A Closer Look at DIM Weight Pricing

11/29/2016 — Leah Palnik

Dimensional (DIM) weight can be a tricky subject to master. All of the changes that small package carriers UPS and FedEx have made in recent years don’t help. In 2017, FedEx is lowering the DIM factor for domestic packages to 139 from 166. UPS is making the same change for domestic packages less than or equal to 1,728 cubic inches. So how will this change affect you?

First, it’s important to understand what dimensional weight is and how it’s calculated. Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume, in relation to its actual weight. Carriers use dimensional weight in order to account for the space packages take up on their trucks and planes. This allows for a more precise way to charge for their services.

The basic formula for calculating DIM weight is (length x width x height)/DIM factor. For most small packages, the DIM factor will now be 139. The one exception is UPS domestic packages 1,728 cubic inches and under. UPS originally didn’t announce any changes to its DIM weight pricing for 2017, but it followed suit after FedEx announced it would be using 139 as the DIM factor for both domestic and international packages. Let that serve as a reminder to stay informed, as UPS and FedEx are continually making updates to their rates, surcharges, and DIM weight rules.

Once you calculate your DIM weight, compare it to your actual weight. The greater of the two will become the billable rate. When deciding if you need to make any adjustments to how you ship your packages in the upcoming year, start by doing an analysis of your common shipments. Look at those package measurements, calculate the cubic inches (length x width x height), and find the DIM weight to determine your billable weight. For an easy way to determine your billable weight, click here to use our DIM weight calculator.

UPS and FedEx base rates differ quite a bit more in 2017 than they have in the past. Because of this, you’ll want to make sure you’re not just using DIM weight pricing to determine which carrier to use. Download our free white paper, Understanding the 2017 Small Package Rate Increases, for a detailed analysis on the new rates.

Since density is the name of the game, make sure you review your shipment packaging to reduce the size of your package if you can. Don’t use oversized boxes that contain unused space and, where possible, consolidate orders. By being more efficient with your packaging, you’ll ensure you’re not paying to ship empty space.

One of the best ways to offset the rate increases and DIM weight pricing changes is to ensure you’re maximizing any discounts available to you. PartnerShip offers association members discounts on select FedEx services. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you.

Understanding the UPS and FedEx Rate Increases

11/11/2016 — Leah Palnik

Every year small package carriers FedEx and UPS evaluate their shipping rates and make adjustments that can have a substantial effect on you and your business. The UPS rate increases take effect on December 26, 2016, while the new FedEx rates take effect on January 2, 2017. As always, how much more expensive your particular small package shipments will be in the new year depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts: 

• FedEx Express and International rates are increasing an average of 3.9%
• UPS Air and International rates are increasing an average of 4.9%
• FedEx Ground and Home Delivery^® rates are increasing an average of 4.9%
• UPS Ground rates are increasing an average of 4.9%
• The dimensional divisor for FedEx domestic packages is changing from 166 to 139
• UPDATE: the dimensional divisor for UPS domestic packages greater than 1,728 cubic inches is changing from 166 to 139
• FedEx SmartPost^®, FedEx One Rate^®, and UPS SurePost^® rates will be changing

The important takeaway when thinking about your shipping expenses in 2017 is that the announced average increases paint an inaccurate picture of the true impact these new rates could have on your business. The shipping experts at PartnerShip^® have dug into the details and analyzed the new rate tables to assess the true impact to shippers and help you make sense of these changes. Learn more about how the 2017 rate increases will affect your shipping costs by downloading our free white paper!

Download Now! Understanding the 2017 Small Package Rate Increases

PartnerShip Offers Freight Insurance to Decrease its Customers’ Shipping Risk (and Stress!)

11/04/2016 — PartnerShip

The LTL shipping industry has been reducing its shipment liability to the point where recovery for lost or damaged freight is pennies on the dollar. As recently as 15 years ago, carriers agreed to be liable for the full cost of any freight lost or damaged. But as their insurance costs increased, carriers began decreasing their liability to keep costs low. Today, it’s common to see liability restricted to $0.25 per lb. or even less.

In our relentless effort to help customers ship smarter and stay competitive, PartnerShip is now offering freight insurance. We’ve teamed up with Roanoke Trade (a division of Roanoke Insurance Group, Inc.) to offer coverage to shippers against physical loss or damage, providing them a better option than relying solely on a carrier’s liability coverage.

This high quality, competitively-priced and easily-managed freight insurance will pay to repair or replace the cargo regardless of if the carrier is found liable.

We’re logistics experts and our customers rely on us to help them safely and efficiently move their freight. LTL carriers want shippers to bear the risks of in-transit loss or damage, but freight insurance helps mitigate the risks inherent with the shipping process.

Benefits of freight insurance include:

·         Affordability. Minimum premiums as low as $20 per shipment

·         $0 deductible. Approved claims are paid from $1 (maximum liability of $100,000)

·         Claims typically paid within 30 days

·         Pays to repair or replace the cargo whether or not the carrier is found liable

Of course, some restrictions apply. Your PartnerShip account representative can give you a complete explanation of freight insurance from Roanoke Trade.

The shipping experts at PartnerShip are here to help you ship smarter and stay competitive. Contact us at 800-599-2902 or email sales@PartnerShip.com for more information about freight insurance.