Rob Martinez, Shipware--Effective January 1, 2015, FedEx Ground will apply dimensional weight pricing to all shipments. Currently, FedEx Ground applies dimensional weight pricing only to packages measuring three cubic feet or greater. http://news.van.fedex.com/fedex-announces-pricing-changes
This is a huge rate increase. The MAJORITY of Ground packages are less than 3 cubic feet. FedEx used the word "all", so it appears that even the 1 cubic foot exception it has for Express shipments would not apply (and perhaps the Express exception could too go away!).
Many volume shippers have custom dimensional divisors, but standard cubic thresholds. So this change will affect nearly EVERY FedEx Ground customer!
FedEx Sales and Revenue Management teams are going to be VERY busy filing pricing requests to grandfather the old DIM or negotiate some improvement over the new rule.
Financial impact is well into the hundreds of millions, and that's just FedEx. UPS -- which handles significantly more Ground business -- has a history of following suit!
Shipware has established a review and action plan for shippers concerned about this rate change. Interested shippers should email corporate@ShipwareLLC.com to get details.
This is a huge rate increase. The MAJORITY of Ground packages are less than 3 cubic feet. FedEx used the word "all", so it appears that even the 1 cubic foot exception it has for Express shipments would not apply (and perhaps the Express exception could too go away!).
Many volume shippers have custom dimensional divisors, but standard cubic thresholds. So this change will affect nearly EVERY FedEx Ground customer!
FedEx Sales and Revenue Management teams are going to be VERY busy filing pricing requests to grandfather the old DIM or negotiate some improvement over the new rule.
Financial impact is well into the hundreds of millions, and that's just FedEx. UPS -- which handles significantly more Ground business -- has a history of following suit!
Shipware has established a review and action plan for shippers concerned about this rate change. Interested shippers should email corporate@ShipwareLLC.com to get details.
