The LTL Classification Changes for 2025 are Overhyped

We are not moving to "density based pricing" next year.

LTL is NOT moving to density based pricing in 2025.

These are my thoughts & opinions only. Feel free to leave yours in the comments.

I think what is happening, practically, with the current NMFC class change campaign is a great thing - and a bigger step towards change than what we've seen in recent years.

It'll take a long time to shift the trajectory of what is this very large ship. Shippers wouldn't be ready for this overnight.


BUT. Fam. Lets call it what it is. A slightly bigger step than those previously taken - however not in a new direction.

Like most things centrally managed - the concept might be golden - however the execution and lack of awareness for downstream impact usually falls short.

I also want to dispel the notion I am continually hearing buzz and fly around the industry, which is that this is THE change. The big one. The move to density based.

"Oh - that thing I've heard about for 15 years? Yeah, this must be it."
"Oh, they must have finally done it - good for them."

Nope. Sure isn't.

Please remember this:

As long as there is a direct correlation between an LTL bill of lading and the specific classification code for that product (or it's family) - there is no true innovation here.

Is it change? Absolutely. There's going to be all kinds of pricing chaos
TONS of busy work. Got to re-align all of those juicy little FAK's with the new actual class breakdown. It's going to kick up a cloud of admin work, billing discrepancies and activity for really a whole lot of nothing.

Let's recap though: FAK's will still exist. Classification codes and commodities will still exist. And carrier pricing teams will be overrun with work. Sounds like nothing much changed.

This is a desperate grab for relevancy in a quickly changing industry.

As long as there is a single specific commodity code for a product shipped, or group of products shipped - we have not simplified anything. We are all overselling this as the path to simplification. It's not at all. Yes - after the dust settles it'll be a little less noisy and the standardized density scale for those commodities where it applies will be great.

It's extremely difficult for any organization to innovate out of who they are at their core.

I think it's time for the NMFTA to stop being the parents of the LTL industry and either lead or get out of the way with TRUE innovative solutions.

We need characteristics classification - not commodity. Way too granular for the pace of our evolving world.