Skip to main content

Posts

Showing posts from April, 2015

Less is More < = >

< = > Less is More
As more and more people and things fill our living space, the more and more valuable the space becomes. No place is this more evident than in logistics, where the major players in parcel and freight distribution instituted a pay for space pricing metric called dimensional weight shipping.
Traditionally all parcel and freight moving ground in the U.S was charged by weight only,  so a small box measuring 10X10X10 that weighed 20 lbs cost the same to ship as a box that also weighed 20 lbs but measured 20X20X20 which is twice as big, but not anymore.
Shipping a 20 lb box measuring 20X20X20 today means you are going to pay for shipping 49 lbs not 20. Why? Because now you pay for shipping the dimensions of your box not the weight of your box, actually now you will pay the higher rate of the two, actual weight vs. dimensional weight, whichever is more. I have covered dimensional pricing before in this blog and talked about the factor. Both FedEx and UPS use the same…