New LTL freight codes give healthcare shippers an edge

Using the new LTL freight classification system to your advantage

Last summer’s changes to the U.S. less than truckload (LTL) freight classification system gave savvy healthcare shippers an opportunity to improve cost control.

The National Motor Freight Classification (NMFC) classes and codes are intended to provide accurate, detailed freight information to LTL carriers so they know how your freight will fit on their trucks and how much to charge. Shippers that conform to the new rules can have a cost advantage over competitors, because describing your deliveries correctly helps avoid costly delays and extra charges.

• If a carrier discovers your dimensions or freight classification are incorrect, inspection fees run $25 on average to cover their time for reclassifying it and reinvoicing you.
• Additional freight handling can lead to higher incidents of damage or loss.
• Carriers may argue the delivery was misrepresented. In severe cases, misclassification could be considered fraudulent, exposing the shipper to penalties.
• Freight held for inspection or because it doesn’t fit on the carrier’s truck as planned keeps your products from getting to market.

Accurate delivery data is also key for successful requests for proposals (RFPs). It gives the same freight details to logistics providers whether or not they have an established delivery history with you. It also enables carriers to present accurate cost projections for out-of-cycle increases or larger than expected increases at renewal time.

Important considerations for healthcare shippers:

• Most pharmaceuticals are now density-based items under NMFC item number 58770.
• Most dental, hospital, medical or surgical instruments, machines or supplies move under item number 56590.
• A small number of healthcare-related items were not included in NMFC item numbers due to significantly higher value or stowability issues.

Investing in a dimensioner to get the right length, width, height and weight of your freight so you can choose the right classification can pay for itself quickly. Keep in touch to your C.H. Robinson representative for assistance.

Pilot programme announced for faster cargo inspections

Delivery controlled substances, medical devices and high value medical equipment around the world every day, the healthcare industry is heavily reliant on supply chain security. Under a new programme launched by the U.S. Department of Homeland Security, healthcare companies may soon be able to take advantage of benefits such as reduced and priority cargo inspections and expedited release of cargo from ports of entry.

The pilot programme, starting in December and set to run for five years, will allow third-party logistics providers to participate in the Customs Trade Partnership Against Terrorism (CTPAT), providing a customs clearance process for eligible entities that voluntarily meet or exceed enhanced security screening requirements. C.H. Robinson is working to be included in the first wave of participants.

Alternative fuels on the rise in healthcare

Many healthcare companies are eager to reduce their carbon footprint, including cutting their transportation-related emissions. This means optimising supply chains through efficient route planning and item-level visibility but also using more and more alternative fuels.

A C.H. Robinson survey of approximately 1,000 carriers found that over 20% use environmentally friendly fuel or equipment. Of those surveyed, 59% of carriers reported using biodiesel, 31.5% use renewable diesel, 1.7% use compressed natural gas fuel and 1.1% use electric vehicles (EVs).

C.H. Robinson’s global network, which is audited to avoid double-counting, logged 2.33 million miles in 2024 using alternative fuels and EVs, helping customers reduce carbon emissions across their supply chains.

More stable U.S. trade policy creates optimisation window

Since mid-October, U.S. trade actions have shifted from escalation to relative stability, creating a planning window for shippers. The tariff truce between the United States and China gives businesses time to solidify mitigation strategies and sourcing diversification. This can include nearshoring and friendshoring, for instance to other Asian countries or North America.

Meanwhile, the U.S. government has lowered tariffs on goods from South Korea to 15% and an agreement in principle with the UK would lower tariffs on pharmaceuticals from that country.

Key factors in the coming weeks/months:

Tariff authority court case

The U.S. Supreme Court’s decision on whether the administration has the right to levy tariffs under the International Emergency Economic Powers Act (IEEPA) is expected in December or January. This could end or reshape tariffs and lead to refunds. However, it is an open question how timely or robust these would be.

Section 232 risks

Importers should expect continued investigations and tariffs on materials or products deemed important to national security. Certain pharmaceutical precursors are under review. Other likely targets include critical minerals such as rare earths and semiconductor materials and equipment.

USMCA review

The scheduled 2026 review of the U.S.-Mexico-Canada Trade Agreement has begun and is expected to result in sector-specific adjustments if the agreement is extended, amended or replaced next year. 

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