UPS to Charge By Package Size

by | Monday, August 25, 2014 10:16:00 AM | 0 comment(s)

Well folks it looks like UPS shipping rates are going up.  Here's an interesting article explaining when the rates are going up:

"United Parcel Service said on June 17, 2014 it will set rates for all U.S. ground shipments based on package size, following a similar move by rival shipper FedEx. 

UPS plans to expand dimensional-weight pricing, which determines cost by measuring exterior package size, beginning Dec. 29. Shipping prices are based on dimensional weight if it exceeds the actual weight. 

The Atlanta-based company already applies this method for domestic and international air services, as well as UPS Standard service to Mexico and larger packages sent to Canada. UPS said it will also start using dimensional-weight pricing for all packages shipped to Canada through UPS Standard. 

“UPS has been researching the potential expansion of dimensional-weight pricing for a number of years because it enables us to more appropriately align rates with costs which are influenced by both the size and weight of packages,” UPS chief commercial officer Alan Gershenhorn said in a statement. 

In May 2014, FedEx announced it will apply dimensional-weight pricing to all shipments starting Jan. 1, 2015. Like UPS, FedEx has used size-based pricing for express shipments and certain large packages. 

The switch to dimensional-weight pricing comes in response to rising fuel costs and the increasing popularity of online shopping. With retailers like often putting small items in large boxes, lightweight packages can take up a lot of space on delivery trucks but are priced at lower rates. 

UPS explained that recent shipping trends have resulted in declining package density, saying shipments are getting larger compared to the package weight. UPS hopes its rate changes will convince customers to match box sizes to the items inside. 

“The company believes that as a result of the dimensional weight pricing method, more shippers will seek to optimize their packaging practices,” UPS said. “These efforts will reduce excess packaging materials and overall package sizes, leading to related reductions in fuel use, vehicle emissions and transportation costs.” 

For some UPS Freight customers, the company recently began offering an optional density-based pricing program. The new pricing method uses a shipment’s weight and cubic volume rather than the National Motor Freight Classification system."

UPS Ground shipments in U.S.: If the cubic size of the package in inches is 5,184 or larger, divide the cubic size by 166 to determine dimensional weight in pounds. If the cubic size in inches is less than 5,184, use the actual weight of the package. Increase any fraction to the next whole pound.

Effective December 29, 2014, dimensional weight will be used to calculate the billable weight of all UPS Ground packages.
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