On December 29th you may be paying a lot more to ship UPS.
Beginning on 12/29/14 UPS will be using dimensional weight to determine the shipping charges you will be paying for ALL your packages not just those that are greater than 3 cubic feet (5184 cubic inches) as in the past. FEDEX will start doing this on January 1st.
This means that 18 x 12 x 12 box that holds a 4 pound product that you currently pay $9.11 to ship to Zone 5 (The most common shipping zone for UPS) will cost you $11.81!
That is a $2.70 increase! Almost 30% more!
Dimensional weight is calculated by measuring the L (Length) x W (Width) x H (Height) of the outside of the box and dividing by 166.
8 x 8 x 8 = 512/166 = 3.08lbs. This package will now ship at 4lbs (UPS/FEDEX always rounds up) regardless how much the content weighs.
We got to thinking about the factor for domestic shipments:166. Where did this number come from? It is a number selected by UPS and FedEx-
but why 166?
Then, like a bolt a lightning, it struck... the rounding factor for 'STOCK BOXES'!
A quick calculation shows that all the standard sizes 8x8x8, 10x10x10, 12x12x12 will be just over the next pound up (In our example above the 8x8x8 box is 3.08 which = 4lbs in UPS/FEDEX land).
The trend is alarming. This also means that we can engineer a box to be a full pound less by designing customized packaging to lower shipping costs that will have little or no discernible impact on your packaging.
At Kelly Box and Packaging, we have been working with our customers to right size packaging and educate our buyers as well as their shipping departments on ways to reduce the effect of these shipping increases. Have you looked at the impact to your shipping costs? Do you want to work with experts that understand these new rules and know how to effectively change your packaging to reduce costs? Get in touch with your KBPC rep today!