Small U.S. firms may struggle with new UPS, FedEx dimensional prices

Discussion in 'The Latest UPS Headlines' started by cheryl, Dec 30, 2014.

  1. cheryl

    cheryl I started this. Staff Member

    Small U.S. firms may struggle with new UPS, FedEx dimensional prices - Reuters

    United Parcel Service Inc and FedEx Corp are rolling out new pricing systems to curb online retailers' large package sizes, but industry experts warn many small firms are unprepared and could pay up to 50 percent more for shipping.

    Starting Monday, UPS will no longer charge for U.S. ground packages under 3 cubic feet by weight but by their "dimensional weight."

    Memphis-based FedEx will roll out the same change on Jan 5.
     
  2. upschuck

    upschuck Avatar bet gone wrong

    I believe it is whichever is more, and not by dimwt alone.
     
  3. rod

    rod retired and happy

    Dimwt is just another legal way to rip off the customer. Just like leaving the gas surcharge in place when the price of gas goes down. Corporate American has all these tricks down pat.
     
  4. upschuck

    upschuck Avatar bet gone wrong

    It is off diesel prices, which are still pretty high, still over $3 dollars, and the surcharge lags a couple months.
     
  5. 10 point

    10 point Well-Known Member

    It was $3.79-$3.99 in our area. Now it's $2.49-$2.59.

    35% difference is a lot of reduction.
     
  6. upschuck

    upschuck Avatar bet gone wrong

    Nationwide average, 2 month lag.
     
  7. 10 point

    10 point Well-Known Member

    Lags both ways?
    Hard to imagine the company eating an increase for two months.
     
    Last edited: Dec 31, 2014
  8. upschuck

    upschuck Avatar bet gone wrong

    I'm not defending anything, I'm looking at the facts. It is a 2 month lag. I'm guessing that they buy the fuel 2 months ahead of time, which accounts for the lag time.
     
    • Informative Informative x 1
    • List
  9. By The Book

    By The Book Well-Known Member

    I get the concept of dimensional weight, but its not justified when your pulling a 30% trailer. If your trying to make UPS do everything so no customer is affected by being overcharged good luck with that. It probably makes up for all the shippers who get away with pkgs. that are underestimated in the weight dept.
     
  10. By The Book

    By The Book Well-Known Member

    When we first went to dim wt pricing a shipper of mine would mark like 3lbs in the old srm books when the actual wt was over 40lbs. It took about 5 minutes for me to burst his bubble, he'd thought he had hit the lottery.
     
  11. upschuck

    upschuck Avatar bet gone wrong

    Back then, they probably got away with more than got caught, will be harder now with the dim scales in the hubs.
     
  12. By The Book

    By The Book Well-Known Member

    Cheryl, I was replying to a post under the thread something about treating workers like slaves or something and the thread vanished. Just wondering.
     
  13. 10 point

    10 point Well-Known Member

    They've been pretty proactive in that dept for a few years now.

    I have a shipper on my route that is in constant conversation with the company about their box dim and weights and the shipper is pretty sharp in combatting additional charges.

    It'll affect competitive pricing but the end user's going to shoulder the load and it'll probably boost Post Office volume.
     
    Last edited: Dec 31, 2014
  14. cheryl

    cheryl I started this. Staff Member

    Here's what happened to that thread. The op reported it to the mods and asked to have her post deleted. The thread didn't make much sense without her posts in it so a mod put it in the trash can. She also messaged me asking for her account to be deleted. So poof, she's gone...
     
  15. By The Book

    By The Book Well-Known Member

    Thanks for the reply! I was just done answering her thread so she would calm down and my post showed and poof it was gone.
     
  16. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    You must be poof the majik draggin'.
     
  17. pickup

    pickup Well-Known Member

    Her boyfriend probably came home or woke up and she proudly showed the thread she starting about his troubles at UPS. She was then told to get the post deleted and to get back in the kitchen.


     
  18. Indecisi0n

    Indecisi0n Well-Known Member

    A small business was just explaining all this to me the other day. Not only are they going with the new dimweight billing but they are also doing their annual price hikes. Double whammy. Happy New Year from UPS.
     
  19. upschuck

    upschuck Avatar bet gone wrong

    I have also seen big sized boxes from Amazon, Target, and QVC to name a few, that had little products in them, and about half the excess spaced filled with bubble wrap. It will hurt the big retailers probably more than the little guys, because the smaller businesses probably have better control of there shipping than the big boys, whose employees could not give a lick as to what size box they put it in.
     
  20. Indecisi0n

    Indecisi0n Well-Known Member

    It's a little naive to say that. A small business owner told me with the new pricing he is looking at spending about 3-4.00 more per package. He ships 60-70 boxes a day. So that means he is paying close to $280.00 more per day which comes out to $1,960.00 per week. Amazon makes that in a less than a second. This small business might have to end up laying someone off.