This shipper has a lower discount with their preferred carrier than the shipper for Package A. The standard DIM divisor for both carriers is 139, but did you know you can optimize it? The shipper of Package C does - read on to find out why that matters. Your dimensional weight is calculated by multiplying the length, height and width of the package and dividing that number by the DIM divisor. The carrier will always charge you the higher of the two. This package was charged a base cost for the dimensional weight (35 lbs) instead of its actual weight (25 lbs). This shipper could be in for a surprise if they’re not watching their dimensions and staying aware of the impact on their costs. There are many other factors that affect your spend.) (Remember: Don’t stress too much over the discount tier you optimize. The shipper doesn’t have a discount with FedEx, meaning they’ll not only pay more, but they could be short on options and flexibility if their UPS relationship isn’t working out. Your discount is your base (optimized) discount plus your earned discount, which is based on your volume and can disappear without warning if your volume drops off. Package A: DIM Weight and Additional Handling add upįirst, this shipper has optimized a competitive UPS discount, but optimization is only half the battle.

We’ll see how different shippers are affected by their profiles. To see the difference that package weights, earned discounts, contract optimization and more make in your shipping spend, let’s take a look at three fictional packages. Yes, the carriers publish rate guides annually, but the amount you actually pay depends on that crucial shipping profile your carrier has built about you - and your ability to understand it yourself. The deal you get with your carrier is almost entirely dependent on your shipping profile: what you ship, where you ship it, the services you use, and many other factors that make your business unique to a carrier. Carrier pricing is dynamic and different for everyone. Everybody wants to find ways to save, of course.īut here’s the kicker: There’s no one-size-fits-all magic wand for getting the best rates or biggest discounts from UPS or FedEx. A lot of people come to our blog after searching for “UPS vs FedEx rates” or “carrier invoice audits,” looking for answers about how to get shipping costs under control.

Fedex zone chart