As reported by Post & Parcel:
UPS has announced that it will be reducing the “divisor” it uses for dimensional pricing on parcels that are greater than one cubic foot.
A package’s “dimensional weight” is calculated by multiplying its length, width, and height in inches and dividing the sum by the divisor. If the value for the divisor is reduced, you ended up with a higher value for the dimensional weight (which means higher costs for the shipper).
The current divisor is 166. This will be lowered to 139 from 8 January onwards. For US domestic services packages that are less than one cubic foot (or 1,728 cubic inches), the 166 divisor will still apply.
FedEx already announced back in September that it would be dropping its divisor from 166 to 139 (but its new rate will come into effect on 2 January).
UPS made its announcement about the new divisor in a notice posted on its website on Friday (18 November).
The notice included more details on the divisor change and some supplementary package rate change updates:
“Retail rates for UPS Air Service, UPS 3 Day Select and international Air services will increase December 26, 2016 and are available for download.
“UPS SurePost rates will increase December 26, 2016.
“Effective January 8, 2017, UPS will change the dimensional weight calculation for U.S. domestic services and UPS Standard from Canada import packages subject to UPS Daily rates. U.S. domestic services packages that are greater than 1,728 cubic inches will use a 139 divisor to calculate dimensional weight. U.S. domestic services packages less than or equal to 1,728 cubic inches will continue to use a 166 divisor to calculate dimensional weight. UPS Standard from Canada import shipments will use a 139 divisor to calculate dimensional weight.
“Effective January 8, 2017, the Additional Handling charge will be assessed for any package with the longest side exceeding 48 inches, instead of 60 inches.
“For packages shipped on or after January 8, 2017, transactional requests for refunds under the UPS Service Guarantee will not be paid where timely upload of package-level detail is not provided, as set forth in the UPS Tariff/Terms and Conditions of Service.
“Effective February 6, 2017, U.S. fuel surcharge will be adjusted weekly. Effective February 6, 2017, U.S. Import fuel surcharge percentage will increase and be assessed independently of U.S. Air and Export fuel surcharge.
Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.