Articles & Blogs:

Available Articles and Blogs

 

Schedule a Call

NMFC and Density-Based Pricing: What Shippers Need to Know

Posted on by

For less-than-truckload (LTL) shippers, understanding NMFC codes and density-based pricing is essential to controlling freight costs and avoiding unexpected rate adjustments. The National Motor Freight Classification (NMFC) system categorizes freight into different classes, directly impacting how LTL carriers calculate shipping rates. As freight costs continue to rise and carriers focus more on precision billing, staying informed on NMFC classifications and density-based pricing has never been more important.

With upcoming changes to NMFC and density-based pricing, shippers must proactively manage their freight classification to avoid misclassifications, prevent costly reclassifications, and ensure accurate shipping rates.

What is NMFC & Why Does It Matter?

The NMFC system, developed by the National Motor Freight Traffic Association (NMFTA), assigns a freight class to every type of commodity based on four key factors:

  • Density – The space a shipment occupies relative to its weight.
  • Handling – How easily freight can be loaded and unloaded.
  • Stowability – How freight fits within a trailer, including restrictions.
  • Liability – The risk of damage or loss.

These factors not only influence LTL shipping costs—where higher-class freight (e.g., fragile or bulky items) is more expensive to transport than lower-class freight (e.g., dense, easy-to-handle goods)—but also impact carrier liability coverage and claim resolution, adding another layer of importance to accurate classification.

How Density-Based Pricing Works

In recent years, density-based pricing has become the industry standard for LTL freight pricing. Instead of relying solely on commodity classifications, LTL carriers calculate rates based on freight density (measured in pounds per cubic foot).

This means:

  • Lower-density freight (bulky, lightweight items) often results in higher freight costs.
  • Higher-density freight (compact, heavier items) benefits from lower rates.
  • Accurate weight and dimensions are critical—incorrect data can lead to costly reclassification or chargebacks.

How a Freight Density Calculator Can Help

Using a freight density calculator can help shippers avoid classification errors and better manage freight costs.

These tools:

  • Instantly calculate density (lbs. per cubic foot) based on weight and dimensions.
  • Ensure accurate freight class assignment to prevent NMFC misclassification and costly chargebacks.
  • Help optimize packaging and load efficiency to reduce LTL shipping costs.

Having an easy way to validate freight density before quoting or booking can prevent unexpected reclassifications and charges.

Why NMFC & Density-Based Pricing Matter to Shippers

If your shipments are misclassified or incorrectly measured, you may face:

  • Unexpected rate adjustments
  • Billing disputes and delays
  • Higher freight costs due to incorrect classifications

To avoid these issues:

  • Use a freight density calculator to determine the correct density and freight class before booking.
  • Ensure proper weight and dimension calculations before quoting freight.
  • Use dimensioners or freight auditing tools to validate measurements.
  • Stay up to date on NMFC changes to avoid costly misclassifications.

Upcoming NMFC Changes in 2025

The NMFTA is modernizing the NMFC system to improve accuracy, simplify classification, and enhance the user experience. Changes rolling out in 2025 include:

  • Standardized density scale for general LTL freight (freight with special handling, stowability, or liability concerns will receive unique identifiers).
  • Condensed and modernized commodity listings for easier classification.
  • Improved ClassIT tool for better usability in determining freight classes.

These updates aim to make classifying freight more efficient while reducing disputes and reclassifications. Shippers should review their freight classifications and prepare for these changes to ensure compliance and cost efficiency.

Staying Ahead in LTL Shipping

As the industry shifts toward density-based pricing, shippers must adapt by accurately measuring freight and staying informed about NMFC updates. By doing so, you can avoid unexpected costs, improve logistics efficiency, and strengthen relationships with carriers.

Need help navigating NMFC changes? Contact FreightPlus for expert guidance on LTL freight classification and cost-saving strategies.