November 21, 2016

UPS® Changes DIM Policy to Align Closely with FedEx's

Author: Krish Iyer

Shippers now have another change to keep their thumb on for 2017.  UPS® recently announced a change to their DIM policy that more closely aligns with FedEx’s recent change to the measurement of Dimensional Weight.  Currently, both carriers use a calculation of length x width x height divided by 166 inches for domestic shipments, with international shipments utilizing a divisor of 139 inches.  FedEx announced recently a change (taking effect in 2017) to 139 inches for all shipments, matching the policy for international shipments and potentially having a profound increase in shipping rates—in addition to yearly rate increases.  UPS recently announced the change to 139 inches for all shipments greater than 1 cubic foot (1,728 cubic inches), effective January 8th, 2017.   

UPS made an additional announcement that requests for refunds when a timely upload of package data has not been provided will no longer be honored.  Finally, UPS also announced a change to their fuel surcharge, as adjustments will now be made weekly.  FedEx made a similar announcement two months ago and now UPS has followed suit. Additionally, UPS has now matched FedEx's daily fuel surcharge timetable and has added an additional table for calculations. Another notable change is that international export is to be split off into its own rate chart, which means that UPS Ground index is no longer distinct from air and international services. What we now have are three different tables with separate rates to be analyzed on a weekly basis.

 

How can businesses mitigate the change?

There are tools to compare carriers on an “apples to apples” basis based on rates, dimensions and weight which will play a major role in managing shipping spend.  Businesses can look at shipping tools that provide the ability to compare carriers, to find the best option that fits specific shipping needs.  Customers have the option of shipping with the USPS®, a parcel carrier who does not have as restrictive DIM policies.  Finally, having shipping software that properly communicates with the shipping carriers ensures that customers can file for refunds when there has been a service failure. 

More information is available on the UPS Web site: rates.ups.com; additionally, if you wish to learn further details, check out our shipping blog. You can also learn more about Dimensional Weight, by visiting our informational resource for customers at www.dimweightresources.com

 

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