Small Parcel – UPS/FedEx Domestic and International
For those that ship small parcel, we are all familiar with UPS and FedEx small parcel service. But might not be familiar with their pricing and how their systems work. First and foremost their pricing and systems are pretty much identical. Also, when one company raises prices, the other company with follow suit. They all have USA ground services as well as 1-3 Day Air, which is convenient and pricey, more so in these last few years than ever before. And they can; due to demand and convenience of their services.
165 DI Rule
Small Parcel is considered items that are under 165 Dimensional Inches (DI) and/or 150lbs of physical weight. DI is a formula that takes the girth (Twice of the two smaller dimensions of your box added together) then adds the largest dimension, and total cannot exceed 165 total inches. After 165 DI Rule, or 150lbs of actual weight, small parcel is no longer an option. You are relegated to freight, a much more costly method for one just one or two items that might miss the dimensional or actual weight cutoff.
130 DI Rule
Items ship at their most reasonable costs if you stay under the 130 DI rule. If you exceed 130 DI with your packaging, you are charged an oversized fee ($70-100), plus the cost of shipping the box for its volume size, not necessarily it weight.
Dimensional Weight
Dimensional Weight (DW) or Actual Weight (AW) whichever is greater has been the rule for small parcel for about 15 years now. Formulas are used to figure out DW. AW is simply using a scale. It used to be that 194 (prior 2007) was used as the divisor for ground DW, then 166, and now 139 (2017). Both carriers use the 139 divisor, thus charging more DW for the same size box. If you are wondering why ground rates have increase so much over the last 10 years. It’s because the smaller divisor, plus the 4-7% annual rate increases have literally doubled the cost we all pay for the same service just 10 years ago. By multiplying the 3 dimensions of a box, divided by the divisor, you will realize that a 24” cube box went from 72lbs DW to 100lbs DW over the last 10 years (50% DW increase) plus 5% average annual rate increase over the same period. With DW the carriers are guaranteed revenue per square foot of space taken up in their trucks and planes.
USA Freight LTL and FTL
After items too big or heavy for UPS/FedEx comes freight shipping. And that is not for the faint of heart. It is a world away in terms of costs and simiplicty in relation to small parcel. Even your local shipping centers (ex:PostNet, UPS Store, Aim Mail Center, Postal Annex) will tell you that costs and packaging are way different. First and foremost is the costs of residential liftgate delivery as well as the costs of the first few hundred pounds. Then there is the packaging to make sure your item arrives in the same condition as it was when it was sent. “Strapping to a pallet” is the most common statement but also the worst option for anything other than a load of boxes. “Less Than Load” or LTL is the most common measure used in the freight business, and costs associated are determined by many factors, not just weight. If not packaged, classified, and weighed properly always expect a supplemental bill after shipping that can easily double what you thought you were paying. “Full Truck Load” or FTL is a whole 53ft of tractor trailer arriving and departing anywhere in the USA. It has a maximum load capacity of about 44,000 lbs for a dry van, and much more for a flat bed. A freight forwarder would be able to assist in creating and rating your load.
Saving $$ on LTL Freight – Inbound/ Outbound
Our freight forwarding partners can possibly save your company money by arranging the Bill of Lading (BOL) over what you are currently paying direct to the carrier. In many cases it would be that same carrier (ex: UPS Freight or FedEx Freight) that you are currently using, but they can get the job done less expensive due to contract rates vs your currently quoted rate.They can outbound from the desert, or inbound to the desert, from any city USA or any shipment. Also, having a local presence to relate questions, problems, concerns (as there could be many) is really what makes freight shipping successful.
Import Export - Canada/Mexico/World
When importing to the USA, always have the shipper in the country that is doing the exporting send directly to the USA port of entry (POE). It is always more cost effective to pay for “World door to USA port”, meaning export location to USA POE. World Door to USA Door is more costly, though easier and dp expect a supplemental bill after all is completed that includes items that cost more than what was “estimated” when you asked for “Door to Door” costs. Once shipment has landed, the “Port to Door” costs are tabulated by the “Importing Agent of Record” stated on the BOL. Those costs are universal and similar to any port. Exporting has the same cost structure. Exporting to Canada requires a customs broker for commercial items, but will not allow a broker for personal items. Canadian residents will have to clear their shipments personally either at the first border warehouse (ex:Vancouver – Toronto) or pay to have it travel “in-bond” to cities farther from the border (ex: Calgary – Edmonton). A freight forwarder would be able to assist in the BOL wording, shipping and documentation. Exporting to Mexico requires you to document either new or used, with used being personal effects that can arrive under and only a “Menaje De Casa” once duty free. All other times you will pay duty. Mexico duty ranges from 15-35% plus transportation, forwarding and customs broker costs. Many just drive across, but you must still have documentation. World exporting is mainly done by ocean shipping safely to any port in the world. Crate sizes need to be build to fit the items being shipped, as you will pay by the Cubic Meter (CM) and will have to have the shipment brought to the port by a freight forwarder and or trucking company. International Air Frieght is also a common, but expensive method for export. Contact a freight forwarder to assist in determining your “Dim Weight” and shipping costs.
