UPS to Hike Rates Again, Based on Dimensional Weight Calculation Change

Two months after UPS Inc. announced that it would raise rates next year, the company stated it will add a price hike through changes to the dimensional weight calculation for North American parcels and freight effective Jan. 8.

Domestic shipments greater than 1 cubic foot will carry a 139 divisor to calculate dimensional weight, down from the current 166 figure. UPS Inc. and FedEx  Corp. measure shipments for weight and dimensions and charge customers the higher of the two figures. When the divisor is lowered, it raises the dimensional weight number and thus raises the overall shipping rate, according to Jack Ampuja, president of Supply Chain Optimizers and executive director of Niagara University’s Center for Supply Chain Excellence.

UPS also will lower the length at which it adds another handling charge to packages with the longest side exceeding 48 inches, down from 60 inches.

In September, FedEx announced it would lower the divisor to 139 and change the additional handling charge threshold to 48 inches on Jan. 2.

Calculations for packages less than a cubic foot won’t change.

UPS and FedEx rank No. 1 and No. 2, respectively, on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.