The NMFTA is overhauling the freight classification system with new density calculations, streamlined categories, and different class assignments. The carriers are calling it “modernization”, but we’re calling it what it is – a fresh opportunity to be hit with reclassification charges.
The carriers will audit more than before, looking for these changes to issue rebills. Carriers know shippers will be scrambling to stay on top of the changes.
How This Hits Your Bottom Line
Some of your freight will move to lower classes, saving you money. Some will move to higher classes, costing you more. But the real financial risk isn’t the class changes themselves – it’s the rebills that come in after being shipped and invoiced your customer.
Every misclassified shipment puts money directly into the carrier’s pocket. One incorrect NMFC code on your bill of lading, and boom – you’re hit with rebill charges.
What We’re Doing About It
Starting this week, we are thumbing through customer’s shipping profile to identify which commodities are most likely to change classes and which carriers are likely to take advantage of the situation. We’re reviewing product lists before July 19th so there’s little room for the carriers to take advantage of the changes. When the new rules go live on July 19th, we want you to be ready while your competitors are still figuring out what hit them.
What You Need to Do
Nothing. We’re handling the entire review process. No calls to schedule, no homework assignments, no time out of your day. Just email or call us if you would like a report or further information on the issue.
The Bottom Line
These carriers love rule changes because confusion equals revenue. Every “oops, wrong classification” is money out of your pocket and into theirs. We’ve been in this industry long enough to know standard industry practices, and we’re not about to let our customers become their profit center.
Your job is running your business. Our job is making sure these classification changes don’t become your expensive problem.
Questions before July 10th? Hit reply or call us 888-666-3203. You may have questions like “am I going to get a rebill?” or “how can I be ready?”, or if you just want to learn more, we’re here to help in any way we can.