NMFTA will Hold Hearing in October on Potential Changes to Commodity Classification

All TIA members that arrange less-than-truckload or LTL freight should be aware that the National Motor Freight Traffic Association’s (NMFTA) Commodity Classification Standards Board (CCSB) will conduct a public meeting on Oct. 22, 2019 in Fort Lauderdale, Fla. to consider a number of amendments to the National Motor Freight Classification (NMFC). If approved, the changes would take effect on Jan. 4, 2020.

TIA members have made note of one proposed change included in the packet that would eliminate Item 6000 of the NMFC. Every cosmetic, pharmaceutical and chemical company in the U.S. takes advantage of the benefits of item 6000 when shipping LTL freight.

To view a full list of the proposed amendments, please click HERE.

The NMFC is a standard that provides a comparison of commodities moving in interstate, intrastate and foreign commerce. It is similar in concept to the groupings or grading systems that serve many other industries. Commodities are grouped into one of 18 classes – from a low of class 50 to a high of class 500 – based on an evaluation of four transportation characteristics: density, handling, stowability and liability. Together, these characteristics establish a commodity’s “transportability.”

By analyzing commodities based on the four transportation characteristics and ONLY based on those characteristics, the NMFC provides 3PLs, carriers and shippers with a standard by which to begin negotiations and greatly simplifies the comparative evaluation of the many thousands of products moving in today’s competitive marketplace.

The NMFC specifies minimum packaging requirements to ensure that goods are adequately protected and can be handled and stowed in a manner that is reasonably safe and practicable to withstand the normal rigors of the less-than-truckload environment. It contains various rules that govern and otherwise relate to the classification and/or packaging of commodities as well as procedures for the filing and disposition of claims, and procedures governing interline settlements. It also contains the Uniform Straight Bill of Lading, including its Terms and Conditions.