UPS and FedEx raising rates

Discussion in 'Trade Talk' started by puboflyons, Dec 30, 2014.

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  1. puboflyons

    puboflyons Grand Pooh-Bah (4,299) Jul 26, 2008 New Hampshire
    Pooh-Bah

    I wasnt sure which was the best firum to post in. I saw a report on Rueters that beginning next week UPS and FedEx will no longer charge by weight. The costs will be based on dimensional weight. They're trying to get people to ship in smaller boxes. The article is focused more on the impact on online retailers.

    The new shipping cost system requires multiplying the length by its height and weight and then divided by 166 to reach its dimensional weight.

    Many regular traders may already be aware of this. I rarely do it so I was not aware.
     
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  2. creepinjeeper

    creepinjeeper Initiate (0) Nov 8, 2012 Missouri

    The weight comes into play only if the actual weight is more than the dimensional weight. I believe UPS just started this yesterday; FedEx starts on January 1st. I just sent out a 15x15x15 box on 12/26 when UPS was still going by the old system and was charged for 13 lbs. The new system (15x15x15=3,375 then divide by 166) would have placed my package at 21 pounds. A big difference. They add a fuel surcharge. Not sure if they'll continue that or if FedEx does that as well.
    I double box, so this is gonna hurt a little.
     
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  3. c64person

    c64person Initiate (0) Mar 20, 2010 Michigan

  4. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    Ugh...so I just put in the dimensions and weight for a box I'm getting ready to send out through FedEx. 17x14x10 box weighing 14 pounds. They're saying it's going to be $23-24. I would have expected this box to cost $17-19...must be the new changes. This will add up quick...not sure what can be done to minimize the impact of these changes.
     
  5. creepinjeeper

    creepinjeeper Initiate (0) Nov 8, 2012 Missouri

    My suggestion would be to try and use as square of a box as possible. That might help a little.
     
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  6. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    When I changed the dimensions to 14x14x14...it actually went up a few bucks. 12x12x12 is pretty close, just under $23. 10x10x10 not much better, also just under $23. I think this just may be the new price of shipping FedEx...I may need to explore how this compares to their OneRate boxes, and maybe USPS, as they did not adopt the dimensional weight thing (not sure it's impacting the prices in this particular instance).
     
  7. Jaycase

    Jaycase Grand Pooh-Bah (3,858) Jan 13, 2007 Illinois
    BA4LYFE Society Pooh-Bah Trader

    FedEx Express packaging offers you a practical and advantageous solution. Dimensional weight standards are not applied to this packaging, providing that the dimensions have not been changed.

    No idea how much the Fedex Express packaging is but it does not seem to be subject to dimensional weight. A possible alternative anyway.
     
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  8. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    Good thought but the Express Saver option (assuming that's the one they reference) is $56 to ship.

    I also checked the One Rate, and it would be $19 with their large box, but that is only 9 x 8 x 11 (give or take). Extra Large Box is 12 x 11 x 11, but that ups the price to $39 (crazy jump).

    So it seems that if you can fit everything into the Large box and ship One Rate, that's the best deal and you don't have to worry about weight. The size, however, means I probably couldn't use it for most of my shipments.
     
  9. c64person

    c64person Initiate (0) Mar 20, 2010 Michigan

    I have to do a little more math, but what I did was re-cost the last 7 boxes I have shipped (with the same information as I was charged for) and my costs increased 35%. It went from $110 to $150 for shipping of those boxes...

    I sure hope I mathed wrong somewhere. :confused:
     
  10. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    Based on my quick calculations/playing around the website, and your quick calculations, I don't think you are wrong...I think shipping just got more expensive.
     
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  11. c64person

    c64person Initiate (0) Mar 20, 2010 Michigan

    Ok, just got home, analyzed my last 30 days of shipping, here is how it breaks down:

    My overall cost increase is 13.1% due to the new switches.

    Half of my boxes are hit with the new dimensional weight BS, which for those boxes alone the cost increased by 19.5%.

    Here is the anonymized spreadsheet if anyone wants to see the math.

    What I have learned is basically to use the dimensional formula ((L*W*H)/166) to my advantage and get my box size and weight as close to the dimensional weight as possible.
     
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  12. Jaycase

    Jaycase Grand Pooh-Bah (3,858) Jan 13, 2007 Illinois
    BA4LYFE Society Pooh-Bah Trader

    Do you use UPS? Because the Fedex dimensional weight formula is ((L*W*H)/139) which really gets the shipper in comparison.
     
  13. pumpkinsmasher

    pumpkinsmasher Zealot (527) Nov 12, 2013 New York
    Trader

    I'm sure glad gas prices have gone down. This makes the price increase more justifiable, right?

    Someone or some people at FedEx are getting a big bonus this year.
     
  14. VegasHopHead

    VegasHopHead Initiate (0) Jun 21, 2012 Nevada

    More incentive to make your own labels and drop at a drop store like postnet or other spin off. Those people could care less. They scan it in and put it in the back for pickup.
     
  15. Ckoz

    Ckoz Savant (1,174) Feb 15, 2014 Michigan
    Trader


    FedEx or UPS could very well catch it later in the shipping cycle. Most do actually at least from what I have personally experienced. I dont have a scale at home and usually try to guess the weight. Well, more often then not I get billed for a higher amount than what I am quoted when I make the label. It is what it is though will influence me to do more IP trades
     
  16. Stevedore

    Stevedore Grand Pooh-Bah (5,096) Nov 16, 2012 Oregon
    Pooh-Bah Trader

    Another reason to trade less often.
     
  17. creepinjeeper

    creepinjeeper Initiate (0) Nov 8, 2012 Missouri

    I believe 139 is the international formula ...
     
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  18. Jaycase

    Jaycase Grand Pooh-Bah (3,858) Jan 13, 2007 Illinois
    BA4LYFE Society Pooh-Bah Trader

    Doh. Yep, sorry. The first link on a google search is a french link.
     
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  19. VegasHopHead

    VegasHopHead Initiate (0) Jun 21, 2012 Nevada

    I've never had this issue. The only thing that really changes the cost of my boxes is where they go.
     
  20. iTunesUpdates

    iTunesUpdates Initiate (0) May 7, 2014 Florida

    Figured this out today. I had a irregular shaped box and shipping was like $29 for 5.6 pounds. I freaked out and got a box from the fedex location and the price to ship went down over %50.
     
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