Freight transport company FedEx Freight grants shippers an extension to adapt to revised Less Than Truckload (LTL) class rules.
The National Motor Freight Traffic Association (NMFTA) has updated its freight classification ratings, moving the Less Than Truckload (LTL) freight classification system towards a density-based model. This change impacts carriers like FedEx Freight, who are adjusting to the new system by delaying enforcement until December 1, 2025.
FedEx Freight is giving its customers more time to adapt but encourages early adoption. The new system is expected to more accurately align actual carrier costs with pricing by focusing on the density of shipments, which will determine their classification in the new system if they are commodities moving to density-based classification.
Key impacts on FedEx Freight and shippers include:
- **Density-Based Classification:** The National Motor Freight Classification (NMFC) system changes focus primarily on freight density (weight divided by cubic feet), replacing many commodity-based classifications with a 13-subdensity scale to more precisely rate high-density freight.
- **Shipping Costs and Accuracy:** A higher density means a lower freight class, often resulting in lower shipping costs. Accurate measurement of weight, dimensions, and density is critical to ensure proper classification and avoid delays or reclassification fees.
- **FedEx Freight Implementation:** While FedEx Freight delays strict enforcement to December 1, it warns that shipments with incomplete or inaccurate bill of lading (BOL) information may incur future inspection surcharges (Item 980, Item 981).
- **Preparation Steps for Shippers:** - **Know your freight:** Measure and document shipment dimensions, weight, and density precisely. - **Use new classification tools:** Tools like NMFTA’s ClassIT+ are introduced to help shippers classify freight under the new system accurately. - **Update Bills of Lading:** Ensure BOLs include accurate and complete details to avoid inspection charges. - **Train staff:** Educate personnel on the new rules, density-based classification, and how it affects pricing. - **Coordinate with carriers:** Engage with carriers like FedEx Freight early to adapt processes and pricing expectations.
This update aims to create a more transparent, streamlined, and user-friendly freight classification system that better aligns shipping costs with actual freight characteristics and carrier expenses. FedEx Freight is adapting by delaying enforcement but preparing customers for density-based classification as the core billing determinant. Shippers need to provide complete, accurate shipment details and may need new tools and training to comply efficiently with the updated NMFC rules, minimising risk of surcharges and ensuring smoother transitions.
- FedEx Freight is urging its customers to prepare for the upcoming density-based freight classification system, as this change in the National Motor Freight Classification (NMFC) system is expected to align shipping costs more accurately with actual carrier costs by focusing on the density of shipments, which will determine their classification.
- To smoothly transition to the new freight classification system, shippers need to measure and document their shipments' dimensions, weight, and density precisely, ensuring their bills of lading (BOLs) include accurate and complete details, and their staff are trained on the new rules, as incomplete or inaccurate information may lead to inspection charges from FedEx Freight or other carriers.
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