SIZE DOES MATTER, WHEN IT COMES TO SHIPPING

 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 usually apply to shipments that have a length and girth of 130 inches or more.   Penalties can range from $50.00 - $70.00.  If any one side is over 48 inches you can be hit with an excessive length charge.  These charges can be $7.00 – $9.00.  One of the latest fees is for an excessive secondary length with an additional fee.

It is always less expensive to ship two smaller boxes that are under the 130 inches length and girth than one box that falls into the oversize category.

Use this formula to calculate ground oversize charges:

Length + 2 x Width + 2 x Height = Oversize Charge

130 – 165 inches  = Oversize

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 150 – 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 100 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.  One advantage of using one of the three small package carriers for international air shipments is the customs clearance charges are free or greatly reduced.   This could be a $150.0 - $170.00 value.  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.

BIO

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 888-559-8820.