The NMFC code is required on the BOL because it directly influences how LTL freight is priced, handled, and protected. It's a critical piece of data that ensures regulatory compliance, pricing fairness, and claim accuracy.
When using external LTL or common carriers, the NMFC code is typically mandatory on the Bill of Lading because:
This includes FedEx Freight, Old Dominion, XPO, Yellow (when they existed), and others.
- Carriers bill based on freight class, which is tied to the NMFC code.
- It's needed for compliance with carrier tariffs and claims adjudication.
- It prevents reclassification charges or disputes.
- Most major LTL carriers refuse pickup or apply surcharges if the NMFC code is missing or wrong.
Internal (Private Fleet or Owned Carrier) — NMFC Code is Usually Optional, but Recommended
If you're using your own fleet or a dedicated internal carrier, the NMFC code is usually not required legally, because:
- You're not invoicing yourself based on freight class.
- There's no external entity needing to validate freight classification.
However, it’s still a best practice when:
- You want to standardize documentation (especially for audits or ERP integration).
- You also use external carriers sometimes and want to keep consistent BOL formats.
- You're planning to use a Transportation Management System (TMS) that handles both internal and external shipments and relies on NMFC codes for logic.
