The New FedEx & UPS DIM Rule
FedEx & UPS just announced what will likely be the single largest rate increase on record for many shippers. Effective December 29, 2014 for UPS and Thursday, January 1, 2015 for FedEx, both carriers will impose dimensional weight (DIM) pricing on all Ground packages.
Currently, FedEx & UPS only apply DIM pricing to Ground packages measuring three cubic feet (5184 cubic inches) or greater. Come 2015, FedEx & UPS are eliminating this rule, enabling their ability to apply dimensional weight pricing to EVERYTHING (including Ground packages measuring less than three cubic feet). Subjecting all packages to dimensional weight pricing will affect virtually all US shippers, as the vast majority of Ground shipments are less than three cubic feet.
For those who have negotiated a custom DIM factor greater than 166... you are not immune to this change. Make no mistake; unless your contract specifies an exception to the 3 cubic foot DIM threshold, this will affect you. The dimensional pricing rule change will coincide with the typical annual price increase, thus having an extraordinary impact on the cost of shipping in 2015 and beyond.
It is not advisable to wait until after the rate increase has taken effect before taking action. Now is the time to start planning.
Curious to know how this major rate increase will affect your costs? Lojistic can quantify the impact to your business and help you determine a strategic approach to mitigate this change to Ground shipping prices.