The End of Freight Class? Why the Industry Is Moving Toward Dimensional Pricing

The LTL (less-than-truckload) shipping industry is undergoing a major pricing transformation—and if you haven’t already felt the impact, you will soon.

Traditionally, LTL rates have been based on the NMFC (National Motor Freight Classification) freight class system. This system categorized freight based on factors like value, liability, handling, and stowability. However over the past few years, LTL carriers have been steadily shifting away from this legacy approach. In its place? Density-based pricing—a model that prices shipments primarily on weight and cubic dimensions.

This shift is reshaping how SMBs think about packaging, warehousing, and transportation planning. Let’s break down what’s happening, why it matters, and how you can stay ahead.

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Why the Shift Is Happening

The freight class system, while long-standing, has several limitations:

• It’s complex and opaque. With over 18 different freight classes and thousands of NMFC codes, it’s easy for shippers to misclassify freight—leading to costly reclass fees and disputes.
  
  
• It doesn't always reflect true shipping costs. A lightweight but bulky item may occupy a disproportionate share of trailer space, yet be underpriced under the freight class model.
  
  
• It’s inconsistent. Two carriers might rate the same shipment differently based on class exceptions or internal rules.
  
  

In contrast, density-based pricing—also known as dimensional weight or “dim weight” pricing—relies on a much simpler formula:

Density = Weight ÷ Volume (cubic feet)

This approach gives carriers a clearer picture of how much space a shipment will occupy, allowing them to price more accurately and maximize trailer utilization.

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The Rise of Density Pricing: What the Industry Is Doing

Major carriers like FedEx Freight, UPS Freight (now TForce), XPO, and others have been rolling out density-based models over the last several years. Some have gone as far as eliminating freight class altogether for certain accounts or lanes. Others use hybrid models, where freight class is still technically required, but dimensional data is weighted more heavily in pricing.

A few key trends driving adoption:

• Increased use of dimensioners in terminals – Automated dimensioning tools make it easier for carriers to verify shipment density at scale.
  
  
• E-commerce growth – More small-parcel and oddly sized LTL shipments make freight class classification harder and less relevant.
  
  
• Desire for fairness and efficiency – Carriers want to ensure that shippers who consume more trailer space pay accordingly.
  
  

According to some estimates, over 70% of LTL shipments are now priced using density-based logic, even if freight class is still listed.

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What This Means for SMB Shippers

If you’re still thinking in terms of freight class, it’s time to reframe how you quote and plan shipments. Here’s what to expect:

1. Packaging Optimization Matters More Than Ever

Under the new model, bulky, low-density freight is penalized. Using oversized boxes or leaving extra void fill can drastically increase your cost per shipment. Right-sizing your packaging and reducing “dead space” can lead to significant savings.

2. Reweighs and Reclasses Are Changing

Rather than a reclass dispute, carriers may now use dimensioning equipment to calculate pricing based on actual size and weight. Since there’s less room to negotiate, accuracy is key.

3. Data Accuracy Is a Must

With density pricing, you’ll need to provide correct dimensions and weights up front—or risk billing adjustments. Investing in dimensioning tools or software integrations may be worth the cost.

4. Carrier Rate Shopping May Look Different

You might find that rates vary more by carrier than they used to, depending on how each carrier weighs dimensions vs. freight class. This makes it important to compare apples to apples—and potentially work with a 3PL or logistics partner who can help interpret pricing models.

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How to Prepare for the Transition

• Audit your current shipments – Are you using the correct box sizes? Are you shipping air?
  
  
• Talk to your carriers or 3PL – Ask how they’re handling freight class vs. dimensional pricing.
  
  
• Educate your warehouse teams – Picking, packing, and labeling accuracy now directly affects cost.
  
  
• Consider a packaging audit – Even small changes to your packaging or palletization strategy can lower freight spend under a density model.
  
  

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Ask Amware

The move toward density-based pricing isn’t just a passing trend—it’s a structural change that’s here to stay. For SMBs, that means adapting how you think about freight. The good news? With the right data, packaging, and planning, dimensional pricing can actually reward efficiency.

Amware can help you make sense of these changes—and even turn them into a competitive advantage.

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