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“Small U.S. firms may struggle with new UPS, FedEx dimensional prices” on Reuters.com

12/29/2014

By Nick Carey

United Parcel Service Inc and FedEx Corp are rolling out new pricing systems to curb online retailers' large package sizes, but industry experts warn many small firms are unprepared and could pay up to 50 percent more for shipping.

Starting Monday, UPS will no longer charge for U.S. ground packages under 3 cubic feet by weight but by their "dimensional weight."

Memphis-based FedEx will roll out the same change on Jan 5.

Instead of simply weighing a box, retailers must multiply its length by its height and width, and then divide that by 166 to reach its dimensional weight.

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