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Industry Developments |
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Space Speaks Volumes
The Dimensional Volume Factor
For years, airfreight carriers have been computing shipping costs based on the amount of space the packages actually take up on their planes. Now, ground parcel carriers have adopted a similar volume-based fee, charging for precious space rather than weight.
Effective in 2007, UPS, FedEX, DHL, and USPS will be replacing their 2006 oversize rates with a rate calculation based on dimensional weight. See the formula below used to determine the Dimensional weight of your package.
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L
x W x H
194 (U.S.) or 166 (Canada)
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= Dimensional Weight
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Why Accurate Size Matters
Accurate size matters because if there is a variance between the shipper (you) and the carrier’s calculation, back charges will be finding their way into your accounts payable department, affecting your bottom line. It pays (literally) to be a shipper who dimensions every package, ensuring they are charging the correct rate to their customer instead of absorbing the additional costs later!
In 2007, it’s important to understand your carrier’s weight requirements as new fees speak volumes as well. For example, if your carrier applies a minimum weight allowance of 10 lbs., all boxes meeting a specified size will be charged a minimum of 10 lbs, in spite of the actual weight, even if it is only 6 lbs.
Dimensioning Beyond the Shipping Dock
The benefits of dimensioning go beyond the shipping arena. Applying dimensioning on the inbound side of your operation will better utilize space and improve data integrity to a WMS. Within 3PLs, dimensional weight will give these delivery agents the same edge, to effectively use trailer space and control transportation costs.
Accurate measuring, It’s Worth a Second Look!
Put away the tape measure! Whether you run a small shipping operation, or a high-volume distribution center, having accurate dimensions can greatly increase your bottom line or increase revenue recovery. From a simple, low-cost static dimensioner to a high-end automated system, ScanScale.com has the solutions that will guarantee you a positive return on your investment. Contact us now.
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