Dimensional Shipping becomes mandatory

Dimensional Shipping becomes mandatory

9qlzgtfkStarting January 1st, 2015, FedEx will be making dimensional shipping mandatory. This means FedEx will be applying dimensional weight pricing to all ground shipments. UPS has also followed suit with their announcement to use dimensional weight pricing on all ground shipments and will begin its new rates on December 29, 2014. Currently for these carriers dimensional weight pricing is calculated on packages over 3 cubic feet, but effective January 1, 2015 any sized ground shipments will be priced using dimensional weight.

Dimensional weight pricing or DIM is calculated using a formula that takes into account the dimensions/volume of the package. (L x H x W divided by 166 = Dimensional Weight).

UPS and FedEx are making this change because their delivery trucks typically run out of space long before they exceed weight limits. This is going to cause an increase in shipping cost but also force businesses to be as economical as possible when packaging products in an attempt to offset these changes before passing along increases to their customers.

(Before 1/1/15)

Example 1
  • Package Dimensions 30″ x 12″ x 12″
  • Package weight 5lbs

Note: Since dimensions equal 4320 cubic inches and are below 5184 cubic inches (3 cubic feet) dimensional weight was not calculated (This is a typical parcel pre- 1/1/15), in the following example DIM will be used.

(After 1/1/15)

Example 2
  • Package Dimensions 30″ x 12″ x 12″ (= 4320)
  • Dimensional Weight 26lbs (4320/166 = 26)

Note: After 1/1/15 the package in example 1 would be calculated using DIM therefore it would be priced as a 26lb package instead of 5lbs. The less than 3 cubic feet rule will no longer apply to ground packages.

Follow this link to a handy DIM calculator that will give you a good idea of before and after prices.
http://www.sourceconsulting.com/fedex-ups-ground-dim-calculator/

Sources,
http://news.van.fedex.com/fedex-announces-pricing-changes
http://www.bloomberg.com/news/2014-06-17/ups-follows-fedex-in-basing-prices-on-size-not-weight.html
http://www.forbes.com/sites/robertbowman/2014/08/19/with-fedex-and-ups-rate-increases-looming-shippers-explore-their-options/

Note: Special Thanks to Zoy Team Member Donald Sawyer for researching and summarizing this issue.

2016-11-04T11:52:19+00:00

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