DIMENSIONAL WEIGHT AND YOUR PARCEL COSTS While we’ve all been aware of the changes in dimensional weight pricing in recent years, many shippers still don’t fully understand how these changes impact their parcel spend. Here’s an in-depth look.
f you ship small parcels with either of the national parcel carriers and you’ve been paying attention to the changes in their dimensional weight (DIM) pricing strategies, you probably have at least a working knowledge of how these changes impact your parcel spend. You hopefully understand the formula that the carriers use to calculate the DIM
BY DAVE SULLIVAN weight of your packages, and you most likely understand how the carriers use that weight to determine the appropriate billable weight. You’re probably also painfully aware of how changes to the carriers’ DIM formula over the past few years have caused your shipping costs to rise dramatically. And you likely can recite from memory the carriers’ current DIM factor (or divisor),
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which they use as part of their DIM weight calculation for each service. But how much do you know beyond that? Considering that the move to a 139 DIM divisor in 2017, coupled with the carriers’ standard general rate increase, amounted to what many experts believe to be the carriers’ largest ever single-year rate increase, it’s probably worth your time to become as educated as you can about the topic. The more you know, the more you can use that knowledge to make targeted requests for concessions from the carriers.
PARCEL Nov/Dec 2018