By now, you are probably aware of the dimensional weight charges implemented by big shipping carriers UPS and FedEx back in January. Under these changes, packages less than 3 cubic feet are subjected to dimensional weight pricing, also referred to as DIM pricing and DIM charges. DIM pricing calculates shipping costs based on a package’s volume— or how much space it occupies— in relation to its weight.
DIM charges, which have been applied to air shipments and larger ground parcels for a while, are now being applied to smaller ground parcels due to the increase in e-commerce sales. The continued popularity of online shopping has led to a steady increase in the volume of packages handled by carriers like UPS and FedEx, resulting in higher operating costs for these carriers. According to Alan Gershenhorn, UPS executive vice president and chief commercial officer, dimensional weight pricing “enables us [UPS] to more appropriately align rates with costs which are influenced by both the size and weight of packages.”
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