Managing freight classifications is changing, requiring logistics teams to adapt and stay informed to maintain accuracy and efficiency. Starting July 19, 2025, the National Motor Freight Traffic Association (NMFTA) is rolling out major changes to the National Motor Freight Classification (NMFC) system. These updates will directly impact how LTL shipments are classified, rated and billed, making it essential for Shippers and 3PLs to understand what’s changing and how to prepare.
Keith Peterson, Director of Operations at the NMFTA, recently joined Banyan Technology’s Tire Tracks podcast to discuss what the 2025 NMFC classification changes really mean for the freight industry. As the leader responsible for overseeing the NMFC classifications team, Peterson shared both the reasoning behind the updates and how they were developed.
“The whole point of these changes is to make classification easier and simpler to use for everybody, even someone new to the logistics business,” Peterson explained. He noted that the NMFTA has been transitioning toward a density-based model for several years, but the July 2025 update represents a major leap forward. More than 2,000 item numbers are being moved to full density scales, supported by a newly expanded 13-tier system.
The NMFC changes reflect how freight actually moves today. “So much of it is just boxes or materials on a pallet,” Peterson said. “It moves easily across docks and into trailers. The new model reflects that shift and gives carriers better tools to charge based on trailer space, which is what they truly care about.”
The updated model is also designed to reduce confusion. By consolidating listings and standardizing density scales, Shippers can determine accurate classifications using basic shipment data like weight and dimensions, without relying on outdated or highly specific commodity listings.
Peterson emphasized that the NMFTA worked with Carriers, 3PLs and large Shippers for more than a year to prepare the industry and gather feedback. “We created a free NMFC Item Lookup Tool that helps users see if their item numbers are affected and what the new classification looks like,” he said.
The NMFTA is shifting toward a more data-driven, simplified approach to freight classification. Some of the most significant changes include:
The 2025 NMFC classification changes will significantly reshape how freight is rated and billed. For Shippers and 3PLs, the shift to a more precise, density-based model requires more than a quick fix. It demands operational readiness, updated shipment data and alignment across transportation systems. Those who fail to adapt risk frequent misclassifications, inaccurate rating, and billing discrepancies that can lead to costly delays and strained Carrier relationships.
For 3PLs managing a wide range of Clients and shipment profiles, the complexity increases. If internal systems are not updated with the revised NMFC item numbers and the new 13-tier density structure, it can create confusion across quoting, booking, and invoicing processes. Outdated product data can undermine rating accuracy, delay approvals and create tension between Shippers, Carriers and Clients.
When freight is misclassified, Carriers may reclass shipments after pickup. This often results in unexpected charges, corrected invoices and lengthy dispute resolution cycles. Beyond financial impact, this can disrupt billing workflows and weaken long-term Carrier partnerships that depend on accuracy and consistency.
With the launch of ClassIT+ and the revised classification structure, logistics teams have access to better tools for aligning freight data with accurate pricing. Shippers can use current weight and dimension data to classify freight more reliably, improving cost control and delivery accuracy. 3PLs can streamline quoting and billing, reduce friction across accounts and strengthen Carrier and Client satisfaction.
The changes present an opportunity for forward-thinking organizations to modernize their processes. Teams that review and update their product catalogs, train staff on the new model and ensure their TMS or API integrations reflect the latest classifications will be prepared to navigate these updates without disruption.
To stay ahead, Shippers and 3PLs should take the following steps:
The updated NMFC classification model is more than a regulatory change. It is a strategic opportunity for Shippers, 3PLs and Carriers to align freight operations with modern shipping realities. By shifting to a more precise, density-based classification structure, the model improves rating accuracy, simplifies quoting and minimizes unexpected charges that often lead to disputes or delays.
For logistics professionals who depend on predictable rate structures and efficient planning, the changes coming in July 2025 offer a chance to gain greater control over freight spend. More accurate classifications support cleaner invoices, faster payment cycles and stronger relationships with Carriers who value clear expectations and transparent communication.
While the July 2025 docket is the largest in NMFTA’s history, with more than 2,000 item numbers affected, it is not the final word. “There’s still more research to do and more items to update,” said Peterson. “But we’re in a better position now to keep evolving the classification system to match today’s shipping environment.”
This continuous improvement approach signals a future where freight classification becomes more intuitive and adaptable. Logistics teams can focus less on decoding item numbers and more on optimizing shipment strategy. The key is preparation. Teams that take time now to review their item numbers, update product catalogs and align with technology partners like Banyan will be well-positioned to navigate these changes with confidence.
As the freight industry prepares for the July 19 NMFC classification updates, Banyan Technology is focused on keeping clients informed, supported and ready. Teresa Waldron, Banyan’s Director of Client Experience, shared how her team is preparing during a recent episode of the Tire Tracks podcast featuring NMFTA’s Director of Operations, Keith Peterson. The episode releases May 14 and offers key insights into how and why the classification system is changing.
“Here at Banyan, we’re staying educated, staying on top of the changes and keeping our clients informed,” said Waldron. “We’ve got the updates in our upcoming development sprints, and our teams are trained and ready to help.”
Banyan is updating its internal tools to reflect the new 13-tier density structure. This includes enhancements to the density and class estimators in its TMS platform, as well as an API update to connect with the new ClassIT+ system. Waldron emphasized the importance of preparation for clients using product catalogs: “Our clients manage their own product catalog, and if they have a lot of classes that need to be updated, those changes are going to have to be made.”
To support clients, Banyan’s Client Solutions team is available to answer questions and assist with updates. “We’re here to help,” Waldron said. “If you’re unsure what needs to change in your catalog, reach out. We’re making sure our platform delivers real-time accuracy when the changes take effect.”
Banyan also encourages clients to take advantage of the free NMFC Item Lookup Tool from NMFTA, which Waldron praised for its ability to bulk check items for changes. “It’s a very nice tool. You can import and export item numbers, and it clearly shows what’s impacted.”
With both the technology updates and the expert support in place, Banyan ensures its clients are equipped to handle the NMFC changes with confidence.
To learn how Banyan helps Shippers and 3PLs prepare for the 2025 NMFC classification changes, visit banyantechnology.com.