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“FedEx Hike in Ground Rates Could Boost Business for U.S. Postal Service” on Forbes.com

05/18/2014

By Robert Bowman

FedEx Corp.’s recent decision to incorporate package size in the pricing of its ground service will result in a significant boost in shipping costs – but it could also open up competitive opportunities for the U.S. Postal Service.

FedEx surprised shippers and industry observers with the announcement that it will adopt dimensional weight pricing for all ground shipments as of Jan. 1, 2015. Up to now, it has limited that formula to packages measuring three cubic feet or greater.

“Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume – the amount of space a package occupies in relation to its actual weight,” FedEx said.

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