How rates are calculated

The intent of this article is to illustrate how rates are calculated on shipments. This includes cardboard and polybag packaging material types. Some of the zone examples mentioned are specific to the US market, and any price references or additional information is available within the service guide.

The first step is to determine zone. Another way to think of zone is travel distance. Within 150 miles (241 kilometers), for example: Miami Florida to Fort Lauderdale Florida is zone U02. Miami Florida to Los Angeles California is zone U08. Domestic shipments within the contiguous US generally target zones U02 through U08, where each number 2, 3, 4, and so forth corresponds to a travel distance between the ship from origin and ship to destination. International zones are region or country-specific. N01 for trade routes to and from China. G01 for Japan. Use the country tables within the service guide and the zone lookup tool on the website to determine the zone.

The next step is to determine the billable weight. For single package shipments, this is easy. Billable weight is the greater of actual weight vs dimensional weight. Start with the measurement of the actual weight. Use a scale. Round up partial values as whole numbers. For example, 5.4 pounds rounds up to 6.0 pounds.

Next, find the dimensional weight. To do so, measure the length of the box, the longest side of the package. Next measure the height and depth of the shipment, the two, other opposing sides. Multiple the three numbers together and divide by 139, the Profile 1 dimensional factor that applies to all service types. A 10 x 10 x 10 box is 7.2 pounds, which rounds up to 8.0. Now with the actual weight and the dimensional weight, the greater of the 2 applies as the billable weight. 6.0 pounds vs 8.0 pounds in the examples above. 8.0 applies.

Time to find your rate. Choose the service type to ship your package. Transit times are distance travelled and service-type specific. This is your transportation charge. Other charges, like surcharges, apply as add-on charges and value-add service selections. Fuel, for example, is a percentage of the transportation-related charges for a given shipment. Add any additional fees to the rate and behold the landed cost to send your package. So go ahead, Print the label and ship it today.

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