The freight charge for FedEx and UPS packages are billed based on service, distance (measured in zones) and weight. The weight is determined by comparing the actual weight with the dimensional weight (the weight equivalent based on the length (L), width (W), and height (H) of the package).
Most companies know they can negotiate a higher DIM divisor, so that low-density shipments are not as impacted by the DIM adjustment. An alternative approach to consider, especially for companies who have a small package profile is to get a DIM threshold. A DIM threshold means that packages below a certain size (determined by multiplying L*W*H) do not receive a DIM adjustment and are billed based on the actual weight.
Depending on your package profile you benefit from pushing harder to increase the DIM divisor or getting a DIM threshold instituted (or some combination of the two).
Note that the only shipments that matter for these considerations are ones that have their weight adjusted by the DIM divisor. Companies who ship dense packages may not be impacted by the DIM divisor at all and would do better focusing on other areas of their contract.
Background The freight charge for FedEx and UPS packages are billed based on service, distance (measured in zones) and weight. The weight is determined by
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