How much does it cost you to ship the empty space in your boxes? Do you know the difference between dimensional weight and oversize fees that FedEx, UPS and DHL charge their customers? At what point is it less expensive to use a freight carrier instead of FedEx, UPS or DHL? Most importantly, do you know how to save money on your shipping expense by making good packaging decisions? The answers to these questions and more make up the body of this article.
Oversize charges only apply to ground shipments and dimensional weight adjustments only apply to air shipments. Let's say you are shipping a 20 pound, 30 x 30 x 30 inch box from New Orleans to Los Angeles via UPS ground. Your cost would be $114.75. If the same box weighed 90 pounds your cost would still be $114.75. If you shipped two 10 pound boxes each 15 x 15 x 15 inches via UPS ground your cost would be $46.34. Shipping the two smaller boxes instead of one large box would save you $68.41.
Use this formula to calculate ground oversize charges:
Length + 2 x Width + 2 x Height = Oversize Charge
83 inches or less = no oversize charge
84 – 107 inches = Oversize 1, a minimum charge of 30 pounds
108 – 129 inches = Oversize 2, a minimum charge of 70 pounds
130 – 165 inches = Oversize 3. a minimum charge of 90 pounds plus a penalty
166 or more inches can not be shipped via ground service.
Let's look at a 30 x 30 x 30 inch box, 20 pounds being shipped via FedEx, 10:30 AM next day delivery from New Orleans to Los Angeles. Your cost would be $516.35. Shipping two 10 pounds boxes of 15 x 15 x 15 inches via FedEx next day 10:30 AM would cost you $81.84. Your savings for using the two smaller boxes would be $434.51.
The formula for calculating dimensional weight or domestic air shipments is:
Length x Width x Height divided by 194 = DIM weight
The formula for calculating dimensional weight for international air shipments is:
Length x Width x Height divided by 166 = DIM weight
Lots of money can be saved by using smaller boxes instead of larger boxes for lighter weight shipments. Another way to save on air shipments that weigh over fifty pounds is to use air cargo service. For domestic air cargo shipments of 50 – 1000 pounds per pallet/box ,with low dimensional weight, can be up to 60% less than a trucking quote. Transit time is usually three days. Savings can be greater if the freight is picked-up on a Friday. If the class is over 250 the savings are better still. For international shipments air cargo can be less than FedEx, UPS and DHL if the weight is over 40 pounds. The destination country will determine at what weight/dimensions there is a cost savings. Verify that all customs fees, fuel and documentation cost are included in the quote. Compare your freight quotes against FedEx, UPS and DHL. If you are willing to have a pick-up on a Friday then put that information on your quote request. Indicate that you want an LTL and a deferred air quote.
There are ways to cut the cost of oversize three ground shipments almost in half while saving 20% - 45% on air charges. Other fees like the $7.00 - $16.00 weekly pick-up can also be eliminated if you know where to get your shipping services.
Paul Buisson has been helping small businesses save on their shipping expense for over three years. He specializes in helping start-up businesses and businesses that don't know anything about shipping. He can be contacted at 985-727-2992. |
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