Attention FedEx and UPS Ground Shippers: New Carrier Policies Amount to Largest Rate Increase Ever!
So what can shippers do? Consider the following tips:
- Understand the impact of these dimensional changes to your business. Review the table of box sizes above, and conduct a similar analysis using your primary box sizes and actual weights to compare with the new dimensional weight.
- Contact your FedEx and UPS representatives in an effort to amend your current contract with a customized cubic inch threshold and/or dimensional factor. Both FedEx and UPS know they won't be able to implement volume-based pricing with all of its customers — or at least not right away.
- Consider deferred ground services. FedEx SmartPost packages are NOT affected, as that service doesn't apply a dimensional rule, making SmartPost an even better economic alternative to FedEx Home Delivery for lightweight, nonurgent, residential packages. As far as we know, UPS SurePost will maintain the 1,728 DIM exception policy.
- Consider alternative carriers, including the USPS and regional parcel carriers. The USPS offers a 194 DIM factor, and some regional carriers don't plan on matching the 2015 increases.
- Seek help. Shipware has established a review-and-action plan for shippers concerned about this rate change.
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.