David Paul Morris/Bloomberg News
UPS Inc. said it plans to begin using dimensional pricing to calculate rates for all ground shipments, as carriers shift pricing strategy to match lighter-weight packages.
The shift, announced six weeks after a similar move by FedEx Corp.’s ground unit, expands the process of pricing goods based on the dimensions, rather than just weight. UPS and FedEx both already use dimensional pricing for ground packages that are three cubic feet or larger.
The UPS move, effective December 29, also will apply to Standard to Canada packages. UPS uses dimensional pricing for all air packages. FedEx’s move takes effect January 1.
“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,” said Alan Gershenhorn, UPS executive vice president and chief commercial officer.