How do Fedex/UPS determine rates?

Discussion in 'Trade Talk' started by BBThunderbolt, Aug 19, 2013.

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  1. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    I've recently shipped 2 boxes. Box A was 27lbs, Box B was 31lbs. Box A went about 100 miles farther, Box B had larger dimensions. Box B was over twice the cost of Box A. Would 4lbs make that much difference? What's the formula they use to figure out their rates?
     
  2. SammyJaxxxx

    SammyJaxxxx Initiate (0) Feb 23, 2012 New Jersey

    I bet there is a rate for less than 30lbs and another rate for more than 30 lbs
     
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  3. mikeburd1128

    mikeburd1128 Maven (1,409) Oct 28, 2011 New Jersey

    First off, this should be in the trading info forum. Secondly, don't you think you could've asked them and gotten a far better answer than you might get here? Or maybe on their websites or something?
     
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  4. Benish

    Benish Pooh-Bah (2,446) Mar 13, 2013 Utah
    Pooh-Bah Trader

    I kind of wondered that myself. Also is there a flat rate shipping before the cost increases due to higher weight/dimensions of packages?
     
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  5. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    Lots of folks don't go near the trading forums, so I was trying to reach a wider group. And no, they don't tell you how they set their prices on their sites. Mostly I was wondering if there's a formula using the dimensions of the box. It's more idle curiosity than anything else.
     
  6. PapaGoose03

    PapaGoose03 Grand High Pooh-Bah (6,057) May 30, 2005 Michigan
    BA4LYFE Society Pooh-Bah

    If they traveled the same general direction was there a state border in between the two destinations? I think the distance zones that are used by the shippers use groupings of states and their boundaries on the map for rate increments and cost is not measured by mileage.
     
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  7. Orca

    Orca Grand Pooh-Bah (4,710) Sep 18, 2010 Washington
    Pooh-Bah Trader

    I think it also depends on the nature of the address. If you're shipping to an apartment building in the middle of a large city, the charge could go up compared to a house in a less congested area. But I think box dimensions and weight have more of an impact on rates than flat distance. Rural areas may cost more as well. A few BAs work for FedEx so maybe you'll get more than idle anecdotal speculation.
     
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  8. joeebbs

    joeebbs Initiate (0) Apr 29, 2009 Pennsylvania

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  9. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    Box A went CT, Box B NY. According to Bing maps, 90 miles apart. I sent both basic ground Fedex, both are 5 Business day deliveries.
     
  10. joeebbs

    joeebbs Initiate (0) Apr 29, 2009 Pennsylvania


    https://www.fedex.com/ratefinder/home
     
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  11. leedorham

    leedorham Initiate (0) Apr 27, 2006 Washington

    Dimensions figure in quite a bit too. They use what is called "dimensional weight."http://www.fedex.com/be/tools/dimweight.html

    The calculator basically tells you which aspect of the package is a bigger hassle to them, dimension or weight, and that the shipping calculations will be based on the larger number.

    For example - two packages, each 40 pounds. One is 20x20x12 and another is 20x20x15. The first would be a DW of 35 so the rates would be based off of the actual weight. The second would be a DW of 44 so the rates would be based off of the DW. You are basically penalized for using a box that is larger and less dense.
     
  12. cavedave

    cavedave Grand Pooh-Bah (4,157) Mar 12, 2009 New York
    In Memoriam Pooh-Bah Trader

    I think the size cutoff is 18x18x18 for the rates. Also if it is a rural destination or a more urban is another rate differential.
     
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  13. nanobrew

    nanobrew Initiate (0) Dec 31, 2008 California

    dimensions can make a big factor in cost too, not just weight. I know there has been formulas posted before on this, but I am too lazy to google them

    edit: I went ahead and found it:

    http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&ved=0CDwQFjAA&url=http://www.fedex.com/ca_english/customersupport/faq/DimensionalWeight.pdf&ei=cnwSUpyyD4vyyAHCuoEw&usg=AFQjCNGi68bspEYANaTMFYTxSr4eBKAfbQ&sig2=84NHunKaibEvEW_wGfq7-g&bvm=bv.50768961,bs.1,d.aWc

    edit #2: Another factor can be if the destination is rural and a pain in the ass to get too. I believe there are sometimes extra "excess" fees added
     
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  14. BrettHead

    BrettHead Initiate (0) Sep 18, 2010 Nebraska

    3. Dimensions
     
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  15. PapaGoose03

    PapaGoose03 Grand High Pooh-Bah (6,057) May 30, 2005 Michigan
    BA4LYFE Society Pooh-Bah

  16. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    Thanks, didn't see that when I was poking around their site.
     
  17. ant880

    ant880 Savant (1,179) Nov 7, 2010 New York
    Trader

    This...dim weight basically means that the more space your box takes up on the truck, the more you will pay
     
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  18. c64person

    c64person Initiate (0) Mar 20, 2010 Michigan

    The extra 'fee' with FedEx its called their DAS Res rate, it add $5-10 for shipments that go to BFE (or if you are on some sort of island where its a pain in the arse to get to). I am not sure the UPS term for it, but I know people that live in those places end up getting charged for it every time they ship any package if they go with Pick-Up option.

    The biggest cost though is the dimensional weight aspect, and if you are shipping Ground or Home delivery. FedEx charges extra to do Home delivery (which gives you the benefit of getting packages on Saturdays).

    Also, don't use a UPS Store or anything similar, as they are their own independent franchise, and will charge you above and beyond what UPS charges as they want to make money as well.
     
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  19. ant880

    ant880 Savant (1,179) Nov 7, 2010 New York
    Trader

    Maybe he wanted to see how many douche bag responses he could get here on BA. So, including yours, the count stands at one...
     
  20. backbaybrewer

    backbaybrewer Zealot (712) Feb 26, 2010 Massachusetts
    Trader

    This sounds like a dimensions issue. They do it by simply calculating the volume of the box (LxWxH). If the total is over a ceratin number, I'm not sure what that number is, you pay a premium. You can check your dimensions and weight of your package on their website to get an idea of what the cost will be before heading out to FEDEX. I always do this and if the amount for a 15lb box is more than about 15-18 dollars i change boxes.
     
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