UPS has changed how it calculates shipping costs. Here's what your business needs to know.
To determine the shipping cost for UPS Ground and UPS Standard to Canada packages, UPS now uses dimensional – or dim – weight. (UPS has used dim weight for UPS Air services and UPS Standard to Mexico ground services for years.) The billable weight is now the dimensional weight or the actual weight, whichever is greater. So, it is important for you to enter both your package's dimensions and weight into the UPS shipping system. This will reduce unexpected correction charges to your invoice.
Dimensional weight takes into account the amount of space a package occupies and will apply if the space occupied is more than the actual weight.
Dimensional weight takes into account the amount of space a package occupies, and dim weight will apply if the space occupied is more than the actual weight. Why the change? E-commerce shipping trends have led to a decline in package densities – companies often ship smaller items in larger boxes. With these less-dense packages, cargo space isn't filled as efficiently and cost per package increases.
Tip: Evaluate your company's packaging to see whether reducing package size and excess packaging materials can lower your shipping costs. UPS® Packaging Solutions can help customers optimize the size of packaging to minimize dimensional weight while ensuring packages are protected in transit. Or, consult the UPS Packaging Advisor for more information.
How to calculate dimensional weight in pounds
- Multiply the package length by the width by the height.
- For domestic packages, divide by 166. For international shipments, divide by 139.
- Round fractions up to the next whole pound.
- Your UPS shipping system will calculate the billable weight for you.
Learn more about dim weight.
The UPS Solutions Resource Center for Small Businesses also offers advice on efficient packaging and shipping.