UPS And Fedex Will Increase The Cost Of Freight Express By 30%.

In 2015,

And FedEx will increase the freight rates for land pportation, and new rules will be introduced in December 29th and January 5th respectively.

The two companies implement the Dimensional weight pricing method, which is commonly known as DIM pricing, that is to calculate the freight rate based on the size of the package, not the weight.

It is understood that heavy weight is mainly reflected in the

In the freight section, when the volume of an item is too large and the weight is too light, it will be converted into weight in the pportation to collect the cost.

According to recent reports, industry experts say that the UPS and FedEx will increase freight charges, and 30% of its parcel will be affected.

The resulting average rate increase plus other annual fees and surcharges will increase the cost of pportation by more than 30%.

Parcel Appraisal & Negotiations CEO Jack Mitchell said that since 1980s, this is the biggest adjustment of freight rates.

The last big increase was due to the rise in fuel prices, which led to a two digit increase in pport costs.

Tim Sailor, a major shareholder of Navigo Consulting Group, said: "for small logistics companies, the price adjustment will have a greater impact."

Retailers and wholesalers are busy figured out what impact the new rules will have on pport costs, profit margins and sales.

In this regard, they can take the following measures to minimize the impact: re sign the freight contract, use more efficient packaging, and give up those goods that have risen sharply in the price adjustment.

EBags is a franchised handbag.

Robert Cassidy, the chief operating officer of online retailers and suitcases and accessories, said: "we have done everything we need to do."

He said the new rules affected the pport business of eBags 20%.

At present, the volume pricing is applicable only to the ground pportation parcel with a size above 3 cubic feet and all types of air parcels.

UPS and FedEx extend this new rule to all packages that are pported through the ground.

Industry experts say that about 75%-90% of Internet sellers will be affected.

In order to minimize the impact of pportation costs and overall financial position, many shipments are embarking on a more efficient warehouse management system, using new packaging materials to provide buyers with new express ways to find companies that can replace UPS and FedEx.

At the same time, the new policy also increased other freight costs.

Ken Wood, founder of LJM consultancy, points out that the expansion of the volume charging range is consistent with the annual growth of UPS and FedEx fees.

This year, the basic rates of the two companies increased by an average of 4.9%, but the average annual rate of increase for most shippers is much higher than that.

This is because the average rate of increase of 4.9% covers all modes of pportation and parcel size, and the inclusion rate of less than 70 pounds is more than 3%.