As was expected, UPS has now announced that they, too, will begin to assess dimensional weight pricing on domestic Ground shipments less than 3 cubic feet. This will also be applicable on UPS Standard to Canada packages.
There is one difference to note. FedEx’s implementation of dimensional pricing is effective on January 1, 2015, while UPS plans to implement this on December 29, 2014. Depending on your financial reporting cycle, the increased freight expenses could impact your 2014 budget as last-minute packages are shipped at year-end.
As was noted in my prior post regarding the FedEx announcement, the application of dimensional weight pricing will also drive up the fuel surcharge expense since it is a percentage of the freight cost. These increases will be in addition to the annual general rate increase.
For more information about dimensional weight and how it is assessed, see my prior post http://eyeonlogistics.com/2014/03/10/understanding-dim-factors/.
For the details regarding the FedEx announcement, please see http://eyeonlogistics.com/2014/06/02/fedex-ground-altering-application-of-dim-weight/.