UPS Announces Dimensional Weight Changes, Effective From Dec. 29 - Quick Facts

(RTTNews) - Logistics giant United Parcel Service (UPS) announced Tuesday that, beginning December 29, 2014, in the United States, dimensional weight will be utilized to calculate the billable weight of a shipment on all UPS Ground services and UPS Standard to Canada packages.

The company said it already applies this method for UPS air services (domestic and international), UPS Standard to Mexico ground services and for UPS Ground packages and UPS® Standard to Canada packages measuring 3 cubic feet in size or larger.

Alan Gershenhorn, UPS executive vice president and chief commercial officer, said, "UPS has been researching the potential expansion of dimensional-weight pricing for a number of years because it enables us to more appropriately align rates with costs which are influenced by both the size and weight of packages."

The company noted that recent e-commerce shipping trends have resulted in a decrease of package density.

The company believes that as a result of the dimensional weight pricing method, more shippers will seek to optimize their packaging practices. These efforts will reduce excess packaging materials and overall package sizes, leading to related reductions in fuel use, vehicle emissions and transportation costs.

In addition, UPS Freight recently began offering an optional, simplified density-based pricing program to a segment of its customer base. Traditionally, the less-than-truckload (LTL) industry has utilized the National Motor Freight Classification (NMFC) system, a commodity-based standard that can be complex for both customers and carriers. The UPS Freight Density-Based Rating LTL pricing solution is based solely on the weight and cubic volume of a shipment rather than the NMFC system.