Doug Caldwell, AFMS--Late on Friday afternoon, FedEx announced that ALL ground packages, not just those over 3 cubic feet, would be subject to the 166 DIM factor. In addition, a 139 DIM factor charge will apply to all FedEx Ground shipments to Canada, regardless of size. The changes become effective on Thursday, January 1, 2015.
Since the vast majority of current ground shipments are less than 3 cubic feet, nearly all US shippers will be affected. In FY 2013, FedEx handled 1.07 billion ground packages.
The new ground DIM factor means that ground packages as little as 5-1/2" square will have a minimum billable weight of at least 2 lbs.
The big question: will UPS, with over 12 million ground packages each day, follow suit?
PARCEL will have a full analysis on the new dimensional charges, along with tips to reduce them, in an upcoming issue.
Along with the dimensional changes, FedEx also announced that FedEx Freight will increase their fuel surcharge by 3% points, effective Monday, June 2nd. Based on the current FedEx Freight fuel surcharge of 23.5%, this amounts to an increase of over 12%. FedEx Freight, at over 15% market share, is the largest LTL carrier in the US.
Doug Caldwell can be reached at doug.caldwell@afms.com or visit www.afms.com for more information.
PARCEL posted various other news releases/commentary by various experts on the subject this weekend; click the following links to read more.
Rob Martinez, Shipware
Jerry Hempstead, Consultant
Official FedEx News Release
Since the vast majority of current ground shipments are less than 3 cubic feet, nearly all US shippers will be affected. In FY 2013, FedEx handled 1.07 billion ground packages.
The new ground DIM factor means that ground packages as little as 5-1/2" square will have a minimum billable weight of at least 2 lbs.
The big question: will UPS, with over 12 million ground packages each day, follow suit?
PARCEL will have a full analysis on the new dimensional charges, along with tips to reduce them, in an upcoming issue.
Along with the dimensional changes, FedEx also announced that FedEx Freight will increase their fuel surcharge by 3% points, effective Monday, June 2nd. Based on the current FedEx Freight fuel surcharge of 23.5%, this amounts to an increase of over 12%. FedEx Freight, at over 15% market share, is the largest LTL carrier in the US.
Doug Caldwell can be reached at doug.caldwell@afms.com or visit www.afms.com for more information.
PARCEL posted various other news releases/commentary by various experts on the subject this weekend; click the following links to read more.
Rob Martinez, Shipware
Jerry Hempstead, Consultant
Official FedEx News Release
