LTL carriers adjust pricing as NMFTA classification changes near
As common carrier LTL providers publish their Q4 earnings, the data shows a consistent theme of declined revenues, shipment count and tonnage. The only exceptions we have seen so far are carriers that had aggressively expanded their service area in 2024 through acquisition or opening new terminals.
To address this, carriers have focused on managing costs and providing timely pricing renewals for their existing business. This is expected to continue, but due to the length of this freight cycle carriers are providing strategic pricing adjustments and competitive RFP responses to secure new business within their networks. As always, the underlying freight characteristics will be the determining factor in how carriers assess opportunities.
Preparing for LTL Class changes
In 2025, the National Motor Freight Traffic Association (NMFTA) is set to overhaul its freight classification system, specifically for commodities where density is the primary freight characteristic. These changes will standardize the classification process for density-based items and bring cost efficiency, as a wider class system will result in more accurate freight pricing. The NMFTA committee recently met on March 3rd to review proposals to the changes and will release the final docket soon, but changes will not go into effect until July 19, 2025.
Be sure to review freight characteristics for impacted commodities and ensure pricing programs, especially those with freight all kind (FAK) exemptions, are addressed to account for any changes. Reach out to your C.H. Robinson representative to actively assess the impact of these changes. Review full details on the NMFTA website.