At present, the company calculates a package’s dimensions by multiplying its length, width and height in inches and then dividing the total by 166. In January, that denominator will change to 139, causing a higher dimensional weight. The shipper will have to pay based on the parcel’s dimensional or actual weight, which ever is higher.
The formula change represents an effort to increase compensation for handling lightweight, yet bulky packages that take up a large amount of space on a plane or ground vehicle.
More articles on supply chain:
Senate committee to examine Mylan’s Medicaid rebates
Trucking volumes rebound in August
5 reasons insurance claims should include UDIs