Preparing for 2025 Freight Class Changes

LTL shipping costs hinge on one core concept: freight class. On July 19, 2025, NMFTA’s Docket 2025‑1 will convert over 3,000 commodity codes—more than 500 of which are foodservice equipment—from “static” classes (like all refrigeration at Class 150) into a density-only system. This change means each item’s pounds‑per‑cubic‑foot (PCF) will largely determine its new freight class (50–400), potentially shifting rates upward or downward over the following nine to twelve months.

In this in-depth guide, you’ll find:

• A straightforward breakdown of PCF-based freight class and what it means for your shipping costs
• Real-world examples showing potential rate changes for common refrigeration units
• Practical advice on working with carriers and 3PLs to minimize billing surprises
• An overview of how Beedash and Kuehne+Nagel integrate density estimates into your quoting process

Freight class is a numeric code (50–500) carriers use to price LTL shipments. It reflects four factors:

• Density: Pounds per cubic foot—denser freight ships more efficiently and usually at lower per‑hundred‑pound rates.
  
  Important: The dimensions used to calculate PCF—and therefore your freight class—are the final, packaged dimensions of the shipment as it leaves your facility, including any pallet or crate. Carriers do not measure the product itself; they measure the full shipment footprint.
  
  
• Handling: Level of care or special equipment needed for loading/unloading.
  
  
• Stowability: How neatly items fit alongside other freight inside a trailer.
  
  
• Liability: Risk of damage, theft, or hazard associated with the shipment.

Carriers bundle these characteristics into a single class that feeds into rate tables, discount structures, and surcharges. Today, many categories—including all refrigeration—fall under a static class (Class 150), regardless of individual size or weight. While convenient, static classes can mask real cost differences between, say, a compact undercounter unit and a large reach‑in cooler.

Effective July 19, 2025, NMFTA will reclassify specific commodities as density-only, dropping handling, stowability, and liability from their calculation. Refrigeration equipment will join a new density‑based scale of 13 classes (50–400) determined solely by PCF.

Table Source: Kuehne+Nagel internal analysis.
Note: Actual changes will depend on carrier, lane, and negotiated discounts.

Key Points:

• Accuracy Is Critical: Wrong or missing weight/dimension data could default shipments into higher classes.

• Potential Rate Swings: Lighter or bulkier items may see noticeable cost increases; denser products may ship more economically.

• Transition Window: Carriers have up to twelve months to apply new tariff rates, so you may see rates change gradually.

Side Note: Impact on Mixed Commodity Pallets
Under the new density-only system, building mixed pallets becomes more complex and potentially more expensive.
Freight class will be calculated based on the total shipment’s PCF, which means that combining high-density and low-density items can inadvertently raise the overall class—and the cost.

Carriers apply a “Mixed Commodity Rule” that often uses the lowest-density (i.e., highest class) item on the pallet to determine the freight class for the entire shipment. As a result:

• Mixing dense equipment (like undercounter refrigerators) with lightweight accessories (like plastic bins) on the same pallet could raise the rate class dramatically.

• Carriers do not unpack pallets to assess individual items—they use the scanned dimensions and weight of the full pallet.

Rather than relying solely on internal estimates, dealers should engage proactively with the carriers and third‑party logistics providers (3PLs) who will apply these new density rules:

• Share Your Data: Provide accurate SKU weight and shipment dimensions (including pallets or packaging) to your carriers’ dimensioning teams or 3PL partners.

  Request Test Quotes: Ask for sample rates under the new density-based tariff for your top 20–50 SKUs.

• Clarify Exceptions: Discuss how carriers will handle anomalies—oversized pallets, irregular shapes, or equipment requiring pallet modifications.

• Set Dispute Protocols: Agree on documentation requirements (photos of dimensions, packing lists) to support lower-than-default classifications.

Proactive communication can help avoid billing disputes and unexpected rate adjustments during the nine‑ to twelve‑month rollout.

Why Kuehne+Nagel?
As a Gartner-recognized leader in global 3PL services, Kuehne+Nagel (K+N) brings unmatched freight classification insight to the foodservice equipment space. Their contributions help ensure you’re estimating freight costs using real-world data validated by LTL carriers.

• Dimensional Scanning Collaboration
  Dealers supply weight and dimension data for each SKU, which K+N’s network validates through standardized scanning procedures at terminals.

• Tariff Expertise
  K+N translates NMFTA’s density-only freight classes into carrier-specific logic, ensuring your PCF (pounds per cubic foot) data aligns with how freight is actually rated.

• Live Rate Engine APIs
  Beedash has integrated with K+N’s real-time APIs to utilize product dimensions from products in your quotes and orders and return class estimates that reflect how carriers will price your shipment under the 2025 NMFC changes.

Beedash doesn’t just surface freight estimates — we automate and embed them where you work. As the operational layer between your product data and K+N’s freight engine, Beedash empowers dealers to quote faster, more accurately, and with far less administrative friction.

Here’s how we’ve prepared dealers for the July 2025 changes:

• Vendor Data Collaboration (WIP)
  We’ve proactively requested detailed shipment weight and dimensions from manufacturers. As this enriched content flows into our Corestack PIM, your freight logic becomes more precise—automatically.

• Real-Time Freight Class Estimation in Quotes & Carts
  Use Beedash’s quoting tool and eCommerce checkout to build and send shipment-level PCF data to K+N’s API. This returns density-based LTL estimations—removing guesswork at both quote and checkout stages.

• Catalog Updates at Scale
  Dealers can access product weight and dimension fields across their active product catalogs, ensuring their estimates are grounded in data—not assumptions.

Transitions this size often encounter:

• Data Mismatches: Scanner‑recorded dimensions may differ from your records, leading to reclassifications.

• Implementation Lags: Some carriers may take weeks to update rating engines with NMFTA’s new tariff.

• Manual Overrides: Manual review or proof submission may be needed to secure desired classes.

Keep detailed records—weight tickets, packing photos, communications—to support classification disputes and exceptions.

Looking Forward – No single solution cures all transition challenges. However, by understanding freight class fundamentals, collaborating with carriers/3PLs, referencing Kuehne+Nagel’s data, and leveraging Beedash’s preparation, you can reduce surprises and maintain clearer visibility into shipping costs as NMFTA’s new density-only rules roll out.