Understanding NMFTA's Shift to Density-Based Freight Classification

The Impending Transformation in Freight Classification

The National Motor Freight Traffic Association (NMFTA) is introducing a pivotal update to its freight classification system, which will take effect on July 19. This move towards a density-based system marks a significant shift from the traditional commodity-based rating system, aiming to simplify processes and better reflect the actual characteristics of shipments. As NMFTA Chairman Clete Cordero explained, the new system will adjust classification based on the packaging and density of shipments. This change holds substantial implications for how freight charges are determined, as rates will vary more directly with shipment specifics.

 

What Does This Mean for Carriers?

Carriers will need to adjust their operations and systems to comply with the new standards. The most notable change involves ensuring accurate dimensions on every handling unit. Over the last few years, many carriers have already started incorporating dimensioners—advanced machines using lasers to measure the dimensions of freight—which have become essential tools under this updated system. These dimensioners, now certified for trade use, enable carriers to collect precise data on shipment density, crucial for this new classification approach.

 

Preparing for the Operational Changes

While some carriers have been slow to adapt, others have progressively implemented these changes, particularly over the past four years. For those ahead of the curve, the transition to the new system should be seamless. Cordero highlights that planning for programming changes to accommodate the updated system, including modifications in shipment categories, will be crucial for carriers not yet fully equipped.

 

Industry-Wide Impact

The Freight Classification Development Council has played a central role in developing these standards, having conducted public meetings throughout recent years to discuss and finalize these changes. With dimensioners now legally viable for trade, the less-than-truckload (LTL) industry can better gauge and apply shipping density, thereby enhancing accuracy in freight rating. The move to a density-based classification is not just a technical upgrade but a profound shift towards aligning freight charges more closely with actual shipping specifics. This transformation presents both a challenge and an opportunity for carriers to refine their operations and leverage advanced technology. As the effective date approaches, it's imperative for carriers to continue their adjustments to meet these new standards and capitalize on the potential benefits the updated system promises.