Since 2015, parcel carriers like UPS and FedEx have adopted the practice of using dimensional weight to calculate the cost of a shipment, instead of solely relying on actual weight. This change in approach can significantly impact the final cost of a shipment and affect your business's bottom line.
Dimensional weight takes into account the amount of space a package takes up, making it a more profitable approach for carriers. Prior to 2015, larger, lightweight packages limited the carriers' potential for revenue. With the implementation of dimensional weight, a package weighing 15 lbs. could be billed as 100 lbs.
To understand how dimensional weight is calculated, follow these steps:
Multiply the length, width, and height of the package (in inches) and round each measurement to the nearest whole number.
If the package is less than 1 cubic foot (1,728 cubic inches), use the actual weight. If greater, divide the total cubic inches by the dim divisor. Most carriers use a dim divisor of 139, but this is negotiable in your carrier agreement.
The number you arrive at is the dimensional weight, rounded up to the next whole pound.
Compare the dimensional weight to the actual weight, and use the higher of the two as the billed weight.
To reduce costs associated with dimensional weight, consider the following tips:
Optimize packaging to minimize empty space within packages and keep box sizes as small as possible.
Negotiate the dim divisor in your carrier agreement, as increasing this factor can lower costs.
Consider using regional carriers or USPS, as they may offer more aggressive dimensional weight concessions and have a higher dim divisor.
For further information on how dimensional weight affects your parcel spend, reach out to support@empactparcel.com.