Let’s Fix This LTL Stuff and Get Ahead of Upcoming NMFC Changes

Mar 5, 2025


Since hosting our LTL webcast with our friends from CSCMP and the NIT League on January 9th, we’ve been inundated with calls and emails from customers and other shippers asking for help. The reason for this is because upcoming changes to the National Motor Freight Classification (NMFC) system represent the most significant changes in LTL pricing since the motor carrier industry was deregulated in 1980.

Here are the most common questions and concerns we have been addressing: 

• “How can we tell if the products we ship are ‘in scope’ or ‘out of scope?’” If you know the NMFC numbers for the products you ship, review the NMFTA’s Docket 2025-1 to see if your products are listed as being under review and subject to change effective July 2025. If you don’t know the NMFC numbers for the products you ship, or are having trouble deciphering the Docket, CALL TRANZACT or just respond to this email. We can help you!

• “If we are a shipper that has a Freight All Kinds (FAK) rate structure and we want to protect that FAK structure going forward, what should we be doing?” There are a couple of things that you need to do ASAP. If you’re interested in knowing what those things are, CALL TRANZACT or just respond to this email. I’ve had a bunch of shippers tell us our advice was “spot on” and very helpful! 

• “If I prepay the freight for my shippers and either include the freight in my sales price or add it to the customer invoice, could these changes hurt my bottom line profitability?” The answer to that question is: “Yes, it definitely can and likely will unless your company knows how to manage variability in your freight pricing.” For example, if you charge you customer $250 and it ends up being $350 because of these LTL changes, are you going to try and collect the extra $100 from that customer? How do you protect your margins and prevent these costs from adding up? CALL TRANZACT or just respond to this email. We're here to help! 

There are several other questions and issues we have been answering for our customers and others. Instead of trying to figure out how all these LTL changes will impact your company, let’s have a conversation about how TranzAct’s LTL Strategic Assessment can benefit your company. We have a checklist and practical steps to help identity and address your unique issues ahead of the NMFC changes. When it comes to managing your LTL costs, it doesn’t have to be a headache. 


One final note. This past Monday, TranzAct personnel attended the NMFTA (the governing body with responsibility for the NMFC) meeting with the public to hear feedback on the items included Docket 2025-1 which outlines the proposed changes to freight classification covering a ton of products. Now that they’ve heard commentary, we’re one step closer to having these changes take effect in July 2025.


If you are looking for some other great resources on managing your LTL costs, here are a few actions you can take now:

We encourage you to start having conversations, if you haven’t already so that you’re not behind the curve. If you’re interested in learning more and getting on top of LTL shipping, simply send me an email, give us a call, or let’s get together for a virtual meeting.

 

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

CONNECT ON LINKEDIN

LET'S TALK! BOOK TIME WITH ME