When it comes to calculating freight costs, weight is only one part of the overall equation. Package delivery
companies such as UPS and Fed Ex use dimensional weights to determine shipping rates, which can have a significant impact even on small packages. Not only can dimensional weights result in higher base rates, but added fuel surcharges are calculated based on the higher of either a shipment’s actual weight or dimensional weight.
For less-than-truckload shipments, a major factor in determining freight class is the freight’s density. The lower a shipment’s density, the higher its freight classification, which will result in higher charges. In other words: the less your package weighs, the more you are paying in freight fees per cubic foot to get it to the customer.
Some companies, aiming to save on material costs, opt for a “one size fits all” approach to their packaging. They might purchase one size of box for multiple products, because the higher the quantity of that specific box they purchase, the lower its cost per piece. Maybe there’s an inch or two of space at the top or sides in the box, but if nothing’s getting damaged in transit, who cares, right?
The problem is that the air space inside that box is taking up space on the truck—space that the carrier is charging for. If a company is shipping as much “air” as it is product, or using an inexpensive “one size fits all” box to save on material costs, it may be costing them more in freight fees in the long run. Additionally, this wasted space reduces the overall capacity of the truck, creating added trips and an increased carbon footprint.
If you suspect that this is an issue for you, VAP can help your company optimize its packaging for shipping. Our customer care and design team would be happy to take a look at your products and packaging needs to help ensure that you are striking the ideal balance between packaging and freight costs.
Jon Dresel, “The Problem Solver at VAP, is a strategic point of contact for customers, and effectively and quickly solves problems on the production floor.