UPS Rate Change Effective Dec 29, 2014

[g2ktcf]

Effective December 29, 2014, dimensional weight will be used to calculate the billable weight of all UPS Ground packages.

This is not good news for anyone using an online shipping system. Dimensional Weight is about how you pack your order and not the total order weight. I have a call into my UPS Account Manager for clarification now. The UPS Dimensional Weight usually only applies to shipments where the package volume is larger than 5,184 cubic inches. The above statement seems to contradict that.

More to follow after my call is returned....

[RixStix]

Fedex has also confirmed that Dimensional weight tariff structure will apply to all ground services beginning Jan 2015.

[g2ktcf]

well so much for any online system being able to handle shipping costs accurately. Dimensional Weight is its own nightmare for that.

I have a solution for this but it takes time to "teach" your shipping system how to pack orders. I have it working in a rough format currently but I have really not had the time to fully develop it. Quite frankly, I have modified most of my store prices to include ground shipping with quantity discounts for items shipped together. This has worked so well, I have not looked at my old solution anymore.

[g2ktcf]

Found the announcement...and no, my account rep has not returned my call yet I have sent an email to their Public Relations Department (not that it will do any good) explaining how they are increasing their profits directly out of my pocket with this new plan.

http://www.pressroom.ups.com/Press+R...Weight+Changes

[yaritai]

Fedex was the first to announce this change. Then UPS followed suit. USPS for now has said that they are not going to change their criteria. However, USPS will also eventually do the same as their is a partnership between them to get packages delivered. But I would say this is a smart move as lightweight items in a big box takes away from other shipments. Going purely on size will maximize capacity at the appropriate costs. While it may be a negative for shippers you have to realize that they no longer want to give away space as its not cost-effective.

[g2ktcf]

Fedex was the first to announce this change. Then UPS followed suit. USPS for now has said that they are not going to change their criteria. However, USPS will also eventually do the same as their is a partnership between them to get packages delivered. But I would say this is a smart move as lightweight items in a big box takes away from other shipments. Going purely on size will maximize capacity at the appropriate costs. While it may be a negative for shippers you have to realize that they no longer want to give away space as its not cost-effective.

I agree in general as it is their business call and my letter to UPS specifically acknowledged that it would promote more efficient packing. However, most folks do not understand that no online store shipping software can handle this (at least that I know of). For some online retailers, you could be under quoting your shipping by up to 50% ESPECIALLY for 2nd Day and Overnight shipments. This will be a major hit for my shipping calculations and I think we need to get a solution in place quickly

[RixStix]

I agree in general as it is their business call and my letter to UPS specifically acknowledged that it would promote more efficient packing. However, most folks do not understand that no online store shipping software can handle this (at least that I know of). For some online retailers, you could be under quoting your shipping by up to 50% ESPECIALLY for 2nd Day and Overnight shipments. This will be a major hit for my shipping calculations and I think we need to get a solution in place quickly

I thought the dimensional change only related to ground shipments. It will ultimately boil down to the wording of the tariff document

[yaritai]

I thought the dimensional change only related to ground shipments. It will ultimately boil down to the wording of the tariff document

This new change that is going to take place for Fedex and UPS is targeted to their ground shipments. However, the air shipments are already being charged as dimensional weight.

But for those who are unaware you should be talking with a account manager to setup your negotiated rates. While ground shipments do not get much savings, the air shipments get hefty discounts. We use the difference between retail and negotiated to self-insure our shipments for the last 6 years which has been a profitable business on its own merit.

[vanhorn_s]

I already get charged dimensional weight by UPS for ground. If I ship a 10 lb Item in a 12x12x12 box, it costs more than a 12x12x6 box. I have always found that zc quotes more that the actual cost, so I have never really cared much about it.

[yaritai]

I already get charged dimensional weight by UPS for ground. If I ship a 10 lb Item in a 12x12x12 box, it costs more than a 12x12x6 box. I have always found that zc quotes more that the actual cost, so I have never really cared much about it.

You should be talking with your account manager. USPS goes by 1 cubic foot while UPS Ground currently is at 3 cubic feet before dimensional weight kicks in.