By now you have probably heard that major shipping companies are going to drastically increase prices at the beginning of 2015. Logistics and Distribution Centers are about to feel the pinch as both carriers drop their 3-foot cubic allowance and begin charging dimensional pricing on smaller packages.
The information below will help you understand how carriers will calculate dimensional weight as well as provide some tips for saving money in our new shipping environment. It is more important than ever for you gain full control of your shipping process before the new pricing structure goes into effect on January 1st, 2015.
The new rules allow for shipping companies to charge dimensional pricing for packages that are smaller than 3 cubic feet. This will effect up to 77.9% of B2C shipments and 76.9% of B2B shipments. Where will your company’s shipments fit in? You’ll probably want to conduct a full, detailed review of your packaging in order to understand the full magnitude that the change will have. But in the meantime, you can see the chart below to see what size parcels will be affected. This will give you a better idea of whether your average shipment will get hit with charges:
As you can see, the packages most likely to see a price increase are in the mid-size range. We can help you plan for the upcoming dimensional charges by doing a box analysis and offering solutions. If you’re interested in learning more about Packsize On Demand Packaging®, send us an email by clicking the link below.