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Materials Handling: Adapting to Dimensional Courier Pricing

Posted May 29, 2015

Under Logistics & Supply Chain Issues


(Dave Luton – MM&D)

Almost a year ago the major couriers announced a major change for the pricing of packages. They allowed a long time for implementation to permit their customers time to adapt. By now some of the costs of the new policy should start to show and customers should take steps to counteract these added costs, if they have not already adapted.

Couriers implemented dimensional pricing to counteract the effects of more business-to-consumer shipments – thanks to e-commerce – which are inefficient compared to the more traditional business-to-business shipments.

The vast majority of freight shipments are traditionally subject to density pricing. The exception was smaller-sized courier shipments, although oversized cube and weight shipments were always subject to surcharges. With more e-commerce couriers were forced to correct this oversight and subjected all shipments to density-based pricing. Click here to read more.