Shipping Prices Set to Rise in 2017

A few months ago, we shared with you our tips for using dimensional weight shipping to cut your business’s mailing expenses. Recently, commercial mailing companies have made some big changes to how they price your packages. Here’s how these changes might affect your company and your shipping budget.

Two of the biggest shipping companies in the country, FedEx and UPS, are changing how they calculate the weight of a package. The dimensional and actual weight are calculated, and then the shipper is charged for the greater of the two.

What does that mean, exactly? Here’s an example:

Dimensional weight is calculated by multiplying the dimensions of your package and then dividing that number by something called the “dim factor.” The current dim factor used is 166.

If you have a package that is 20”x20”x11” and weighs 12 lbs., you will now be charged the dimensional weight of 27 lbs. (20x20x11 = 4400; 4400/166 = 26.5, rounded up to 27 lbs.). instead of the actual weight of 12 lbs. That’s over twice as much!

Effective January 2, 2017, the dim factor is changing from 166 to 139. That means the package that once shipped at a dimensional weight of 27 lbs. will ship at a dimensional weight of 32 lbs! This is a hidden rate increase that most shippers don’t know about, and if you regularly mail products it can drastically affect your expenses.

Now more than ever, it can be hard to determine the best shipping methods for your business. The team at Silverback can help you navigate the cost of shipping products, and help you lower expenses in all areas of your business.

Contact us today to find out more about how we can uncover hidden fees and price increases, and help your business function smarter – for less!

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