A change is coming soon. If your business uses UPS or FedEx for shipping, you will be directly affected. It is now more important than ever to understand how to calculate the shipping rates so that you can make adjustments in your business to meet these rising costs before this impacts you and your customers.
Both FedEx and UPS will be implementing dimensional weight shipping rates. In the past, dimensional weight shipping rates were only used for packages over 3 cubic feet. Now these carriers will apply dimensional weight shipping rates for all US ground services. According to industry shipping experts, this is likely to lead to double digit cost hikes for shippers when annual rate increases are factored into the equation.
Here is how you can calculate dimensional weight for any package, no matter the size or shape. First to determine dimensional weight you need to measure the length, width and height of the package in inches at the longest points. You will need to include any bulges or irregularities in your measurements and round to the nearest whole number. Next you multiply length, height and width. This will give you the cubic size in inches. Next, you need to know the dimensional weight factor, also known as the DIM factor The DIM factor is different for domestic ground shipments and international air shipments and is subject to change. To assure the accuracy of your calculation, be sure to verify the DIM factor from the shipping carrier you choose before finalizing your calculation. The cubic size is then divided by the DIM factor to determine the dimensional weight in pounds. This weight is then rounded to the nearest whole pound. From there, compare the packages actual weight to its dimensional weight. The higher of the two is the billable weight.
The dimensional weight factor will vary depending on the shipment destination. If your package is being shipped somewhere within the continental United States the dimensional weight factor is 166. For packages being shipped internationally, the factor is 139. This differentiation accounts for additional shipping costs related to longer travel distances for international shipments.