Carrier Updates 2015: Item Dimensions Critical
Posted by Doug Sherman on 05 Jan 15 02:00 AM
AuctionInc has completed all the annual updates for 2015 to all our carrier rating engines and carrier APIs, including new rates, fees, and many other details that drive our accurate rates.
As usual, FedEx, UPS, and DHL are all raising all their rates and many of their (required) accessorial fees. All three carriers claim their rate increase averages 4.9% (quite a coincidence!)
However, the more critical news this year is about how the rate is going to get calculated, rather than the hikes themsleves. Both UPS and Fedex are dramatically expanding their use of "dimensional weight", which compares a weight figure derived from the package volume to the physical weight, and uses the higher of the two to determine the rate.
While both carriers have applied dimensional weight to their air services for quite a while, most Ground packages have been exempt. This year, all Ground services from the two carriers will use the same formula to determine the rated weight.
An example: if you have a box weighing 1 lb, with dimensions of 12 x 12 x 12, this box will actually be rated as if it weighed 11 lbs. (12*12*12/166). For a package going from Boston to L.A., this is the difference between a $14 and a $28 rate for UPS Ground.
What is means to you is that it is more important than ever that you carefully pack your orders so that you dont "ship air" and stock enough box sizes so you can avoid this. That air has just become very expensive! And in terms of your shipping calculator, it is critical that you use a technology such as ours that collects your item dimensions and is able to generate accurate packaging data from it.
As always, AuctionInc is your partner in managing your shipping costs as effectively as possible.