Freight Industry Embraces Change Without Disruption

When the National Motor Freight Traffic Association (NMFTA) announced earlier this year that it would be enacting more than 6,000 changes to its freight classification system, the industry braced for disruption. Analysts and logistics operators anticipated confusion, delays, and disputes between shippers, brokers, and carriers — the kind of friction that could slow down the U.S. supply chain.

Yet, just over three months after the new system took effect on July 19, the transition has been hailed as a success. “All the feedback we’ve gotten is that they were prepared for the worst,” said Joe Ohr, Chief Operating Officer of NMFTA, in an interview at the organization’s cybersecurity conference in Austin. “And it turned out to be a non-event.”

The overhaul affects the National Motor Freight Classification (NMFC) system — the industry standard for defining and pricing commodities moved via Less-than-Truckload (LTL) carriers. Each freight type receives a classification based on factors such as density, stowability, handling, and liability. The changes, driven largely by the need for greater clarity and standardization, were the most comprehensive update in the system’s modern history.

Shippers Exceed Expectations

What surprised industry executives was not the scope of the reform but the readiness of the market to adapt. According to Ohr, many feared that shippers — particularly smaller firms less familiar with classification codes — would struggle to adjust to the new system.

However, that concern never materialized. “The shippers were more educated than what the carriers expected,” Ohr said. “The communication was really good, and the shippers were on top of it.”

The LTL sector, which includes thousands of carriers and millions of annual shipments, relies on precise classification to determine rates. Misclassifications can lead to costly disputes. But according to NMFTA, carriers and brokers reported far fewer disputes than anticipated. Ohr credited years of outreach, documentation, and digital training as critical to the successful rollout.

The transition also revealed a deeper shift within the freight industry — toward data-driven logistics. Many shippers have begun investing in density-based measurement technology, aligning with the industry’s new emphasis on volume and mass rather than subjective product characteristics.

The Shift Toward Density and Precision

At the core of NMFTA’s reform is a move toward density-based freight classification, a method that calculates shipping categories by measuring a pallet’s weight relative to its volume. This system, Ohr explained, simplifies pricing while improving transparency between carriers and customers.

“You measure the pallet, you measure the freight, and whether the shipper measures it or the carrier measures it, it’s going to be the same,” he said. “A lot of things are going density now, and the shippers are investing in density-based technology.”

This shift aims to reduce the industry’s reliance on Freight All Kinds (FAK) — a common practice in which diverse products are grouped under a single tariff. While FAK simplifies logistics, it often obscures cost accuracy. The new system encourages specificity and standardization, aligning freight pricing more closely with actual space and weight usage.

A Model for Industry-Wide Digital Transition

The success of the NMFTA overhaul could serve as a model for other logistics sectors confronting digital transformation. By combining data transparency, collaborative communication, and preemptive education, the organization avoided the pitfalls that typically accompany major structural changes.

For shippers and carriers, the transition also underscores the growing importance of technology integration in freight operations. As logistics networks become increasingly digitalized, accurate data collection — from freight density to real-time tracking — will become the cornerstone of competitive advantage.

Looking ahead, NMFTA’s classification reform may mark a turning point for LTL logistics. With improved efficiency, fewer disputes, and data-backed standardization, the U.S. freight market is demonstrating that even legacy systems can evolve — quietly, effectively, and with surprising precision.