At Tape Products Company we are always watching the industry news that may impact our clients and we wanted to make everyone aware of upcoming changes to the “Dimensional Weight Pricing” structure on ground packages in the United States. Both UPS and FedEx have announced changes, the UPS went into effect on December 29, 2014 and FedEx on January 1, 2015.
Currently FedEx and UPS factor in the dimension of packages that measure three cubic feet or larger in their shipping rates on ground shipments in the United States. However, the changes mean that both companies will dimensionally rate all packages, regardless of size.
What this means for our customers is that almost every shipper will see an increase in shipping costs. To help our clients transition to new pricing structure we encourage them to develop a plan to reduce the impact of freight costs. Some potential changes include:
- Boxes – changing to stronger, smaller dimension boxes
- Packaging – finding protective packaging alternatives, such as air bags, paper fill, foam-in-place, packaging peanuts, honeycomb, bubble or foam wrap
- Carton closure/box unitization options – tapes, plastic banding, bundling film
- Box alternatives – switching to bundling, cold seal, mailers, tubes, or laminated paperboard
To discuss specific options for your company to possible reduce your shipping costs, please visit our website or contact us directly. We also actively post more industry news on Twitter, LinkedIn, Facebook, and Google+. And please feel free to discuss how these changes will impact your business in our comments section below.