Shipping Cost Calculator. Know Your Savings Before You Negotiate.
Most shipping carriers use DIM to calculate the rates they offer, which takes the multiplied value of length x width x height and divides the total by a standard divisor. But, did you know that you can negotiate that divisor?
Contract Analysis, Negotiation, and Compliance Made Easy
Our proprietary technology, powered by over $1Billion in live market data, has propelled us to be the industry leader in negotiation software and results. We help shippers, spending $100K to $100M annually, put an objective eye on their bottom line by cutting shipping costs faster, deeper, and easier than they could on their own.
We don’t need to tell you that shipping prices are on the rise. UPS & FedEx's latest price increases took effect on December 27, 2022 and January 2, 2023 respectively. These increases included changes to additional and value-added charges, like address correction changes, additional handling fees, and large package surcharges. While rising costs may seem out of your control, they don’t have to be. At ShipSigma, we discover savings for our customers with AI-powered parcel invoice audit software and data-driven contract engineering.
Dimensional weight, also known as "volumetric weight," is a way to calculate the weight of a package based on its size, rather than its actual weight. This method is used by shipping companies to ensure that they are charging customers a fair price for shipping larger, lightweight items.
The formula for calculating dimensional weight is:
Dimensional weight = (length x width x height) / Dimensional Factor
The dimensional factor is a number set by the shipping company, which is typically around 139 for UPS and FedEx.
For example, if a package has dimensions of 15 inches x 10 inches x 8 inches, and the dimensional factor is 139, the dimensional weight of the package would be:
(15 x 10 x 8) / 139 = 11.5 lbs
So, even if the package's actual weight is only 5 lbs, the shipping company would charge the customer based on the dimensional weight of 11.5 lbs.
Dimensional weight can affect shipping cost, as the cost to ship a package is often based on whichever is greater: the package's actual weight or its dimensional weight.
Reduce Your Shipping Spend with ShipSigma
ShipSigma makes it easy to hold your carrier accountable. How do we do it? With our contract compliance and fully automated invoice auditing software and. Here’s how it works:
- Regularly updates with your latest data to eliminate human error
- Compares your invoices and payment records to your contracted rates
- Identifies discrepancies where you paid more than you should have
- Requests refunds for incorrect charges or incomplete services from your carrier
- Uses AI to analyze shipping trends to reduce errors in the future
- Empowers your team with data to negotiate more favorable contracts in the future
Parcel invoice audits bring immediate savings, and when paired with carrier agreement negotiation, they can save your business an average of 25% on shipping costs. When you begin to calculate those savings the choice is easy. Try ShipSigma for free today.