Dimensional Weight – The Pricing Parameter You Need To Deal With
Your shipping costs would rise if you ship lightweight items that occupy more space. As announced by UPS and FedEx on different occasions, the customers employing FedEx ground, UPS ground and UPS standard for Canada shipping will be charged based on dimensional weight. It has been a year since these changes in price took effect. Nevertheless, the shippers still seem to be struggling in coping with the changes.
Since the term ‘Dimensional Weight’ has not been in use before the announcements, most of the people are still unaware about it. Dimensional Weight is all about the volume of package rather than its weight. In other words, the cost of a package is now calculated based on space it occupies rather than weight it possesses.
The calculation of dimensional weight is done by measuring the package’s length, width and height. The figures are rounded up in whole numbers. The total of this calculation is then divided by dimensional factor which is differently defined for different services; for instance 166 for UPS and FedEx domestic shipments and 139 for UPS and FedEx international shipments. The following image by UPS provides illustration.
The reason for charging methods shifting
Only the carriers can provide better answer in this regard. A press release by UPS states, “recent ecommerce shipping trends have resulted in a decrease in package density. This trend causes cargo space to be less efficiently utilized, resulting in an increased cost per package.
The company believes that as a result of the dimensional weight pricing method, more shippers will seek to optimize their packaging practices. These efforts will reduce excess packaging materials and overall package sizes, leading to related reductions in fuel use, vehicle emissions and transportation costs.”
So, the main purpose charging this way is just the better optimization of package. It may be a little worrying for the companies that ship lightweight items, but shipping companies never shut the doors for negotiations on prices.
The ways you can save money on shipping
· You can optimize packaging for lightweight and larger items. For instance, the size of the cardboard boxes you use to send your products have dimensional size of 11 x 11 x 11. If you optimize the packaging supplies, e.g. cushioning, and successfully adjust that item in a 10 x 10 x 10 box, you will be able to cut a reasonable amount of the shipping costs.
· If you are a frequent user of any shipping company, you can reevaluate the contract. Being a regular customer provides you with an opportunity to ask the company for discounted rates.
· If UPS and FedEx do not seem appropriate options after you reduce the dimensions, make good research and try to find out other shipping services with reasonable rates.
