Effective January 22nd 2018, FedEx has announced it will be changing the SmartPost service from weight-based to dimension-based rating. As you may recall, several years ago they changed the majority of their services to dimension-based rating.
FedEx is changing their strategy to better handle lightweight and bulky packages that use significant amounts of spaces aboard their delivery vehicles. The e-commerce boom has contributed to this pricing strategy being extended to their SmartPost service.
Dimensionally based rating works by calculating the length x width x height, in cubic inches, and dividing by a common divisor typically 139. By using this pricing strategy FedEx anticipates they can more properly price the true cost of delivery.
Along with the annual rate increases, effective January 1st 2018, FedEx has announced there will be a 2.5% shipping surcharge applied to any packages that are billed to a third party that is neither the shipper nor the consignee. This move is to counter companies like 3PL’s, from using a larger e-Commerce companies deep discounted shipping rates.