FedEx Math - Game of Dimensions

Have you ever felt cheated opening a potato chip bag to find it’s mostly air? FedEx is the latest to join the club of companies charging more for less. Beginning August 18, the carrier is making changes to how it calculates dimensional weights.
Spoiler alert: it’s in FedEx’s favor.
Today, we’re talking about the changes to FedEx dimensional weight calculations, their potential effect on your invoice, and how you can avoid surprises and lower your total invoice with FedEx.
How Are Dimensional Weight Calculations Changing With FedEx?
In order to calculate a parcel’s dimensional weight, multiply length, width, and height in inches and divide by 139. When the dimensional weight is greater than a parcel or shipment’s actual weight, FedEx may assess charges on the dimensional weight.
Currently, parcels with dimensions that measure less than 1/2 inch are rounded down to the nearest inch. However, according to its website, “FedEx will round every fraction of an inch/centimeter up to the next-higher inch/centimeter” starting August 18.
How Will That Change Affect My Invoice?
For most, a change of 1/2 an inch or less isn’t that big of a deal. However, with an additional handling surcharge that ranges from $8.25 to $10.90 per package, an oversize charge between $90 and $108.50 per package, and a ground unauthorized package charge between $490 and $545 per package, the consequences can really add up.
Many shippers whose products are packaged specifically to avoid these fees will need to update their products and/or packaging, or be subjected to substantial fees.
Are There Any Other Changes at FedEx?
In addition to the calculation updates, FedEx announced a new pricing structure for parcel pickups in the US and Canada. These charges affect automated, regularly scheduled, on-call, and Saturday and Sunday pickups.
FedEx also plans to increase its US Inbound Processing Fee for US import shipments. The current rate is $1.50 per parcel.
Is UPS Doing the Same?
FedEx isn’t alone in changing its calculations. On August 17, UPS will no longer use the old length + girth calculation for assessing the Domestic Large Package Surcharge (LPS) and the Domestic Additional Handling Charge (AHC).
Instead, the LPS will be assessed on parcels weighing more than 110 pounds or with a cubic size exceeding 17,280 cubic inches. The AHC will apply to parcels with a cubic size exceeding 8,640 cubic inches.
How Can ShipRx Lower My Invoice?
FedEx and UPS math is changing, but the team at ShipRx knows that doesn’t mean your bill should skyrocket with the carriers’ whims.
We’ve helped hundreds of companies save millions of dollars with FedEx and UPS through parcel rate negotiations. We know the ins and outs of the industry and can help you discover where you’re paying too much— and how to lower your rates.
Sign up for a free savings analysis, and we’ll pinpoint exactly how much you can save through parcel negotiations and parcel audits. The best news? You won’t pay a cent until you’re seeing savings on your invoice, so there’s nothing to lose.