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Contact Information:

ExpressCube

905-507-0007, products@expresscube.com, www.expresscube.com
 
Company Contact: Gordon Cooper – CEO; gordon.cooper@expresscube.com,

Media Contact: Howard Oliver, What If What Next, 416-638-8582, holiver@whatifwhatnext.com

 

White Paper on Understanding Dimensional Weight and DIM Factor

Understanding Dimensional Weight & DIM FACTOR

 

                 The Importance of Volume and Weight of Cargo for Transportation

 

All cargo space involved in transporting goods has physical limits based on the volume of the cargo and the weight.   Once a cargo has reached a limit in either volume or weight – the container (trailer, train, plane or shipping container) is transported.  Weight has traditionally been the measurement that the transportation costs of individual packaged freight have been calculated.

 

The difference in weight and volume costs can be appreciated if one considered the expense of transporting a large volume with little weight (e.g. large boxes of Styrofoam drinking cups).  Transportation companies have recognized these variables and most have allocated a volume per weight standard in their billing to capture cargo of light density. 

 

Dimensional (Volume) Weight

 

The dimensional weight (also known as volume weight) is the minimum weight that a package a given size may have that is handled by a carrier.  A carrier may state that any package of one cubic foot (12”x12”x12”) will have a minimum weight allowance of 10 pounds.  If the cubic foot package actually weighs 8 pounds – it will be invoiced for 10 pounds.  This is a minimum weight allowance – if the cubic foot package weighs 12 pounds – the charges will be based on 12 pounds.

 

? There are no international or domestic standards concerning values of dimensional weight covering all modes of transport.  A significant number of courier companies use the dimensional weight standard set by the International Air Transport Association (IATA) but many regional couriers define their own dimensional weights for ground delivery.

 

In the US as in other countries, the IATA standards have come under increased scrutiny as ‘clearly a price-fixing agreement among horizontal competitors’ 1.  If the US Department of Justice recommendation was followed, the Department of Transport would withdraw the approval and antitrust immunity for all IATA agreements and members would set their own low-density formulas (DIM Factors) in a free market environment.  In this competitive environment, it will be much more critical for shippers to know the DIM FACTOR used by their carrier.

 

 

1Docket OST-2003-14480 submission by Antitrust Division, U.S. Department of Justice concerning a request from IATA to lower the DIM Factor (Resolution 502)

 

 

 

DIM Factor (Dimensional Weight Factor)

 

The DIM Factor is a mathematical factor used to calculate the dimensional weight of an object.  The DIM Factor represents the volume of a package allowed per unit of weight.  Although mathematically related, the DIM Factor is different for measurements in units of inches/pounds and for measurements in centimeters/ kilograms.

 

All major courier companies now apply the DIM Factor to virtually every cuboidal (rectangular/ square) parcel that they handle to determine the dimensional weight.  They then adjust customer invoicing to reflect charges based on the greater weight between actual weight and dimensional weight.

 

Finding a DIM Factor using in/lb

 

Find the DIM factor if each cubic foot (12”x12”x12”) has a minimum weight allowance of 10 pounds:

 

1 cu ft

 

12”x12”x12”

 

1728 in3  

 

172.8 in3/lb

10 lbs

 

10 lbs  

 

10 lbs

 

 

Finding a DIM Factor using cm/kg

 

Find DIM factor if each cubic meter (100cm x 100cm x 100cm) has a minimum weight allowance of 200 kg:

 

1 m3

 

100cm x100cm x100cm

 

1000000 cm3  

 

5000 cm3/kg

200 kg

 

200 kg

 

200 kg

 

 

IATA Dim Factors

 

Currently used by most large North American couriers:

 

            Domestic        =          Dim Factor [in3/lb] = 194

 

International            =          Dim Factor [in3/lb] = 166 ; [cm3/kg] =6000

 

        International (Proposed) =          Dim Factor [in3/lb] = 138 ; [cm3/kg] =5000

 

 

Using DIM Factor (Dimensional Weight Factor)

 

The DIM Factor provides a quick determination of the dimensional weight of any cuboidal package.  The best way to describe this application is by an example of the application and use of the DIM Factor by a courier company:

 

What is the billing rate of a 10”x 12”x 14” package that weighs 8 lbs by a courier that has a minimum dimensional weight of 10 lbs per cubic foot (i.e.: DIM Factor = 172.8 in3/lb) ?

