Big Changes Coming to LTL Freight Classification—Are You Ready?

The way Less-Than-Truckload (LTL) freight is classified—and priced—is about to change. Starting July 19, 2025, the National Motor Freight Traffic Association (NMFTA) will transition to a standardized, density-based classification system. This shift will significantly impact Freight All Kinds (FAK) pricing agreements, potentially increasing costs for some shippers while benefiting others.

If your business relies on FAK agreements, now is the time to prepare. Here’s what you need to know and how to stay ahead.

Understanding the Shift to Density-Based Classifications

For years, the National Motor Freight Classification (NMFC) system assigned freight classes based on a mix of factors: density, handling, stowability, and liability. With the upcoming change, density—the weight-to-volume ratio—will now take center stage.

This shift is designed to: 

✅ Simplify the classification process 

✅ Reduce ambiguity in freight classes 

✅ Align costs more accurately with the space freight occupies

While this standardization brings clarity, it also means many current FAK pricing agreements will need reevaluation—and some shippers may face higher costs.

What This Means for FAK Pricing Agreements

FAK agreements allow shippers to negotiate a single freight class for mixed-product shipments, simplifying pricing. With the new density-based NMFC classifications, here’s how FAK pricing will be impacted:

🔍 Reevaluating Existing FAK Agreements

📌 Carriers will reassess agreements – Expect carriers to scrutinize FAK contracts to determine if the new classifications affect profitability. Freight that previously benefited from lower-class designations may now move to higher classes if densities don’t align with new thresholds.

📌 Shippers may need to renegotiate – If your freight includes low-density items, be prepared for potential price adjustments. Carriers might push for higher FAK classes to reflect the true density of your shipments.

📦 Low-Density Commodities = Higher Freight Classes & Costs

• Items like plastic products, furniture, and insulation materials may see increased freight classes due to their lower density.

• Oddly Shaped & Hard-to-Stack Items: These could increase handling fees under the new NMFC structure due to space inefficiencies.

• Result? Higher per-pound shipping rates for these goods.

🛠️ High-Density Commodities = Lower Freight Classes & Cost Savings

• Items such as industrial machinery or metal components may qualify for lower freight classes, potentially reducing shipping costs.

• Opportunity? Shippers with predominantly high-density freight may be able to negotiate better FAK agreements under the new model.

More Audits & Stricter Compliance Measures

Expect carriers to tighten their audit processes: 

✔ Verification checks – Dimensioning equipment will be used to confirm actual freight densities. 

✔ Misclassification penalties – Declaring inaccurate densities could lead to reclassification fees, billing adjustments, and shipping delays.

Navigating the Transition: Key Strategies for Shippers

To minimize cost increases and ensure compliance, shippers should take action now:

✅ Analyze Your Freight Profile – Review the density of your shipments and assess how the new classifications will impact your FAK agreements.

✅ Open Conversations with Carriers – Engage with your carriers early to renegotiate FAK terms and clarify pricing under the new system.

✅ Invest in Accurate Measurement Tools – Implement dimensioning and weighing equipment to ensure precise density calculations and avoid misclassification penalties.

✅ Optimize Packaging – Reducing empty space in packaging can increase density and potentially lower your freight class.

✅ Stay Informed – Participate in industry webinars, training sessions, and carrier updates to stay ahead of best practices.

Final Thoughts

The transition to a density-based NMFC classification system represents one of the biggest changes in LTL freight pricing in recent years. Shippers who act now—by reassessing freight density, renegotiating agreements, and optimizing packaging—will be better positioned to minimize costs and avoid surprises.

How are you preparing for these changes? Drop your thoughts in the comments below!