UPS Announces Dimensional Weight Changes
June 17 2014 - 8:30AM
UPS ® (NYSE:UPS) today announced that, beginning December 29, 2014,
in the United States, dimensional weight will be utilized to
calculate the billable weight of a shipment on all UPS® Ground
services and UPS® Standard to Canada packages. UPS already applies
this method for UPS air services (domestic and international), UPS
Standard™ to Mexico ground services and for UPS® Ground packages
and UPS® Standard to Canada packages measuring 3 cubic feet in size
or larger.
"UPS has been researching the potential expansion of
dimensional-weight pricing for a number of years because it enables
us to more appropriately align rates with costs which are
influenced by both the size and weight of packages," said Alan
Gershenhorn, UPS executive vice president and chief commercial
officer.
Recent e-commerce shipping trends have resulted in a decrease of
package density. For example, the package weight compared to the
physical exterior dimension is declining. This trend causes cargo
space to be less efficiently utilized, resulting in an increased
cost per package.
The company believes that as a result of the dimensional weight
pricing method, more shippers will seek to optimize their packaging
practices. These efforts will reduce excess packaging materials and
overall package sizes, leading to related reductions in fuel use,
vehicle emissions and transportation costs.
As an industry leader in sustainable transportation practices,
UPS provides solutions to assist customers with more efficient
packaging options. The UPS Package Design and Test Lab helps
customers optimize the size of packaging to minimize dimensional
weight, ensuring packages are protected while in transit.
In addition, UPS Freight recently began offering an optional,
simplified density-based pricing program to a segment of its
customer base. Traditionally, the less-than-truckload (LTL)
industry has utilized the National Motor Freight Classification
(NMFC) system, a commodity-based standard that can be complex for
both customers and carriers. The UPS Freight Density-Based Rating
LTL pricing solution is based solely on the weight and cubic volume
of a shipment rather than the NMFC system. This program benefits
customers that construct shipments in the most efficient manner and
reduce the resources required to transport their goods.
About UPS
UPS (NYSE:UPS) is a global leader in logistics, offering a broad
range of solutions including the transporting of packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the Web at
ups.com® and its corporate blog can be found at blog.ups.com.
To get UPS news direct, visit pressroom.ups.com/RSS.
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Editor's Note:
Dimensional weight pricing is a common method to determine
prices in the transportation industry. It takes into account
exterior package size, which is the amount of space a package
occupies when in the cargo area of the transport vehicle, in
relation to its actual weight to determine the appropriate
price. The dimensional weight calculation will apply if it is
greater than the actual weight.
CONTACT: Andy McGowan
amcgowan@ups.com
404-828-4663
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