LTL Dim Weight

When talking about shipping less than truckload (LTL) packages, what is more important: package weight or package size? Well, since the start of 2015, both. FedEx and UPS own the majority of the LTL market, and as of January they have decided that they will start using dimensional weight to measure packages to determine their shipment prices. Whichever is greater, the package weight or the package size, will be the determinant in what consumers pay for shipping their packages. It is only a matter of time before all LTL carriers will follow suit.  

One may ask why there will be a change in shipping pricing, but the real story here is the change in consumer shopping habits. E-commerce has jumped up considerably, calling on the need for more LTL deliveries, as brick and mortar stores go through a bit of a slump. Shopping online is convenient where you can buy virtually anything you want and need online. This makes it easier for people to enjoy or pursue other activities. 

With this jump in business, LTL carriers need to capitalize on this opportunity. What does this mean for the consumer? The consumer will be paying more to ship packages. What does this mean to the retailers and/or businesses who are selling, packaging, and shipping? They have to start re-thinking how they will package your shipments. For example, less fluff and smaller boxes will be a step in the right direction to counter-act the dim weight pricing because nobody wants to pay extra money to ship a pillow because the box is bulky. 

Dim weight is something we all will have to keep an eye out for now that it is becoming the way LTL carriers are pricing our shipments. Smart packaging will be important to keep prices as low as possible. Only time will tell, if the dim weight strategy will raise the prices of the items you are purchasing online or if shipping prices will rise to new heights that will force the consumers back into the brick and mortar stores. Sometimes price outweighs convenience. 

About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.

 

Contributor: Hailey Mulloy