 

Volume

 

Volume

 

10x12x14 in3

 

1680 in3 lb

 

9.7 lb

DIM Factor

 

Volume / lb           

 

172.8 in3/lb

 

172.8 in3

 

 

 

The courier company will invoice based on 9.7 lbs – the dimensional weight.

 

? This is an example.  Some courier companies always round dimensional weight up to the next pound, which would make the billing weight 10lbs.

 

Dim Factor Conversion Between in3/lb and cm3/kg

 

The ExpressCube Countertop will automatically adjust the selected DIM Factor to correspond to the units selected by the user.  The mathematical relationship between DIM Factors can be expressed as follows:

 

            Dim Factor [cm3/kg]   =          Dim Factor [in3/lb] x 36.12728079

 

Dim Factor [in3/lb]       =          Dim Factor [cm3/kg] x  0.027679913

Examples of Dim Factor Effect on Dimensional Weight Charges

 

The following chart illustrates the possible different weight charges based on different Dim Factors.  All dim factors are in use except proposed IATA (138). [Box :20x10x12.5 = 10lbs]

 

Dim Factor

Actual Weight

Dimensional Weight

% Increase from Actual

250

10 lbs

10.0 lbs

0%

194

10 lbs

12.9 lbs

+ 29%

172.8

10 lbs

14.5 lbs

+ 45%

166

10 lbs

15.1 lbs

+ 51%

138

10 lbs

18.1 lbs

+ 81%

 

 

 

How Comparative Shipping Knowledge and ExpressCube Can Save You Money

 

 

As technology has advanced, international and national courier companies have invested millions of dollars on machines that perform dimensional weight measurements on virtually every package2 that they handle.  This has resulted in dramatically increased revenue based on dimensional weight charges.  For many most shippers, this increased revenue manifests itself in the form of adjusted shipping invoices.  This can be extremely frustrating, particularly because these costs can be very difficult to manually calculate prior to shipment.

 

You can accurately predetermine shipping costs by using ExpressCube to dimension and weigh your package2 before shipment.  The DIM Factor used by different courier companies will help you determine how each courier will treat the size of your package2 when it is shipped.  National couriers are currently following IATA standards but look to regional couriers for local deliveries to minimize penalty charges.  Regional couriers can be better or worse that the national courier but substantial differences are there. The author of this report found ranges of Dim Factor 250 to 172.8 [national = 194] with just a cursory Internet search of courier rates.

 

Use the DIM Factor published by your courier company to establish the dimensional weight.  The ExpressCube countertop unit will indicate which weight (actual weight or dimensional weight) you should use to determine shipping cost.  You can preprogram different Dim Factors and then step through them at the press of a button to predetermine the dimensional weight for a given DIM Factor.

 

If your shipping department handles different priorities of shipments such as emergency repair parts, small orders, inventory spares, etc.; all parcels should have a form filled out that clearly identifies when delivery is expected.  This allows the shipper to find significantly reduced cost alternatives for packages with longer delivery allowances.

 

There are rapidly emerging software solutions now that will quickly find the least cost routing of a package given the destination, weight, dimensional weight and delivery requirements.  If you are researching to purchase this type of software, inquire if they can interface directly to an ExpressCube countertop unit.  A shipper only has to place the package on the ExpressCube countertop unit and fill in the delivery information directly into the computer program to determine the most economical shipping route.

 

 

 

2Note: Packages are measured as cuboidal objects.  A cuboidal object is either square or rectangular in shape.  In the event that an object is in countered that is not cubiodal, many couriers calculate the minimum dimensions of a cuboidal box that could contain the object and use this figure for dimensional weight.  The ExpressCube countertop unit exclusively measures cuboidal packages.

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