Do you send ten or more parcels a day? If so, it’s time to prepare your business for the upcoming carrier changes. In 2015, FedEx® and UPS® will change their dimensional ratings this will mean increased shipping charges for many companies. Industry experts are saying these changes could result in double-digit cost increases for shippers. Arm yourself with all the information and learn how your business can address these changes, it’s not too late! Because doing nothing today will cost you tomorrow.
-FedEx and UPS are expanding DIM weight pricing to ALL packaging beginning December 29th. 4.9% General rate increase.
* Dimensional Weight is calculated by multiplying the length by width by height of each package (in inches) dividing by 166 (for domestic shipments) or 139 (for shipments to Canada)… unless a customized dimensional weight factor has been negotiated, in which case that factor should be used.
It is estimated that 85% of all ground shipments will be subject to this new pricing structure, and in many cases will result in large price increases. Some experts are estimating double-digit cost hikes for shippers when annual rate increase are factored in.
So what can you do?
1. Audit your shipping operation. Which carrier do you use? How often do you use them? What types of packages do you ship? How much are you spending?
2. Are you shipping boxes with lots of empty space? In 2015 that will cost you! Implement strategies to maximize the space used when shipping.
3. Look at new carriers like UDS and compare how they can save you money in 2015. Regional Carriers like UDS do not apply these DIM weights in the same way and therefore are able to save their customers more money. Call us today at 630-930-5201 or visit us at http://www.uniteddeliveryservice.com// to learn more.
4. Implement software or other technology that measures and weighs each SKU and selects the smallest carton that allows the merchandise and packing materials to ship safely. Avoid putting small items such as apparel or pharmaceuticals in overly large boxes with excess space.
Take a look at your shipping operation today so it doesn’t cost you tomorrow!