Fuel prices have been on the decline as of recently in the US, but fuel surcharges from major shipping platforms such as FedEx and UPS have gone up. Shipping charges for overpriced packages and third party suppliers have also gone up, making it crucial for you to know your DIM weight
and how it affects your overall shipping costs. According to Forbes
, “with increasing internet connectivity and many new companies entering the space, online sales are at an all-time high.” Thus, it is critical to know exactly how much you’re being charged for shipping your packages and budget accordingly.
Understanding DIM Weight
DIM weight (also known as Dimensional Weight or Volumetric Weight) is used by shipping companies to determine the amount to be charged for a package based on its dimensions. Although many packages (especially small and extra small packages) don’t make sense to be calculated in DIM weight, larger packages (such as oversized packages) are usually assessed on the size they occupy rather than the weight they have. Some companies utilize a method of calculations whereby they use the higher cost between the weight charge or the volumetric charge. Larger shipping companies simply deliver a larger overall fee when dealing with a standard box size and then recalculate based on this size for any items over a certain volume.
How DIM Weight Affects Costs
DIM weight affects the fuel surcharges that a company charges and that cost can be monumental with the recent increases. The Wall Street Journal
has pointed out that shipping one hundred show boxes from New York to Atlanta has gone up from $67 prior to the rise in prices to $170 today. That’s over twice the price of the original shipping costs. This simple calculation shows why DIM weight is a major consideration when it comes to calculating final shipping costs. Knowing your DIM weight is important in determining how much you’re going to have to pay in shipping via fuel surcharges.
Volumetric Calculation and Shipping Sizes
Probably the most effective way to work around this particular problem is to resize shipping so that it fits in more economically sized boxes. While this isn’t a solution some companies can consider, those that ship items in the same oversized box regardless of what size the internal item is can stand to benefit from revamping their shipping methodology and coming up with ways to make it less likely that they have to pay an arm and a leg in shipping costs. Although the prices for shipping have gone up quite a lot (exorbitantly in some cases) over the last few weeks, there is scarcely an alternative route that a company can take to get its products out on time. As an expert in shipping and packaging supply, Hughes Enterprises
prides itself on offering economical and timely solutions to companies by assessing their needs and offering products that suit them. Contact us today to find out if there’s a way we can help you to save on your shipping costs.