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Dive Brief:
- The first phase of an overhaul of the National Freight Transport Classification will come into force in the 1st quarter of 2025, announced the National Association of Freight Motorists.
- The changes are designed to simplify the classification system by using a standardized approach to LTL pricing based on density, handling, stackability and liability.
- NMFTA plans three listening sessions for changes next month. The first will be for LTL companies on August 6, the second for third-party logistics providers on August 7, and the last for shippers on August 8.
Dive Insight:
These are not minor changes to the rating guide that LTL companies use to set their rates.
As many as 3,500 species in one category are expected to be transferred to 13 subcategories, NMFTA estimates.
In addition to simplifying sorting, the changes also seek to improve the user experience and increase efficiency by reducing the misclassification of shipments.
“We also focused on improving the user experience to make it easier to both use and understand NMFC’, said Keith Peterson, director of operations for NMFTA, the statement said.
As 2024 progresses, the process is set to become more intensive, informative and comprehensive, NMFTA said.
“Both NMFTA and NMFC expect the changes to streamline workflows, improve communication and visibility, and increase overall satisfaction for all involved,” NMFTA said.