changes affect container shipping rates?
Freight class determines the rate per 100 lbs. Lower density = higher class = higher rates. The 2025 updates mean inaccurate dimensions can cost you more than ever.
3. What is the new 13-tier density scale?
New tiers have been added:
- Sub 11: 30–35 pcf = Class 60
- Sub 12: 35–50 pcf = Class 55
- Sub 13: 50 pcf or greater = Class 50
4. Will I need to change my BOL process?
Yes. You must now include exact dimensions and weight on every Bill of Lading (BOL).
Incomplete data will result in audits and extra charges.
5. Can I still use standard size pallets without measuring?
No. “Eyeballing it” could cost you – pallets must be measured accurately for every load to avoid reclassification.
6. How can I reduce my LTL shipping costs?
- Optimize pallet builds for density
- Use automated dimensioning tools
- Ensure your NMFC codes are accurate
- Avoid shipping “air” in underfilled pallets
You can speak to us about using a knowledgeable 3PL provider that will handle this for you.
7. Who is affected by this - just U.S. shippers?
Primarily U.S. domestic LTL, but international and global shippers (especially in Australia and the UK) using U.S. networks are equally impacted .
Sources:
– The National Motor Freight Traffic Association – website 2025 NMFC Changes
– IncoDocs website – National Motor Freight Classification (NMFC) Codes: Guide to Freight Classification and chart by Ben Thompson
Final Thoughts
The July 2025 NMFC updates mark a new era of accountability in LTL freight. If you’re not dimensioning freight accurately, you’re paying to ship air.
That drives up your container shipping rates, creates audit headaches, and cuts into your margins.
Get ahead now:
- Review your current shipments
- Update your systems
- Train your team
- Ask us about sourcing a credible 3PL provider
A few changes now could save thousands over the next 12 months.
Need help auditing your LTL program or reducing wasted space?
Let’s talk. We’ll help you optimise your shipping profile for the new freight landscape – before the first chargeback hits.