FedEx will soon charge rates for all large packages based on their size, effectively raising prices for lightweight, bulky ground shipments.
FedEx plans to apply dimensional weight pricing, which takes into account a package’s volume, to all shipments beginning Jan. 1, 2015. FedEx currently uses the size-based pricing method for packages that measure at least three cubic feet. Other shipments are priced only according to their weight.
Under the policy, shipping rates are determined by size if dimensional weight exceeds the actual weight.
Retailers like Amazon.com often put small orders in large boxes, creating a challenge for FedEx, UPS and other shippers. Those lightweight packages are priced at lower rates but take up a lot of space on delivery trucks.
In addition to packages larger than three cubic feet, FedEx already applies dimensional weight pricing to all express shipments.
“We wanted to be sure we’re being compensated for the service we’re providing,” said FedEx spokesman Jess Burn.
