Most shippers’ top concern about the LTL trucking classification overhaul coming this summer is how it will affect their costs.
The short answer? It depends on the density of the shipment, so recording weight and dimensions becomes key.
Once the National Motor Freight Classification system is updated in July, some shipments will become more expensive, some will retain the same rate, and others will become less expensive.
“It is the biggest changes in classification in the history of classification,” said Joe Ohr, COO of the National Motor Freight Traffic Association, in an interview.
Shippers should talk to their carriers and third-party logistics providers for specifics about how the classification overhaul will affect their costs. But to help navigate the upcoming changes, Trucking Dive pulled together a brief overview of how various shipment costs will be adjusted under the new system.
What will get more expensive?
Costs for the lightest and least dense shipments will soar.
As LTL carriers are primarily paid by the weight, that’s intended to account for the space they take up on a carrier’s trailer without much weight.
The price increases will affect shipments with densities lower than 4 pounds per cubic foot, according to a white paper published by SMC³.
Less dense shipments to see shipping costs rise
What will get less expensive?
The classification code shift will reward industrial and other trucking customers that typically ship heavier freight with savings.
Shipments between 4 and 6 pounds per cubic foot, and those heavier than 8 pounds per cubic foot, will become less expensive under the new system.
More dense shipments to see costs fall
What will stay the same?
Some shippers will pay the same as they do now.
The cost for shipments with a density between 6 and 8 pounds per cubic foot should remain the same.
