If you order any ground shipments like the majority of people in this country, you may want to pay attention. Beginning 2015, UPS and FedEx will begin charging by size and not just by weight. Currently for any ground shipment of a packaging size less than 3 feet, UPS and FedEx charge by weight only. Going forward, all packages will be priced via dimensional weight.
Dimensional Pricing History
Shipping costs have historically been calculated on the basis of gross weight in kilograms or pounds. By charging only by weight, large lightweight size packages become unprofitable for freight carries due to the amount of space they take up in the truck/aircraft in production to their actual weight. Thus a change needed to be made, and the answer became dimensional pricing.
Carriers will begin using Dimensional Weight in 2015.What is Dimensional Weight?
Dimensional weight reflects the density of the package (the amount of space a package occupies) in relation to its actual weight. Dimensional weight is (also known as DIM Weight), volumetric weight, cubed weight, etc.
It works by:
- Freight carriers compare the actual weight to the dimensional weight and the greater of the two will be used to calculate your shipping charges.
- Dimensional weight is calculated as (Length x Width x Height) / (Dimensional Factor). Measurements can be made all in inches or all in centimeters.
- Dimensions are always rounded up. So for example, if your measurement is 1-1.49, you would round to 1 lb., if 1.5 – 1.99, the measurement would then be rounded up to 2.
UPS and FedEx are both proposing to change the Dimensional factor (DIM) for ground shipping currently at 194 to a factor 166. By changing the Dimensional factor (DIM) to 166 this will impact customers significantly by increasing shipping costs.
How to Calculate Dimensional Weight
The first step to calculating your dimensional weight is to measure the length, width and height of your package in inches. Make sure to use the longest point on each side of your package and take any budges or inconsistencies in consideration of each measurement
If the resulting number is greater than the physical weight you use the “dimensional weight”. Whichever number is bigger, the actual weight or the above calculation, goes in to the price table.
3 lb box with a size of 10” x 10” x 10”
Current ground shipment = 3 lb rate
New dimensional weight:
(10 x 10 x 10) / 166 = 6.02
New pricing model will charge at the 6 lb rate
In conclusion, it seems that with changes being made regional shippers maybe utilized more than ever instead of UPS and FedEx. Postal flat rate boxes use may increase greatly due to the fact that since small items being shipped will be effected. This will then drive down the sizes of boxes. By knowing all this information money and time can be saved when shipping small items.
Considerations to help avoid increased shipping charges:
- Can your product be shipped in a smaller box?
- Is bundling your products together a possibility?
- Are there alternative packaging commodities in which you could ship your products? Mailers?
- Does your product warrant a package redesign?
- Would returnable packaging work within your processes?
