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Dive brief:
- FedEx is planning to change how weighted weighted for next month packages, a move that can put more price pressure on some shipments.
- To measure the next weight, any fraction of one inch or centimeter from August 18, will be away from the next inch or centimeter website. Currently, the dimensions are less than half of the inch.
- “This change is currently applied with round logic to measure weight for further compatibility between measuring dimensions and weight,” FedEx said in an email to provide a chain dive.
Dive insight:
The rechargeable weight of a FedEx package can be greater than the actual or the next weight, so the trick can increase the shipping cost. It may also lead to more packages for additional thresholds for additional costs, including additional additional costs and unauthorized cost of land.
“Transports often adjust their packaging to place under the threshold for bulk cargoes,” said Thomas Andersen, a partner and EVP supply chain service in the LJM Group. The future set of FedEx may lead them to additional settings.
“When everything gets away, all this effort may get out of the door,” Andersen said in an interview.
FedEx also plans to increase US entry processing fee from $ 1.50 to $ 2.50 on August 18. This fee is evaluated for imports to the country either in any cargo or per package depending on the services.
FedEx’s planned tricks are among several price adjustments that are moving in 2025, including bulk cargoes. UPS aims to change how to calculate large packages and additional costs on August 17, with the additional items that the cubic inch is a package rather than length and gorge.
According to the TD Cowen/AFS transport index, new cost barriers and new cost changes have contributed to increased land transport rates this year. Some transports are changing volume to slower but cheaper services to ignore the impact of cost pressures.
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