Post by PickyChicky on Jun 23, 2014 7:28:33 GMT -6
Cindybear brought this article to my attention and asked that I post it on the appropriate board. It's funny that this should come up now when I just learned about dimensional weight for larger packages when updating my spreadsheet for my stained glass products. I always wondered why things that weighed the same had different shipping rates. Now that I've added the formula to automatically calculate the dimensional weight of the items, I can see why.
HUGE CHANGES TO FEDEX AND UPS GROUND DIMENSIONAL WEIGHT SHIPPING CHARGES FOR 2015
According to the article, Fedex and UPS will start basing their rates on dimensional weight even for smaller packages starting in 2015. Currently, they're only charging the dimensional weight on packages that measure more than 3 cu feet (L x W x H > 5184 inches). The formula for figuring the dimensional weight is L x W x H / 166.
The example used in the article is a large 5 pound box that measures 18" 18" x 12". The dimensional weight for which is 18x18x12 / 166 = 23.4 pounds. The article notes rates shipping from Chicago to Los Angeles, but I'm providing the example shipping from my location in Texas to both Washington (the farthest from me) and Missouri (center of the US).
Dimensional Weight: 18x18x12 / 166 = 23.4 pounds
Actual Weight: 5 pounds
Shipping from Texas to Washington:
Current Rate: $20.26
2015 Rate: $45.56 (that's more than double!)
Shipping from Texas to Missouri:
Current Rate: $17.69
2015 Rate: $28.11 (still a significant increase!)
What's interesting is that even the USPS online rates for Standard Post are cheaper than UPS's current rates. The Priority 2-Day rates are sky high, though (the amount in parentheses). Shipping from Texas to:
Washington: $14.33 ($55.30)
Missouri: $11.37 ($36.46)*
* What's odd about this one is that the online rate for Priority Mail Express is cheaper at $34.08.
So, while USPS Standard Post is currently more economical than UPS and Fedex for packages that weigh less, they will become even more competitive come 2015. That's good news for the USPS as they will regain business from those who currently ship most if not all packages via UPS or Fedex.
My stained glass supplier uses UPS exclusively, but they currently get seriously discounted rates. However, I wonder just how attractive UPS will be to them in 2015. Whether or not they switch shipping of some package to USPS, they at least provide the option to create our own shipping label via whichever carrier we choose.
There have been times when it was cheaper to ship a stained glass product via USPS, so I've bought my own label and sent them a copy of it. That's a real PITA, though, so I sure hope they make the USPS option available online when the time comes. I do keep track of rates on my spreadsheet for USPS and what they charge for UPS to make sure my customers are getting the most economical rate.
So, it will be interesting to see what happens in 2015.
HUGE CHANGES TO FEDEX AND UPS GROUND DIMENSIONAL WEIGHT SHIPPING CHARGES FOR 2015
According to the article, Fedex and UPS will start basing their rates on dimensional weight even for smaller packages starting in 2015. Currently, they're only charging the dimensional weight on packages that measure more than 3 cu feet (L x W x H > 5184 inches). The formula for figuring the dimensional weight is L x W x H / 166.
The example used in the article is a large 5 pound box that measures 18" 18" x 12". The dimensional weight for which is 18x18x12 / 166 = 23.4 pounds. The article notes rates shipping from Chicago to Los Angeles, but I'm providing the example shipping from my location in Texas to both Washington (the farthest from me) and Missouri (center of the US).
Dimensional Weight: 18x18x12 / 166 = 23.4 pounds
Actual Weight: 5 pounds
Shipping from Texas to Washington:
Current Rate: $20.26
2015 Rate: $45.56 (that's more than double!)
Shipping from Texas to Missouri:
Current Rate: $17.69
2015 Rate: $28.11 (still a significant increase!)
What's interesting is that even the USPS online rates for Standard Post are cheaper than UPS's current rates. The Priority 2-Day rates are sky high, though (the amount in parentheses). Shipping from Texas to:
Washington: $14.33 ($55.30)
Missouri: $11.37 ($36.46)*
* What's odd about this one is that the online rate for Priority Mail Express is cheaper at $34.08.
So, while USPS Standard Post is currently more economical than UPS and Fedex for packages that weigh less, they will become even more competitive come 2015. That's good news for the USPS as they will regain business from those who currently ship most if not all packages via UPS or Fedex.
My stained glass supplier uses UPS exclusively, but they currently get seriously discounted rates. However, I wonder just how attractive UPS will be to them in 2015. Whether or not they switch shipping of some package to USPS, they at least provide the option to create our own shipping label via whichever carrier we choose.
There have been times when it was cheaper to ship a stained glass product via USPS, so I've bought my own label and sent them a copy of it. That's a real PITA, though, so I sure hope they make the USPS option available online when the time comes. I do keep track of rates on my spreadsheet for USPS and what they charge for UPS to make sure my customers are getting the most economical rate.
So, it will be interesting to see what happens in 2015.