Shipping costs can be a complex puzzle for businesses of all sizes. At Spot, we understand that navigating the world of freight classification can feel overwhelming. But fear not. This blog post is your one-stop guide to understanding NMFC classifications, a crucial piece of the shipping cost puzzle.
What are NMFC Classifications?
NMFC stands for National Motor Freight Classification. It’s a standardized system that assigns a numerical code to different types of freight based on various characteristics. These characteristics include:
- Density: How much space a shipment occupies relative to its weight.
- Stowability: How easily a shipment can be stored and transported on a truck.
- Handling: The ease or difficulty of moving the freight.
- Liability: The value and susceptibility of the freight to damage.
Why are NMFC Classifications Important?
NMFC classifications are vital because they directly impact your shipping costs. Carriers use these codes to determine your shipment’s freight class, which in turn influences the shipping rate. A lower NMFC code typically translates to a lower shipping cost.
Changes to the NMFC are coming!
The National Motor Freight Classification (NMFC) system is set for significant changes in 2025. These updates, announced by the National Motor Freight Traffic Association (NMFTA), are designed to simplify the classification system, enhance usability, and reduce friction between carriers, shippers, and third-party logistics providers (3PLs).
Critical changes to National Motor Freight Classification include:
- Standardized Density Scale: When handling, stability, and liability issues are absent, a single density scale will be used for less-than-truckload (LTL) freight. This will simplify the classification process and improve accuracy.
- Unique Identifiers: Freight requiring special handling, stowability, or liability considerations will have unique identifiers, making it easier to classify and handle such shipments.
- Condensed Commodity Listings: The commodity listings will be modernized and condensed to improve usability and streamline workflows.
- Enhanced ClassIT® Tool: Improvements to the ClassIT® classification tool is intended to make it more user-friendly and efficient.
The National Motor Freight Classification changes will be implemented in phases, with the first set, Docket 2025-1, taking effect on May 3, 2025. The NMFTA will host listening sessions for carriers, shippers, and 3PLs to provide detailed information about the changes and gather feedback.
How Can Spot Help You with NMFC Classifications?
We’re here to help streamline your shipping process. Our team of experts can assist you in:
- Identifying the correct NMFC code for your freight: We have the knowledge and resources to classify your shipments accurately.
- Negotiating with carriers: Our strong relationships with carriers can help you secure the best possible rates based on your NMFC classification.
- Optimizing your packaging: Proper packaging can improve your NMFC classification and potentially lower your shipping costs.
Ready to control your shipping costs? Contact Spot today for a free consultation. Our team of experts can answer all your questions about NMFC classifications and help you optimize your shipping strategy.