Discussion in 'FedEx Discussions' started by stopsperhour, May 7, 2014.
They haven't been?
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Not on most ground packages. All express packages are. I guess the 17% profit margins using the contractor scam isn't enough.
It's not a scam!! The ISP model has been continuously tweaked by FedEx so it is legal!! I have drivers who have been with me for 10 years!! I pay benefits!! Ground is Good!!
It's a scam because I don't like it.
P.S. Somebody do something. I'm busy posting on BC...spreading the word to 15 like minded individuals.
Strange since all this time we at express have been told, and told to tell our customers that the reason for dim weighting was due to the extra expense of flying the freight.
People still dim weight? I stopped once the rexing bonus was eliminated.
LOL! Let em catch it at the hub.
How else are they going to pay for all the lawsuits and the 1.6 billion dollars they promised investors?
Nice to see the money coming out of someone else's pocket for a change.
And I'm sure the contractors think they're going to get a piece of that. Lol
Yes they have. What a stupid article. It's been in both UPS And Fedex's Service Guide for ages. Sure there has been changes over the years but how the article reads "Instead of charging by weight alone, all ground packages will now be priced according to size. The big question now is whether United Parcel Service..."
UPS and Fedex have the same Dim rules, yesterday, today and no reason to assume in the future.
This is from the Wall Street Journal, total fail, total. They are making hysteria over the way things have been and then doesn't realize UPS doesn't dim weight to.
And for several replies here shows me how out of tune some are who think they are all that. There is nothing hidden or new.
Your sales people do not state it like that and they are the officials we would be listening to for the bottom line. It is basically stated if you ship dense packages you will be billed on weight, however if it is large and lite it is based on size, then they will give us the formula UPS and Fedex the same formula, this is negotiable. Weight and Size are critical factors on properly rating capacity. I've never heard it as a flying thing, it still is more when you dimmed out a flying package vs dimming out a ground one. It's because of the size it takes up, leaves less room for other freight.
That would be nice, but won't happen. They already took away the extra payment we used to get for oversized packages.
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Sorry bub you don't even know how FedEx works.
Sorry I am/was right. I will now link you to your service guide. HOWEVER... I will gladly state this is new info, looking at the date and it goes into affect next year. So I'm cool with not having this new info until now. AND I'm ok with what I said, as I couldn't get into the whole WSJ Article as I'm locked out. It is still a fact that Ground does have Dim pricing today and the rules will be changing, the rules have changed over the years. Having dim packages hasn't.
Here's your Service Guide:
The official Link: http://images.fedex.com/us/services/pdf/Service_Guide_2014.pdf
Dimensional weight is calculated by multiplying the length by width by height
of each package in inches and dividing the total by 166 (for shipments within the U.S. and
shipments between the U.S. and Puerto Rico) or 139 (for U.S. export and U.S. import-rated
international shipments). If the dimensional weight exceeds the actual weight, charges
may be assessed based on the dimensional weight. Dimensions of one-half inch or greater
are rounded up to the next whole number; dimensions less than one-half inch are rounded
down. The final calculation is rounded up to the next whole pound. Dimensional weight
applies per package or per shipment to all FedEx Express U.S. shipments in customer
packaging, and per shipment to all international shipments and U.S.-to-Puerto Rico
shipments in customer packaging. Shipments in FedEx packaging may be subject to
Dimensional weight may apply to FedEx Ground packages that are 3 cubic feet
(5,184 cubic inches) or larger. Multiply the length by width by height of each package in
inches. If the total is 5,184 or greater, calculate dimensional weight by dividing by 166
(for shipments within the U.S.) or 139 (for shipments to Canada). If the dimensional weight
exceeds the actual weight, charges may be assessed based on the dimensional weight.
If the chargeable weight exceeds 150 lbs., a prorated per-pound rate will be used.
Dimensions of one-half inch or greater are rounded up to the next whole number;
dimensions less than one-half inch are rounded down. The final calculation is rounded
up to the next whole pound. If the package measures less than 5,184 cubic inches,
dimensional weight does not apply and charges will be assessed based on actual weight.
So I'll gladly state that sure something new can be coming or changes to something already existing. It's a given. But Ground has had dim weighting for a long time and it has always been equal to UPS. So with that logic I will at this time assume UPS will match exactly what Fedex is doing here. I will follow up with Reps on both ends for clarification.
What basically is happening after reading your link (thank you) is dropping the minimum that Express doesn't have:
Ground Dimensional weight may apply to FedEx Ground packages that are 3 cubic feet or larger. -This is going away.
That means the formula is now based on every package without a minimum like Express. (LxWxH/166 if sum>Weight, billed by that Dim Sum.) It doesn't mean all packages will then dim out, if the package is still denser/heavier you will be billed by weight. It's just the formula is now applied to all packages. Now am I crazy about this? No. However it isn't surprising, unfortunately costs of shipping continues to rise for us.
So back to the WSJ article which I cannot read in full... it isn't all ground packages will now be dimmed charged, they will all be subject to the formula.
Just telling the company line I've been told. Not surprised at all that its a different story from sales reps.
Effective January 1, 2015, FedEx Ground will apply dimensional weight pricing to all shipments. Currently, FedEx Ground applies dimensional weight pricing only to packages measuring three cubic feet or greater. This change will align the FedEx Ground dimensional weight pricing with FedEx Express by applying it to all packages. Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume—the amount of space a package occupies in relation to its actual weight.
I'd say this is a major change. Sorry you can understand that and it was reported by numerous news websites not just the WSJ.
I read what I could of the link provided here. Was later directed to the presser and now understand in full, thanks.
Oh it's a change worth noting for sure, but we can talk all day about tons of accessorials carriers have and how they go up each year, we rework the #'s every year to set our calendar pricing. This is news, I just read the majority of first replies here as if "Dim Weights Didn't Exist for Ground" hence the Thread title "FedEx to add dim weight charges to Ground packages". I wanted to differ as they have been all along, just new rules added. Or replies that this is a scam, if one can say it is, then many accessorials are, in every industry etc. Now if the accessorials didn't go up, then the base price would and that would affect everyone instead of just shipments that meet a certain criteria. I did read some of the replies as "bitter", but that is common here.
Lets take a 2x10x12 package it would now dim rate at 1.44 lbs round up to 2 lbs on the bill because these "scam companies", round any decimal point up to the next pound, not just .5 or greater. So if that package with those dims was under 1 lb prior, it will now be a billed as a 2 lb'er. Now how many packages and how much more is that cost and how does this upset the economics of shipping? We'll have to see...
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