FedEx and UPS started the New Year (January 2015) by changing how they calculate shipping costs. Rather than evaluating the cost to ship a package using weight only, FedEx and UPS are using dimensional weight instead. Experts estimate this change could cost shippers in excess of $1 billion http://www.scmr.com/article/dimensional_weight_a_game_changer_for_many_shippers.
Under the old rules, the weight of a package determined the price. In other words, you could ship a small flash drive in a large box and pay only for the weight of the flash drive and packaging material – all of the extra empty space was free. Under the new rule, you’ll pay for that free empty space because price is based on dimensional weight, not actual weight.
What is dimensional weight?
To find dimensional weight, multiply the length by width by height of the box in inches, and divide by 166 for domestic shipments or 139 for international shipments. If the dimensional weight is greater than the actual weight of the package, carriers will use the dimensional weight to calculate the shipping price. If the actual weight is more, then they’ll use the actual weight. Either way, you’re paying the highest shipping price.
Is this going to cost you more money?
If you use the “one size fits all” approach to packaging and therefore ship a lot of “air,” it could hit your pocketbook and your bottom line. It all depends on the weight of your items and how much empty space you have in your packaging.
What can you do?
Use boxes that fit the exact size of your items. Can’t find the perfect size? Call us. We have more than 1,100 cardboard boxes at your disposal. For customers needing specific dimensions, we can create custom-sized cardboard boxes at our facility.
Be sure to do your homework and compare prices for the most cost-effective carrier. FedEx and UPS aren’t the only carriers of choice. USPS still charges by weight http://postcalc.usps.gov/default.aspx.
Have more questions about the new shipping rules http://www.reuters.com/article/2014/12/29/us-ups-fedex-pricing-idUSKBN0K71BJ20141229? Call one of our packaging professionals today!