NMFTA LTL Freight Code Update Spurs C.H. Robinson AI Tool
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C.H. Robinson has rolled out a generative AI agent to automate freight classification as the National Motor Freight Classification system prepares for major changes effective July 19.
The update to the NMFC will alter how less-than-truckload freight is categorized, affecting pricing and carrier planning. Misclassified freight can lead to inspections, delays and higher charges.
To reduce that risk, C.H. Robinson’s AI agent determines the correct class and code — especially for orders submitted via email, where shippers often omit or misstate classification details.
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NEW: National classifications for LTL freight are changing in July, and we've created a new AI agent that automates the process of determining how freight should be classified.
This tech will help shippers to smoothly transition to the new LTL system ➡️ — C.H. Robinson (@CHRobinson)
“Many LTL shippers are unaware or uncertain of the classification for their freight,” said Greg West, vice president for LTL at the Eden Prairie, Minn.-based company. “So we built an AI agent that determines the correct class and code for a shipment and assists another of our AI agents in turning that tender into an accurate order.”
The company — which moves more LTL freight than any other third-party logistics provider in North America and ranks No. 2 on the Transport Topics Top 100 list of the largest logistics companies in North America — has seen automation jump from 50% to more than 75% of LTL orders since deploying the tool.
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The AI agent classifies about 2,000 shipments a day. It can assign an NMFC code in about 10 seconds, or 3 seconds once trained on a freight type.
RELATED: C.H. Robinson Automates Freight Email Transactions With AI
“Unlike a person, the AI agent can handle hundreds of LTL shipments at once,” said Arun Rajan, chief strategy and innovation officer. “So far, that’s saving over 300 hours a day.”
The agent will update automatically to reflect the new NMFC standards. C.H. Robinson is encouraging shippers to ensure freight dimensions and weight are accurate and is offering discounts through dimensioner tech partners.
RELATED: C.H. Robinson Launches AI-Leveraged Load-Matching Platform
“Now with generative AI, the agents we’ve built are giving our customers an advantage,” said Michael Castagnetto, president of North American Surface Transportation.
C.H. Robinson ranks No. 20 on the TT Top 50 global freight carriers list.
