In mid-2025, the National Motor Freight Traffic Association (NMFTA) rolled out sweeping updates to its classification framework, shifting to a more density-driven model and consolidating thousands of commodity codes. These revisions amplify the cost and compliance risks of misclassifying less-than-truckload (LTL) freight. But the core principles of accuracy, consistency, and audit readiness remain timeless. If your freight classification process is weak, the penalties are hidden and avoidable.
Why freight classification errors hurt
Every LTL shipment must be assigned both a National Motor Freight Classification (NMFC) code and a freight class (ranging from 50 to 500), and they’re not interchangeable. The NMFC code identifies a commodity; the freight class distills how the shipment behaves in transit. Transportation providers use four key factors to make this determination:
- Density (weight per cubic foot)
- Stowability (how well it fits with other freight)
- Handling (ease or complexity of loading/unloading)
- Liability (damage, theft risk, special care)
When any of these inputs are inaccurate or when your systems use outdated codes, it triggers downstream issues, including reclassification fees, audit adjustments, higher freight costs, invoice disputes, chargebacks, and strained relationships. All of these eat into margins more than many shippers realize.
How to audit your LTL freight classification program
A disciplined audit process is the antidote to staying compliant in the area of changing NMFC codes. Here’s an evergreen framework:
- Build an accurate shipping data baseline. Ensure every SKU or commodity in your catalog has up-to-date weight, dimensions, packaging, and pallet configuration. Even small changes in packaging can shift density and class.
- Cross-check against NMFC/ClassIT+. Use the official NMFTA ClassIT+ tool or validated classification databases to verify whether your selected NMFC codes and classes align with current standards.
- Spot check/sample audit. Choose a representative subset of shipments (e.g., highest volume, highest cost, or frequently flagged ones) and verify that the class matches off-board invoices, density calculations are correct, special handling flags are properly applied, and there are no substitutions of generic or default classes. Document any discrepancies.
- Trace reclass adjustments. When your transportation provider or freight audit firm reclassifies a shipment, trace back the assumption or input error. Log whether it was a density miscalculation, packaging change, or outdated code. Use these insights to refine your master catalog.
- Train your teams. Classification is rarely handled by one person. Educate your warehouse, logistics, finance, and carrier liaison teams on how class is calculated, the effect of minor dimension or packaging changes, and why using defaults is risky.
- Negotiate chargebacks and disputes. If you receive an invoice with unexpected rebilling or classification surcharges, contest it with evidence. Use your audit logs, original bills of lading, classification references, and timestamped records. Many transportation providers and third-party logistics providers are willing to correct legitimate errors.
- Regularly refresh your catalog. Commodity definitions evolve. NMFTA publishes dockets revising thousands of codes, retiring obsolete ones, and refining classification logic. Make classification review part of your spring and fall planning cadence.
Why this matters more in 2025 (and beyond)
The 2025 updates have tightened the margins for error. The shift toward a 13-tier density scale, combined with revised commodity groupings and new special handling flags, means many shippers will be reclassified, even without changing their products.
Shippers who audited proactively and adjusted before July avoided surprise reclassification charges and transportation provider invoice adjustments. Those who didn’t are facing billing disputes or retroactive cost increases. By treating classification auditing as a recurring discipline, you create predictable freight costs, enable stronger transportation provider relationships, and reduce leakage from misclassification.