July 2025 LTL Updates Shippers Should Know
LTL shippers in the U.S. and Canada are navigating a shifting landscape this July. In addition to rate trends and reclassification changes, new developments have emerged that could impact shipping performance and costs. Here's what you need to know and how to respond.
1. NMFC Reclassification Will Be Ongoing
The major update to the National Motor Freight Classification (NMFC) system begins July 19 with the rollout of a new 13-tier density-based rating model. However, new information confirms that additional reclassifications will continue throughout the rest of 2025.
That means this isn’t a one-and-done adjustment. Even if you’ve updated your codes for July, more changes are coming.
Takeaway: Schedule regular NMFC reviews and classify new products with care. Ongoing updates may impact LTL quotes and claims.
2. Canada-U.S. LTL Traffic Faces Policy and Weather Shifts
Several recent changes are affecting LTL service across the Canadian border:
- Tariff adjustments: Tariffs on steel and aluminum shipments between the U.S. and Canada began phasing out July 1 as part of a bilateral agreement. This may lower costs for freight tied to metals manufacturing.
- Operational delays due to heat: Record heatwaves across Ontario and Quebec in late June forced some terminals to restrict or reschedule daytime operations. Carriers are adjusting linehaul schedules and may experience short delays in early July.
- Faster border clearance via AI: Canada Border Services Agency (CBSA) has begun rolling out AI-powered scanners at key commercial crossings. These scanners can accelerate clearance times, but only if HS codes and documentation are accurate.
Takeaway: Factor in potential delays from heat-related changes. For cross-border freight, ensure documentation is clean to benefit from faster AI processing.
Sources:
- Adcom Worldwide | Adcom's Freight Market Update: June 19, 2025
- DHL Express Canada Striking Workers Tentatively Agree on Labor Deal
How to Stay Ahead in July
| Focus Area | What’s Happening | Shipper Action |
|---|---|---|
| NMFC Updates | More changes beyond July 19 | Schedule ongoing freight class audits |
| Canadian Tariffs | Lower steel/aluminum duties starting July 1 | Renegotiate lanes where possible |
| Heat Delays in Canada | Hot weather pausing terminal operations | Monitor routing and communicate lead times |
| Border AI Scanners | Faster clearance for properly documented shipments | Validate HS codes and commercial invoices |
Bottom Line
The LTL market is not standing still. Between evolving classifications, weather-driven interruptions, and tech-enabled customs changes, July brings plenty of moving parts. Build in flexibility, stay updated on regulatory shifts, and be ready to adapt as more NMFC updates and border technologies come online.
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