Earlier this year we reviewed the general price changes for UPS and FedEx. In January 2018, both companies put an average 4.9% rate increase into effect. With the dimensional weight divisor changing from 166 to 139, companies saw an actual price increase of up to 103% in some cases.
Recently more changes came to light from both UPS and FedEx. Not only are overage fees increasing to $80, but the definitions are narrowing, and the minimum billable weight is changing for FedEx.
FedEx
FedEx is removing 12” (a whole foot) off of their package length qualifications for oversize packages. Another, more hidden, change is that FedEx is changing the minimum billable weight for oversize packages to 90 lbs.
For example, if a package qualifies as oversize by dimensions, it will receive an $80 fee automatically. Additionally, the package will be billed at a minimum of 90 lbs. This means that even with the dimensional weight factors, shippers may still pay significantly more for large, but lightweight packages.
UPS
UPS is adding the same package length qualification to their oversize packages. The company’s minimum billable weight will remain the same, at $80 - 90 lbs to match the FedEx change.
The Effects
There’s no sugarcoating the situation- shipping will be more expensive in 2018. The groups primarily targeted by these changes are:
- Lightweight, large freight (pillows, large cardboard displays, couch cushions,)
- Companies who have no waiver for the 90-lb minimum in their shipping agreement (review your agreement terms sooner, rather than later!)
- Long or large packages overall
- Need for Express services or guaranteed delivery time
Stay ahead of expenses and look into your shipping agreement. Furthermore, these increases may cause an adjustment in package dimensions/materials. Dim Weight Solutions is here to help your company adjust as needed to pay the lowest shipping rates possible.
Get Started with a Packaging Specialist