Business Briefs

USPS Dimensional Price Changes Take Effect June 23

Earlier this year, the USPS implement price hikes across a range of products. At that time they postponed until June 23 a significant change in the way dimensional weight is calculated. If you ship package over a cubic foot, here’s what you need to know.

Dimensional weight or DIM Weight is for packages that are bigger than 1 cubic foot (1728 cubic inches).

The equation helps determine the cost of the space a package will take on a truck. It is calculated by multiplying a package’s length, width, and height and dividing by a set volumetric divisor. The current USPS DIM Weight divisor is 166.

If the DIM Weight equation yield is higher than the actual weight of the package, you must pay the DIM Weight. If not, you pay the actual weight.

Until now the USPS exempted shipments in Zones 1-4 from DIM Weight pricing. After June 23, all packages that are a cubic foot or larger will be subject to pricing.

Also, the formula will change. The DIM Weight divisor will change from 166 to 194. These changes could be costly for shippers who are not prepared for the price changes.

Companies are advised to fit packages in smaller boxes if possible. You can also determine if your shipment is below the cubic foot mark by multiplying the Length x Width x Height. If it is less that 1728, it is less that a cubic foot.

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