The 2:00 Minute Warning

Earlier this year, we highlighted the fact that major changes were being made to the LTL classification system that would enable LTL carriers to use a density-based pricing system. While the changes became effective in July, the impact has yet to be seen by companies with LTL shipping activity.

The reason: FedEx made an announcement that they wouldn’t apply the NMFC changes until January 2026. Quickly every LTL carrier dropped in line behind FedEx and stated that they would also wait until around the beginning of that year.

Are the LTL carriers trying to be nice? Not quite. What we learned is that their systems were not ready for the magnitude of changes initiated by the NMFC updates.  The shift to enable a density-based pricing system is a major one. Once implemented, it allows the carriers to establish rates based primarily on how much space your freight occupies in their trailer. 

What does that mean if you’re shipping LTL freight?

Watch how your freight classes change and how that impacts costs in 2026. If you have items that have historically moved as class 70 or class 85, they could now be moving to class 100 or 125 as the carriers apply density-based pricing to their criteria.

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If you’re interested in learning how to protect your company, talk to us about our LTL strategic assessment. We can help you gauge the impact of the potential changes, provide ideas on how to mitigate the impact, share sourcing ideas to reduce your LTL costs, and more.

What’s happening in the parcel sector?

According to one of our colleagues with a background in parcel shipping, now is a great time for you to review your parcel costs. Focus particularly on what you’re paying for accessorial charges. Lately FedEx and UPS have taken the “art of the accessorial” as I like to call it and elevated it to a completely different level. With significant increases being made, your parcel costs could rise more than expected.

How do you monitor and manage or reduce your parcel costs? We’re here to help and provide insights into mitigating the impact of these parcel changes. We have the tools and expertise to help you identify the best options possible. To learn more, send me an email, give us a call, or let’s get together via Calendly.