For those that ship small parcel, we are all familiar with UPS and FedEx small parcel service. But might not be familiar with their pricing and how their systems work. First and foremost their pricing and systems are pretty much identical. Also, when one company raises prices, the other company with follow suit. They all have USA ground services as well as 1-3 Day Air, which is convenient and pricey, more so in these last few years than ever before. And they can; due to demand and convenience of their services.
165 DI Rule
Small Parcel is considered items that are under 165 Dimensional Inches (DI) and/or 150lbs of physical weight. DI is a formula that takes the girth (Twice of the two smaller dimensions of your box added together) then adds the largest dimension, and total cannot exceed 165 total inches. After 165 DI Rule, or 150lbs of actual weight, small parcel is no longer an option. You are relegated to freight, a much more costly method for one just one or two items that might miss the dimensional or actual weight cutoff.
130 DI Rule
Items ship at their most reasonable costs if you stay under the 130 DI rule. If you exceed 130 DI with your packaging, you are charged an oversized fee ($70-100), plus the cost of shipping the box for its volume size, not necessarily it weight.
Dimensional Weight
Dimensional Weight (DW) or Actual Weight (AW) whichever is greater has been the rule for small parcel for about 15 years now. Formulas are used to figure out DW. AW is simply using a scale. It used to be that 194 (prior 2007) was used as the divisor for ground DW, then 166, and now 139 (2017). Both carriers use the 139 divisor, thus charging more DW for the same size box. If you are wondering why ground rates have increase so much over the last 10 years. It’s because the smaller divisor, plus the 4-7% annual rate increases have literally doubled the cost we all pay for the same service just 10 years ago. By multiplying the 3 dimensions of a box, divided by the divisor, you will realize that a 24” cube box went from 72lbs DW to 100lbs DW over the last 10 years (50% DW increase) plus 5% average annual rate increase over the same period. With DW the carriers are guaranteed revenue per square foot of space taken up in their trucks and planes.
USA Freight LTL and FTL
After items too big or heavy for UPS/FedEx comes freight shipping. And that is not for the faint of heart. It is a world away in terms of costs and simiplicty in relation to small parcel. Even your local shipping centers (ex:PostNet, UPS Store, Aim Mail Center, Postal Annex) will tell you that costs and packaging are way different. First and foremost is the costs of residential liftgate delivery as well as the costs of the first few hundred pounds. Then there is the packaging to make sure your item arrives in the same condition as it was when it was sent. “Strapping to a pallet” is the most common statement but also the worst option for anything other than a load of boxes. “Less Than Load” or LTL is the most common measure used in the freight business, and costs associated are determined by many factors, not just weight. If not packaged, classified, and weighed properly always expect a supplemental bill after shipping that can easily double what you thought you were paying. “Full Truck Load” or FTL is a whole 53ft of tractor trailer arriving and departing anywhere in the USA. It has a maximum load capacity of about 44,000 lbs for a dry van, and much more for a flat bed. A freight forwarder would be able to assist in creating and rating your load.
Saving $$ on LTL Freight – Inbound/ Outbound
Our freight forwarding partners can possibly save your company money by arranging the Bill of Lading (BOL) over what you are currently paying direct to the carrier. In many cases it would be that same carrier (ex: UPS Freight or FedEx Freight) that you are currently using, but they can get the job done less expensive due to contract rates vs your currently quoted rate.They can outbound from the desert, or inbound to the desert, from any city USA or any shipment. Also, having a local presence to relate questions, problems, concerns (as there could be many) is really what makes freight shipping successful.
Import Export - Canada/Mexico/World
When importing to the USA, always have the shipper in the country that is doing the exporting send directly to the USA port of entry (POE). It is always more cost effective to pay for “World door to USA port”, meaning export location to USA POE. World Door to USA Door is more costly, though easier and dp expect a supplemental bill after all is completed that includes items that cost more than what was “estimated” when you asked for “Door to Door” costs. Once shipment has landed, the “Port to Door” costs are tabulated by the “Importing Agent of Record” stated on the BOL. Those costs are universal and similar to any port. Exporting has the same cost structure. Exporting to Canada requires a customs broker for commercial items, but will not allow a broker for personal items. Canadian residents will have to clear their shipments personally either at the first border warehouse (ex:Vancouver – Toronto) or pay to have it travel “in-bond” to cities farther from the border (ex: Calgary – Edmonton). A freight forwarder would be able to assist in the BOL wording, shipping and documentation. Exporting to Mexico requires you to document either new or used, with used being personal effects that can arrive under and only a “Menaje De Casa” once duty free. All other times you will pay duty. Mexico duty ranges from 15-35% plus transportation, forwarding and customs broker costs. Many just drive across, but you must still have documentation. World exporting is mainly done by ocean shipping safely to any port in the world. Crate sizes need to be build to fit the items being shipped, as you will pay by the Cubic Meter (CM) and will have to have the shipment brought to the port by a freight forwarder and or trucking company. International Air Frieght is also a common, but expensive method for export. Contact a freight forwarder to assist in determining your “Dim Weight” and shipping costs.