For shippers of small packages, choosing the optimal box size and streamlining the packing process is becoming an increasingly important consideration when trying to drive down transportation costs!
As of 2015, both FedEx® and UPS® adjusted their pricing strategy for small package shipments by adding Dimensional Weight criteria to the existing weight calculation for all packages measuring 3 cubic feet or less. This announcement placed a significant impact on all shippers that move these types of packages. Through this White Paper, you will understand the impact and you will also learn about the steps that can be taken to help mitigate the impact for your organization.
Effective January 1st, 2015 for FedEx® and December 29th, 2014 for UPS® both carriers announced that they will apply Dimensional Weight (DIM) pricing on all ground packages. Up until then, these carriers only applied the DIM price model to ground packages with measurements greater than or equal to three cubic feet, or those that are categorized as air or express shipments. This change implied that the cost of shipping any package will be based in part on the package’s volume or in other words, the amount of space the package takes up on the truck. Continue reading “Understanding Small Parcel Carrier pricing!”