Digging into DIM Weight Pricing and Changes for 2018

Posted on Dec 12, 2017 12:14:20 PM

While parcel dimensional weight and pricing have become standard practice in the shipping industry, the changes and increases in DIM charges are increasingly becoming a factor of concern for many shippers and their bottom line.

To some who may not be as familiar, DIM can appear to be just another way for carriers to squeeze more money out of shippers. However, DIM weight pricing can be advantageous and an overall simpler approach to calculating the cost of your packages with the carrier of your choice. 


What is DIM Weight?

Dimensional weight reflects package density, which is the amount of space a package occupies in relation to its actual weight. A recent article in Cerasis defines parcel dimensional weight as the calculation of a package’s “volumized” weight, otherwise known as its cubic weight. The motivation behind the implementation of DIM weight came as a result of lost opportunities for carriers derived from shippers sending low-weight packages in big bulky boxes with excess packing. Therefore, carriers calculate the volume of a shipment and divide it by a parcel dimensional weight factor, which varies for each carrier.

As a shipper, you still want to know the package’s actual weight as the actual weight is compared to the DIM weight and the higher of the two is what the carrier will use when determining shipping costs.

Benefits of DIM Weight

The DIM weight model requires shippers to be more effective with how they package their own goods. By right-sizing your packaging, you can protect your items and potentially save money on shipping supplies and materials. Also, by making sure their packages take up as little space as possible, these businesses get better at planning and more accurately forecasting shipping budgets. With a simplification of shipping costs comes a simplified budget too.


Calculating Costs

As a shipper, it is wise to do your research to find the carrier that will partner with you on all of your needs and budgets. Each carrier will have different terms of service and options of billing. Also, each carrier’s dimensional weight divisor will vary.

To determine the dimensional weight, multiply the package length by the width by the height, in inches. The result is the cubic size of the package. For most National Carriers, the DIM weight divisor factor for domestic or ground shipments is 139. Regional Carrier OnTrac offers a dimensional weight factor of 166.


EXAMPLE: Using 10-inches for the width, 10 inches for the height and 10 inches for the length.

 OnTrac.pngNational Carriers.png

Changes to DIM Weight

Potentially one of the most impactful changes for 2018 comes with the announcement that FedEx will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost packages, effective January 22, 2018. The change will align FedEx Express, Ground and SmartPost with that of UPS SurePost and UPS daily rates for all U.S. domestic services.

Looking at the chart below, furnished by PARCEL, while reviewing the examples shown, can help illustrate the impact of this change. Consider the following three SmartPost packages, all rated using the non-discounted FedEx SmartPost rates for Zone 5. The examples compare the 2017 non-dimensionalized rate to the 2018 dimensionalized rate.


The percentage cost increase is significant and illustrates how changes to DIM pricing are often more impactful than other changes. As it pertains to DIM Weight factors, this is one instance where greater is better. OnTrac offers a greater DIM weight divisor than national carriers, as well as, fewer fees and lower surcharges which can help keep costs in check and boost your bottom line.

Click HERE for further information on how OnTrac compares to the national carriers.


Topics: DIM Weight, dimensional weighing

Regional Parcel Carriers of the US.

Posted on Jan 5, 2015 12:42:00 PM

Mark Magill

Mark Magill, VP of Business Development, spoke at the American Supply Chain and Logistics Summit on December 8-11 at the Hyatt Regency in Dallas, TX. 

This show concentrated on high-level logistic professionals looking to network and learn more about the industry from thought leaders in the transportation field. 

Magill's presentation was titled "Regional Parcel Carriers of the US." 
The presentation focused on giving the audience alternative package delivery solutions to the national carrier duopoly in the major metropolitan areas of the US. 

This topic is of particular interest due to the new FedEx and UPS Dimensional Weight policy, which has been called, "the mother of all rate increases." 

Topics: DIM Weight, regional carriers, logistics

Shedding Some Light on DIM

Posted on Feb 1, 2012 11:12:00 AM

Rate increases have become commonplace in the shipping industry—somewhat of an expected change every year.

But these changes aren’t just percent increases.

Big shipping companies add a superfluity of extra fees—often called accessorial fees, and while a lot of these charges have come to light in recent years, there is one addition that many people do not pay attention to, and it may be costing them considerably more than the advertised rate increase.

It’s simply called: DIM.

What is DIM? DIM stands for dimensional weight. Essentially, a shipper will multiply the length, width, and height of a box, and divide it by the DIM Factor, to determine its shipping “weight”.

Sorting Pacakages

According to Jerry Hempstead of Hempstead Consulting, even though the tariff rate increase for UPS and FedEx was 5.9%, because of DIM weighting, rates for ground parcels (1-20lbs) shipped all over the country are likely to see a 7.5% increase. Because of this, in some cases, the increase could be nearly 9%.

With OnTrac, not only will you see fewer (and lower) accessorials, you get a higher DIM Divisor—meaning you can ship more for less. Check our rate comparison!

To read more about dimensional weighting and its impact on your shipping bill, click here for the article from DC Velocity.

Topics: DC Velocity, DIM Weight, DIM Divisor, OnTrac Shipping, OnTrac

Understanding DIM Weight and Tips for Minimizing Charges

Posted on Oct 9, 2009 11:29:00 PM

All package delivery carriers have the option to DIM Weight a package.  DIM Weight is short for dimensional weight.  Carriers take measurements of your package and divide it by an industry standard number to come up with the DIM Weight pounds to get the actual price of your shipment.  Dimensional weighing of packages is typically reserved for packages that are very light, but packed in a very large box.  The larger box takes up more space in a transportation vehicle and therefore needs to be invoiced at a higher rate. 

The formula looks like this: 

                    L x W x H  = DIM Weight                                   

                    DIM Divisor

For instance, if your package is L = 10, W = 10, H = 10, the equation would be:

                   10 x 10 x 10 =  5.15 


194 is the industry standard for the DIM Divisor.  Some carriers, such as OnTrac, have different DIM divisors.  The OnTrac DIM Divisor is 200, currently.  In the equation above, this small package would have a DIM Weight of only 5 lbs.  With rounding, a small difference in weight can make a difference in overall price.  As packages get bigger, the difference is larger, which translates into larger price differentials. 

Some tips for minimizing DIM charges:

1) Invest in Proper Packaging:  Often employees will use whatever box is available.  Sometimes, a small item will be packed in a very large box, which is sure to be weighed dimensionally.  Make sure you have boxes of many different sizes available so employees that are shipping can choose the proper size box for the shipment.

2) Educate Employees:  When you educate employees about dimensional weight, they will be better able to choose the right size box and packaging to ensure the safe transport of their packages as well as minimize shipping charges. 

Dimensional weighing of packages keeps the costs lower for all shippers.  By selecting proper packaging and educating employees, you can ensure that your company is making your shipping as cost-effective as possible.   

Topics: DIM Weight, dimensional weighing, DIM Divisor