On July 19, the National Motor Freight Traffic Association (NMFTA) implemented a significant update to the National Motor Freight Classification (NMFC) system, which categorizes less-than-truckload (LTL) freight based on thousands of codes. This marks the most substantial change to the classification system in decades, potentially impacting small and medium-sized businesses (SMBs) that rely heavily on LTL shipping.
© C.H. Robinson
The revised NMFC introduces updated rules on freight density and adds new classification categories. These changes could cause confusion, delays, or increased costs, particularly for SMBs that may not have extensive logistics infrastructure or automated systems in place.
To address this challenge, logistics providers are adopting tools to assist shippers in adjusting to the revised system. C.H. Robinson, a large LTL freight mover in North America, has introduced an AI-based freight classification tool aimed at simplifying this transition. The technology automates the identification of NMFC classes and codes, reducing the risk of misclassification, which can lead to inspections, invoice adjustments, and shipping delays.
Freight classification under the NMFC system depends on various factors, including size, weight, density, handling, and liability. The recent changes particularly affect how density is calculated, which could alter the classification for many commonly shipped goods.
SMBs are especially vulnerable to such updates due to their limited access to advanced logistics systems. Many still rely on manual processes, including email-based order submissions that may lack accurate classification details. Automated classification tools now offer a way to bridge this gap.
According to C.H. Robinson, its AI tool is currently processing around 2,000 shipments per day. For first-time freight types, classification takes approximately 10 seconds, dropping to about 3 seconds after the system has learned the freight profile. Automation rates for LTL orders have reportedly increased from 50% to over 75% with this tool.
Shippers are encouraged to ensure accurate freight specifications, such as dimensions and weight, are included when submitting orders. These figures are essential for both human and automated systems to correctly classify freight. Tools such as dimensioners are available to help businesses capture precise data, potentially reducing the risk of misclassification and associated penalties.
As SMBs contend with broader economic pressures, including supply chain disruptions, tariffs, and rising operational costs, the NMFC updates present an additional complexity. However, by leveraging automation tools and ensuring proper data input, businesses can minimize the impact of these changes on their shipping operations.
For more information:
Leanne Lindseth
C.H. Robinson
Email: [email protected]
www.chrobinson.com
