Carriers Tighten Oversized Package Fee Calculations
FedEx and UPS rolled out new surcharge rules this month that could hit more shippers with oversized package fees. Both carriers are now using cubic volume measurements in addition to dimensional weight when deciding which packages get slapped with extra charges.
The change matters because it adds another layer to how carriers evaluate whether a package qualifies for surcharges. Previously, dimensional weight (length × width × height divided by a dimensional factor) was the primary metric. Now, actual cubic volume becomes part of the equation for certain surcharge assessments.
What This Means for 3PL Operations
For fulfillment centers and 3PLs, this tweak creates a new pressure point. Bulky items that might have squeaked under surcharge thresholds before could now trigger additional fees. Think furniture components, sporting equipment, or anything with awkward dimensions that doesn't pack dense.
The timing also matters—peak season may be over, but these rules stick around. Operations teams will need to revisit how they classify and route oversized inventory, and potentially renegotiate client agreements that don't account for these expanded fee triggers.
The practical impact? More packages falling into surcharge territory means tighter margins on fulfillment contracts and potentially difficult conversations with clients about who absorbs the extra costs. Smart 3PLs are already auditing their current shipment profiles to identify which SKUs might newly qualify for these charges.
