eUpdate: Decoding Dimensional Weight: How New Rate Structures Are Squeezing E-Commerce Margins

Decoding Dimensional Weight: How New Rate Structures Are Squeezing E-Commerce Margins

By Jerzy Zawadzki

Shipping costs aren’t just about weight anymore, but also size. As of August 18, 2025, UPS and FedEx now round up every fractional inch of a package before applying the dimensional weight (DIM) formula for small package services. This means that even a tenth of an inch can raise billable weight and trigger higher surcharges. How this is impacting shippers.

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Join Us TODAY for a Free Webinar on Surviving the 2026 GRIs!

The 2026 GRIs are arriving amid one of the most volatile logistics environments in years. Rising carrier costs, tariff shifts, and capacity pressures are testing every shipper’s resilience. This webinar will explore how to prepare for both rate hikes and the larger forces disrupting supply chains. Register now, and we’ll see you at 1 PM CST!

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ICYMI: UPS Matches FedEx with 5.9%, but Key Differences Emerge

By Cory Davis

More than a month after FedEx announced a 5.9% General Rate Increase (GRI) effective January 5, 2026, UPS has followed suit with an equivalent headline increase. However, UPS’s adjustment will take effect two weeks earlier — on December 22, 2025 — and a closer look at the details shows that the two carriers’ pricing structures diverge in important ways across services, weights, and zones. Here’s what shippers can expect.

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