LTL freight overhaul: NMFTA’s Keith Peterson explains changes to classification system

The less-than-truckload (LTL) freight industry is undergoing a major transformation, and shippers need to prepare. On July 19, 2025, the National Motor Freight Classification (NMFC) system will implement its most comprehensive update in quite some time, shifting from a commodity-based framework to one focused on density-based classification.

Keith Peterson, director of operations at the National Motor Freight Traffic Association (NMFTA), joined the Talking Supply Chain podcast to explain what the the overhaul means for the organization and those involved in LTL freight shipping.

 “The NMFC has actually been around for about 70 years now,” Peterson said. “What it really is is a standard for identifying and grouping commodities based on four key transportation characteristics: density, handling, storability, and liability.”

This summer’s changes will consolidate over 2,000 items and eliminate redundant commodity listings.

NMFTA's Keith Peterson explains classification changes

“We recognized commodities can change over time… so we decided to put it on a full-scale density system,” Peterson explained. "One of the main goals was to bring the classification up to date with how commodities are transported today."

This transformation won’t just simplify the system—it’s may also reduce billing disputes. Historically, shippers relied on outdated codes passed down from previous employees. “There’s the sticky note on the side of the monitor … that has an item number and class on it,” Peterson joked. “It could have changed a couple of times since that sticky note was put on the side of the computer.”

To help the industry adjust, NMFTA has launched a suite of support tools, including GetClassification.com, ClassIT+, and expanded training programs.

“We’re building APIs into this so people can keep up to date,” said Peterson. “Even if you’re not a member… we have an interpretations department that will work with you and provide the needed information.”

Importantly, there are no penalties for shippers who fail to update their classification immediately. However, Peterson urged proactive planning.

“You need to really understand how your freight is being prepared for shipment… and know your item number,” he said. Shippers are encouraged to reassess their packaging to ensure they’re not “shipping air” and to improve load efficiency.

Peterson emphasized that shippers risk misclassification and disputes if they don’t update their systems. He urged shippers to review their current item numbers, measure and weigh shipments accurately, and utilize resources like GetClassification.com to prepare.

“One of my main things over the past year was really to open up the doors on how changes are made and what we do here,” he concluded, adding that NMFTA’s density-first strategy will continue to evolve in future dockets.

Peterson emphasized that this is not a one-time change.

“We’re making density the primary characteristic… and there are more items and generic headings to go through,” he said, hinting at future updates. Still, the July 19 changes represent a major leap forward in modernizing freight classification.

“This docket is really the largest we’ve ever put out,” Peterson said. “It had 99 proposals… affecting over 2,000 items. It was a huge one.”

As the freight world shifts, so must the tools and systems that keep it moving. For shippers, the message is clear: review your data, retrain your teams, and embrace the technology now available to navigate the new NMFC landscape.

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