Today, most parcel shipping carriers have altered their method of calculating the weight and the price the shipper pays of packages shipped to something called dimensional weight, commonly referred to in the industry as DIM weight.
In 2014, major shipping carriers announced this DIM weight pricing model for air and ground parcel shipping services. For several years, shipping customers have been charged the greater amount between actual weight and DIM weight. The rules for DIM weight, however, have become stricter - with financial consequences for shippers.
What is DIM weight?
The DIM model is based on a formula which establishes a minimum charge for the cubic space a package occupies. Dimensional weight price calculations are composed of three fundamental components: the size of the shipping box, the box’s actual weight and the object inside the box.
How is DIM weight calculated?
The United States Postal Service® uses the following DIM weight formula: length x width x height divided by 166, rounded up to the nearest pound. This DIM weight formula applies to Priority Mail® parcels and packages traveling more than 1,000 miles from their point of origin.
Major commercial shipping carriers also use this DIM weight calculation formula to determine the shipping amount customers pay. However, both FedEx® and UPS® have adjusted its formula over the years lowering the dimensional divisor.
The lower the dimensional divisor, the higher the shipping cost. Currently the formula is: length x width x height divided by 139, rounded up.
What is the purpose of DIM weight?
It has become increasingly important for shippers to optimize not only the weight of the items that are being shipped, but also the size of the packages to ensure they can carry the most number of parcels at any one time across their supply chain.
Carriers discovered they were delivering boxes that were much larger than required for the efficient delivery of the products they contained. This outsized box phenomenon caused shipping carrier’s vehicles to reach their maximum space capacity long before they reached their physical weight capacity. Dimensional weight pricing financially motivates shipping customers to select the proper sized box for the contents it carries. DIM weight was adopted as a way of incentivizing customers to match the size of the packaging being used with the size of the item being shipped.
As a result, it is no longer economical for a shipping customer to place a lightweight item in a large box. If the dimensional weight exceeds the actual weight, the shipping rate will be based on the dimensional weight instead.
In other words, the bigger the box – regardless of the size of its contents – the higher the shipping price. For example, a lampshade’s actual weight is three pounds. The dimensions for this lampshade in a box are 15’’ x 11’’ x 11’’. Using the major parcel carrier’s calculation of 15 x 11 x 11 divided by 139, the dimensional weight of this package becomes 14 pounds (13.05 pounds rounded up). That is almost five times the lampshade’s actual weight.
What items are impacted by DIM weight?
It’s worth noting that dimensional weight can affect non-box shipments as well. Books, pamphlets or other contents that fit into envelopes and parcels can be DIM targets. Carriers use scanning technology to measure all angles of those shipments, essentially creating a virtual box which could be priced at DIM levels. In essence, a mailer with dimensions greater than 12” x 12” x 1” can be subject to dimensional weight.
How can I control or lower DIM Weight costs?
There are several easy-to-implement packaging and operations changes that can help control shipping process costs.
1. Minimize wasted space either by combining shipments or decreasing the size of shipping boxes whenever possible. A good way to start is to instruct employees to calculate the dim weight of packages using a dimensional weight calculator or use a tool like the dimensional weight scale to quickly scan and generate the dim weight of a package. These behavioral changes can create awareness of dim weight excesses and where there is the potential to reduce shipping costs.
2. Stop using manual airway bills. This simple operational adjustment eliminates possible mistakes employees who are not aware of dimensional weight pricing may make.
3. Look into flat rate boxes. FedEx and UPS both offer a flat-rate box option with rates based on the box you use. For flat-rate boxes weight doesn’t apply, if it fits it ships.
4. Consider return shipment packaging in your package planning. As online shopping continues to grow, most retail consumers carefully scrutinize ecommerce shipping policies and pay special attention to merchandise returns policies. Statistics show that 20 to 25 percent of all shipments are returns; potentially a significant drain on the ecommerce revenue stream.
Looking for more detail on DIM weight? Download the Definitive Guide to Dim Weight here.
Have a specific dimensional weight challenge that you need help with? Contact one of our mailing and shipping professionals for assistance on lowering your overall costs and optimizing your physical shipping processes today.
