Consumer goods manufacturers should be prepared for the final NMFC updates of 2020.
These classification changes are scheduled for the end of the month, as the National Motor Freight Traffic Association (NMFTA) has announced the updates will go into effect on December 19.
While the next scheduled changes do not specifically affect food and beverage vendors like the first two updates of the year, they will require certain CPG shippers to be cognizant of classification changes.
Along with changes to the classification of electronic equipment, building materials, toys, and clothing will be among a group that will be affected by the update.
Vendors should be aware of these changes and how they could reshape their shipping operations.
A simple NMFC class change could spell issues for your LTL transportation operation if not adequately prepared for. Let’s look at what will shift.
NMFC Updates for December 2020
The changes set to take effect this week are the final of three annually occurring reclassifications that the NMFTA makes annually.
The board receives appeals and submissions, which shape the rescheduling decisions that happen every four months.
Here are the scheduled updates:
Electronic Equipment Group
- New Item – NMFC 61450
- Controllers, not otherwise indicated (NOI), including Motor Controllers, Switchboards, or Switchboard Sections. Class will be packaging related, as well as density-driven.
- Canceled Item – NMFC 61480
- Controllers or Controller Parts, NOI.
- Canceled Item – NMFC 63150
- Switchboards or Switchboard Sections.
- NMFC 61700
- Item being updated to include provisions from item 61270 (Chargers, battery), which is being canceled as a result.
- NMFC 63360
- Toasters will be at class 150 instead of 100.
- New Item – NMFC 123650
- Unit Coolers, commercial or institutional. Class will be based on greatest length, as well as density.
- Canceled Item – NMFC 123310
- Cooling or Freezing Machines, NOI.
- Canceled Item – NMFC 123315
- Cooling or Freezing Machines, used.
- NMFC 115840
- Naming Cash Register or Parts, NOI is being canceled with all provisions moved to NMFC 116030
- Class will then be subject to full eleven sub density scale.
Paper Articles Group
- NMFC 154360
- Tape, sealing or masking, with adhesive. The current single class rating will be replaced by a two-tier density scale.
Tools Or Parts-Named Group
- NMFC 185910
- Shears, pruning, or plant cutting, other than power operated. The current single class rating will be replaced with density-driven classes, with breaks at 6 and 10 PCF.
Building Materials Group
- NMFC 35350
- Shades, Shutters or Blinds, exterior, is being amended from the current eleven sub-density scale to classes based on greatest length and density.
- Canceled Item – NMFC 35343
- Shades or Shutters, exterior, vertical rolling, plastic, etc. All provisions moved under NMFC 35350.
- Canceled Item – NMFC 37110
- Shutters, door or window, etc. All provisions moved under NMFC 35350.
- Canceled Item – NMFC 37120
- Shutters, door or window, etc. All provisions moved under NMFC 35350.
- Canceled Item – NMFC 37550
- Blinds or Shutters, door or window, etc. All provisions moved under NMFC 35350.
- NMFC 34820
- Joints or Seals, pavement, including Expansion Joints or Seals. This item is being amended from the current class structure based on the material the item is made from, to a greatest dimension and density scale classification.
- NMFC 80240
- Will now encompass all types of materials. Rather than the current separation for steel, wood, etc. Class will be density-driven on a three-tier scale.
- Canceled Item – NMFC 79220
- Cabinets, filing (Filing Cases), steel and fiberboard combined, etc. All provisions moved to NMFC 80240.
- Canceled Item – NMFC 80250: This item was reserved for steel filing cabinets. All provisions moved to NMFC 80240.
- Canceled Item – NMFC 80270: This item was reserved for wooden filing cabinets. All provisions moved to NMFC 80240.
- Canceled Item – NMFC 84150
- Equipment, toy train, electric, etc. All provisions of this item are being moved under NMFC 8420, for Games or Toys, viz. As such, a full 11 sub density classification is applicable.
Automotive Parts Group
- New Item – NMFC 17810
- Air Heaters, including Windshield Heaters, or Air Conditioners. Class will be determined by a three sub density scale.
- Canceled Item – NMFC 18850
- Heaters, including Windshield Heaters, or Air Conditioner. Provisions now subject to the newly created item above.
- NMFC 49910
- Covering Gloves or Mittens, will be amended from the current single-class rating, to a two sub-density-driven classification. This item will also be updated to include provisions from canceled items.
- Canceled Item – NMFC 49900
- Gloves or Mittens, fur. All provisions moved to NMFC 49910.
- Canceled Item – NMFC 49905
- Gloves or Mittens, hanging on racks or stands. All provisions moved to NMFC 49910.
Sign Posts, Poles, Brackets, or Bases.
- New Item – NMFC 161130
- Posts or Poles, sign, or Sections thereof, NOI, with or without bases; Sign Posts or Pole Bases, NOI; or Sign Brackets. Classifications under this new item will be determined by greatest length, as well as density. This item will include provisions of the following canceled items:
- Canceled Item – NMFC 96740
- Sign Brackets or Standards, NOI
- Canceled Item – NMFC 106340
- Posts or Standards, sign, or sections thereof, etc.
- Canceled Item – NMFC 106840
- Sign Bases
Drawing Instruments, Optical Goods or Scientific Instruments Group
- NMFC 57940
- Lenses, optical, NOI: This item is being amended from the current two sub-classification, based on the lens finish, to a single class 85 rating.
- NMFC 50227
- Hazardous variations of this product type will no longer be subject to this NMFC item. The classification will depend on the type of hazard class the product is required to bear placards for.
Iron or Steel Group
- NMFC Item 104030
- Anchors, building, etc. Class is being increased to 70 from the current 50.
- NMFC 44210
- Canceled as obsolete – Cyanides, crude, NOI (Crude Cyanogen Salts, NOI), other than toxic or poison.
Why Are NMFC Changes Important?
The NMFTA routinely performs NMFC reclassifications. They can but should not disrupt your transportation function. It is essential to identify what the changes will be and if a product used anywhere along your supply chain will be affected.
There are instances in which your finished product may not be part of the scheduled changes, but a key ingredient that your operation uses is.
These instances can translate to higher transportation costs of that ingredient, which can substantially impact your spend and cause issues throughout your operation.
The best counter to any NMFC reclassification is preparation, as the NMFTA announces these updates well in advance.
Planning is the key to successfully mitigating supply chain disruption and controlling costs.
Incorrectly classified orders can add up to substantial accessorial fees, which can impact your bottom line.
Work with a Logistics Solutions Provider to Navigate NMFC Changes
While this information is publicly available, it can sometimes be difficult to sort through and apply to your operation. Zipline Logistics’ specialized operational teams can assist you in understanding your products’ class and best LTL shipping practices.
We can also ensure that you get the most competitive prices. We source our vast less-than-truckload carrier network and provide volume discounts. By implementing best logistics practices and utilizing competitive rates, you can reduce overall spend while increasing performance.
Our team of CPG logistics experts leverages retail expertise to find you the right LTL carrier and keep your customers happy. See the difference working with Zipline can make.
The post Latest NMFC Changes Set to Take Effect on December 19 appeared first on Zipline Logistics.