Experts: New UPS Dimensional Weight Pricing Will Have Significant Impact- Multichannel Merchant
Generally the switch to dimensional weight pricing is in response to rising fuel costs and the increasing popularity of online shopping. As products shipped from online marketplaces like Amazon.com and eBay are often smaller items packed in larger boxes, they can take up a lot of space on delivery trucks but are priced at lower rates.
Doug Starcke, managing partner of First Flight Solutions, a parcel spend management company made up of former UPS and FedEx employees, said the moves by the major carriers will likely lead to double-digit cost hikes for shippers when annual rate increases are factored in.
“In 2007 UPS and FedEx went to dimensional pricing for packages over 3 cubic feet, so this is just a continuation of that trend,” Starcke said. “That one hit companies shipping large items like furniture, and now everyone is getting dinged, including the guy shipping a T-shirt or pair of shoes.”
Generally the switch to dimensional weight pricing is in response to rising fuel costs and the increasing popularity of online shopping. As products shipped from online marketplaces like Amazon.com and eBay are often smaller items packed in larger boxes, they can take up a lot of space on delivery trucks but are priced at lower rates.
Doug Starcke, managing partner of First Flight Solutions, a parcel spend management company made up of former UPS and FedEx employees, said the moves by the major carriers will likely lead to double-digit cost hikes for shippers when annual rate increases are factored in.
“In 2007 UPS and FedEx went to dimensional pricing for packages over 3 cubic feet, so this is just a continuation of that trend,” Starcke said. “That one hit companies shipping large items like furniture, and now everyone is getting dinged, including the guy shipping a T-shirt or pair of shoes.”
