Dimensional pricing is here for the long haul

Dimensional pricing is here for the long haul

Shipping is more complicated today than ever before. The adoption of dimensional pricing based on size (or cube) of shipping containers has been a game changer for the industry. But many companies have been slow to adjust their packaging operations to address the new reality. Lack of expertise doesn’t have to be an obstacle. Find a good partner and start cutting costs.

Why dimensional pricing is the new industry standard

Air freight relied on dimensional weight pricing for years because the amount of space available on planes was a more important factor than the weight of the parcels carried. For ground transport, traditionally, weight was a more important factor in cost as the sector was largely defined by business-to-business delivery to a limited number of destinations.

The explosion of e-commerce changed all of that.

As more and more lightweight packages have entered into circulation, ground carriers have been forced to contend with the problem of space—not simply weight.

The solution: dimensional pricing.

Dimensional pricing affects your bottom line

Dimensional pricing means that shippers are now paying for space on the truck, not just the weight of parcels. So inefficiencies in your packaging directly affect your transportation and delivery costs.

Two main factors lead to higher dimensional pricing:

    • Packaging that is too large – when you stuff your packages with ”air” and filler material you are now spending money on that wasted space
    • Poor configuration – arranging products in a configuration that leads to a higher volume (and therefore dimensional weight). Flatter is often better but each configuration should be based on the specific products being shipped

Companies that we’ve helped to revamp packaging operations have not been as impacted by the new pricing scheme. But businesses that continue to ship inefficiently are seeing higher and higher costs of delivery. This is the kind of business killing inefficiency that you simply cannot afford to overlook.

Packaging efficiency can lower or eliminate dimensional pricing costs

Knowing how to optimize your shipping operation to lower your costs can seem daunting. But it is an area of your business you can no longer afford to ignore.

We anticipate that carriers across the industry will continue to employ more sophisticated ways to evaluate the efficiency of shipments and penalize inefficient shippers with higher and higher prices.

At PLS, we partner with you to ensure that your packaging operation is working efficiently as cost-effectively. Through our specialized expertise and proprietary technology, OBI, we help you determine the exact size and specifications you need for your shipping containers —  lowering your shipping costs and saving you money.

Contact us to learn more about how we can work with you.

John is responsible for company efforts to drive value and differentiation in packaging for fulfillment, e-commerce, and manufacturing customers. He has 25 years of packaging leadership experience and has served at the helm of IQpack since early 2013.