The ability to price packages by size rather than simply by weight could be important for LTL carriers (Less-than Truckload). Often these packages are not too heavy, but take up space and ‘cube’ out the truck rather than ‘weigh’ it out. It takes special machines to determine the size of packages quickly and automatically. some of these are being tested now. In 2015 it is expected that several carriers will start the move to price by dimensions as well as weight. This article summarizes the istuation and has other links to info about the issue.
People in LTL hope that dim pricing will allow more rational pricing for their cargo, that will lead to more profit. I’m not sure. The business is pretty competitive, and making pricing more complex may drive business to a carrier that uses a simplified pricing scheme. Large shippers will probably be affected the most.
Anyone have an opinion?
Supply Chain and Logistics 