USPS changes parcel pricing strategy; shipper impact unclear

Discussion in 'The Latest Headlines about USPS, DHL, Amazon, etc.' started by cheryl, Jun 15, 2019.

  1. cheryl

    cheryl I started this. Staff Member

    USPS changes parcel pricing strategy; shipper impact unclear - Freightwaves

    On June 23, the U.S. Postal Service (USPS) implements a pricing change that subjects more parcels to rates pegged to their dimensions instead of their actual weight. What impact, if any, this has on the USPS shipper universe won’t be known for months.

    Under the new policy, USPS will, for the first time, price parcels which measure more than 1 cubic feet – or 1,728 cubic inches in multiplied length, width and girth – and which move less than 600 miles by the higher of either its “dimensional” or actual weight. Currently, all parcels moving less than 600 miles are exempt from dimensional pricing. Also on June 23, each parcel measuring more than 1 cubic foot and moving more than 601 miles will be priced using a new “divisor” that calculates dimensional pricing, better known in the industry as “DIM.” The divisor will be reduced to 166 from 194.

    USPS will not apply dimensional on any parcels measuring less than 1 cubic foot.