UPS moves to dimensional weight pricing


UPS (UPS) announces it will charge customers based on dimensional weight for all ground services.

The company thinks it will reduce costs on efficiency gains as packages sizes decrease and less extra packing materials are needed.

The new pricing matrix will start on December 29.

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Comments (9)
  • gtb4775
    , contributor
    Comment (1) | Send Message
     
    Brilliant move assuming they do a good job justifying with their customers. Density of goods shipped has radically changed in the past 25 years and truckers/package carriers tend to run out of space long before they have an overweight vehicle problem, so why not sell services based on space (much like the air freight carriers have been doing for years).

     

    Let's hope the approach sticks (and Amazon quits shipping a flat golf glove in a 14 x 8 x 3 box with a ridiculous amount of packaging materials)
    17 Jun 2014, 09:38 AM Reply Like
  • busterbrown
    , contributor
    Comments (208) | Send Message
     
    I'm a driver and you are totally correct. lol
    17 Jun 2014, 11:03 PM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (711) | Send Message
     
    >Let's hope the approach sticks (and Amazon quits shipping a flat golf glove in a 14 x 8 x 3 box with a ridiculous amount of packaging materials) <

     

    Definitely. They waste a lot of space with their packaging.

     

    Interesting that it starts just after Christmas. Are they afraid of losing the Christmas rush business? It seems they could make more if they started it now.
    17 Jun 2014, 10:49 AM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    To me it looks like this is basically a 2015 initiative. In addition, it no doubt gives their big customers needed time to adjust.
    17 Jun 2014, 03:54 PM Reply Like
  • dosmastr
    , contributor
    Comments (100) | Send Message
     
    I'm scratching my head on this one.... The just spent a million dollars 3 years ago to put in systems that read the dimensional weight of each packaged as it is unloaded... We managers (yes me) have been told that the label must be positioned so that the Electronic Dimensioning System (EDS) "can read it to ensure customers who have incorrectly billed themselves get billed correctly" (Translation, to regain lost revenue from people who lied and said the were shipping a letter rather than a 15 cube package)

     

    Furthermore I shipped a very large but very light box (15lbs but I could've shipped two of myself in it... im a 6ft 185lb man) and got a message on the ups.com site that my package had been billed by dimension weight -- on the label it said 75lbs even though it was only 15.

     

    All of the mega hubs ( Worldport, Philadelphia Air hub, Chicago Area Consolidation Hub (CACH) and all of the medium sized buildings have EDS systems installed.

     

    Amazon is also odd... sometimes its the perfect box for the thing I orders, a minimum of packing material... and other times, as discussed above, its quite a bit packing material and a small product... I thought they had a computer system that told them exactly what box to use with each item because someone wrote a very smart program that knew how big all of what they sold was and could figure out the best way to fit everything ordered into the perfectly sized box..... I guess its glitching or I heard wrong.

     

    As for when it starts, this is typical UPS, every time they have raised or changed prices in my 10 years there, it has always been set to go into effect around the turn of the year, so this change likewise also happens near the end of the year.
    UPS values consistency
    18 Jun 2014, 04:51 AM Reply Like
  • dosmastr
    , contributor
    Comments (100) | Send Message
     
    and evidently many many people lie and get caught because the revenue EDS recovered was 1/3 of the profits for the district my building is located in.
    18 Jun 2014, 04:54 AM Reply Like
  • cordeeezy
    , contributor
    Comments (85) | Send Message
     
    Fed ex announced this first, UPS following suit. Fed ex only applies to packages over 1728 cubic inches. I expect usps will pick up a lot of business due to this
    18 Jun 2014, 06:15 PM Reply Like
  • cordeeezy
    , contributor
    Comments (85) | Send Message
     
    Fed ex announced this policy first UPS following suit.
    18 Jun 2014, 06:15 PM Reply Like
  • dosmastr
    , contributor
    Comments (100) | Send Message
     
    did some research, turns out UPS only cares (currently) if the box is 3 cubic feet or larger. The new rules would change that.
    20 Jun 2014, 05:20 AM Reply Like
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