New Dimensional Surcharges from UPS and Fed-Ex
Getting ready for New Dim Weight Charges
Fed-Ex and UPS recent announcement of new dimensional weight surcharges for parcels puts many parcel shippers under threat of significant price increases. Now more than ever, selecting the right size package will limit the impacts new dimensional surcharges will have on you shipping costs. Now more than ever it’s critical to ship parcels that minimize their size in transit.
Over the years, with the increase in parcel shipments for the carrier’s delivery networks, the lightweight shipments in larger boxes have created lopsided situations where they are filling up their truck and airplanes storage well before they reach their weight capacity. These rate increases will help put shippers on a diet or have them pay the penalties for their extra size.
Although both UPS and Fed Ex currently carry dimensional weight surcharges, or DIM weights, they currently start at a specific dimensional size (think about the size of a 17” cube) to start their dimensional weight penalties assessment. Both Fed-Ex and UPS currently assess the dimensional weight on larger sized packages. By 2015 UPS and Fed-Ex will reduce the threshold so that all parcels may carry some dimensional surcharges.
Now is the best time to examine your box styles and act to minimize the parcels size. Look closely at the range of box styles you’re using. trivia questions . Consider adding a few box styles to deal with the variety of different sizes you may need. Also consider changing the dunnage material to reduce the space necessary.
Consider alternative delivery services with different DIM, or no DIM surcharges. Postal consolidators may make delivery sense to replace the penalties on some larger parcels.
Also, for larger shippers like NFS, adding cubic scanning to the manifest systems can help determine best method of shipment. By measuring the parcels during the manifesting process, you give yourself the opportunity to select alternate carriers on the fly. NFS is preparing for these changes by bringing this technology to our packing stations.
Preparing now can help you avoid sticker shock during the changeover to dimensional weights.