Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in dimensional pricing



b2ap3_thumbnail_Scan_20170318-185343_1.jpgThe following is my annual report on the state of the LTL Freight Industry in the United States and Canada.

Revenues Stagnated Again in 2017

Here are links to the top 100 carriers in Canada ( and the top 25 LTL carriers in the United States (

Hits: 2674
Continue reading 0 Comments

During the Great Recession, the LTL freight industry experienced a “near death” experience as declining freight volumes, excess capacity and falling rates conspired to dramatically reduce revenues and profits. The LTL market shrank from more than $33 billion U.S. at the peak in 2006 to $25.2 billion at the recession's trough in 2009. As we approach the mid-point of 2015, the fortunes of this industry look much brighter. Here’s why.

The industry has consolidated

Looking back over the past 25 years, only 4 of the top 50 carriers are still in operation. Over the past 10 years, there has certainly been a changing of the guard at the top. As noted in a recent Stifel transportation report, “Old Dominion has replaced FedEx Freight/Con-way Freight as the most profitable carrier in the industry. USF was bought by Yellow Roadway to become YRC Worldwide before it nearly went the way of Consolidated Freightways, Overnite became UPS Freight, Central Freight Lines went public then private, Vitran was sold in pieces, Saia sold Jevic (which then went bust), and Roadrunner acquired Dawes and Bullet to become the only national asset-light general commodity LTL carrier. The industry is more concentrated than ever . . . “

The report goes on to report that “the top-5 (U.S.) carriers have roughly 55% of the market. And those top-5 - FedEx Freight, YRC Worldwide, Con-way Freight, UPS Freight, and Old Dominion Freight Line - are all either historical disciplined pricers or have been burned in the past by their undisciplined ways or have no choice but to push price to improve margins.” The Canadian market is quite similar with TransForce, Day & Ross and Manitoulin dominating the LTL sector. Unlike the truckload sector, consolidation means more leverage and pricing power for the top LTL players.

Today’s LTL Carriers are leaner and meaner

Hits: 4092
Continue reading 0 Comments

Freight costs have historically been calculated on the basis of gross weight in kilograms or pounds. By charging only by weight, lightweight, low density packages become unprofitable for freight carriers due to the amount of space they take up in a trailer or container in proportion to their actual weight.

Dimensional weight is also known as DIM weight, volumetric weight, cubed weight or density-based pricing. The concept of Dimensional or Cube Weight is gaining popularity in the LTL freight industry as a uniform means of establishing a minimum charge for the cubic space occupied by a carton or pallet. Three of the largest LTL freight carriers, UPS Freight, FedEx Freight and YRC introduced dimensional LTL freight pricing this year. Currently FedEx Ground only applies dimensional pricing to packages measuring three cubic feet or greater.  Effective January 1, FedEx and UPS will apply dimensional pricing to all packages.  

The implication of this change in pricing methodology has caught the attention of the media (see article in Wall Street Journal). Experts say the impact could result in increased shipping costs of 5 to as much as 25% - - - if shippers don't take action. This blog will provide shippers with a guide to prepare for the introduction of this LTL pricing methodology.

A Definition of Dimensional or Cube-Based Pricing

Dimensional weight is a calculation of a theoretical weight of a shipment. This theoretical weight is the weight of the package at a minimum density chosen by the freight carrier. If the shipment is below this minimum density, then the actual weight is irrelevant as the freight carrier will charge for the volume of the package as if it were of the chosen density (what the package would weigh at the minimum density). Furthermore, the volume used to calculate the Dimensional Weight may not be absolutely representative of the true volume of the shipment. The freight carrier will measure the longest dimension in each of the three axes (X, Y and Z) and use these measurements to determine the shipment volume. If the carton or pallet is a right-angled box, then this will be equal to the true volume of the package. However, if the package is of any other shape, then the calculation of volume will be more than the true volume of the package.

Hits: 5988
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

Schneider Logistics Transloading economic forecasts for 2012 pipelines selling trucking companies supply chain management Infrastructure future of freight industry Canada's global strategy Trump transportation news Business skills Social Media Comey 2014 economic forecast Politics home delibery US Economy shipper-carrier contracts mentoring economy tanker cars customer engagement freight costs trucking company acquisitions truck driver Freight contracts cheap oil CSA robotics Freight Management Werner Surety bond home delivery coaching 2014 freight forecast FMS Business Transformation Strategy Transcom Fleet Leasing Doug Davis Reshoring Warehousing Freight Capacity Sales employee termination Omni Channel Whole Foods 360ideaspace LTL Outsourcing Sales freight rate increases freight broker bulk shipping CN Rail Wal-Mart ShipMax Rotman School of Business business start-up consumer centric LCV's Consulting hiring process Carriers Doug Nix Masters in Logistics Transportation Buying Trends Survey shipping wine Failure Success failure entrepreneur US Manufacturing intermodal US Election small business network optimization broker security marketing Crude Oil by Rail APL Finance and Transportation University of Tennessee David Tuttle Canadian freight market Bobby Harris Dedicated Trucking Rail Harper Davos speech Transport Capital Partners (TCP) 2015 Economic Forecast Climate Change Life Lessons Muhammad Ali Crisis management freight bid Donald Trump Colilers International Business Strategy online shopping Transportation service Transplace President Obama driverless Swift EBOR Entrepreneur Yield Improvement Tracy Matura Facebook Adrian Gonzalez Blogging Driver Shortage Otto freight forwarders dimensional pricing Blockchain Celadon RFP Dedicated Contract Carriage Toronto New York Times Sales Training Shipper Canada U.S. trade Spanx Training 2014 freight volumes FCA Regina Freight Carriers Association of Canada Training New Hires Dan Goodwill capacity shortages USA Truck Stephen Harper Trade Vision shipper-carrier roundtable capacity shortage risk management Success Retail transportation Social Media in Transportation freight agreements BNSF Freight Rates Twitter Global experience buying trucking companies US Housing Market JB Hunt transportation audit 3PLTL CN Microsoft fuel surcharge Fire Phone Job satisfaction Load broker peak season MPG Global Transportation Hub carrier conference routing guide Management Sales Management driver Canada broker bonds Keystone Pipeline Emergent Strategy freight transportation conference Canada-U.S. trade agreement YRC the future of transportation Deferred Packaging driver shortages TMP Worldwide ELD trade Inbound Transportation NMFC Right Shoring Canadian economy LinkedIn autonomous vehicles Trucking Packaging Truckload Map-21 automation freight audit Cleveland Cavaliers NCC Freight TMS FuelQuest Search engine optimization natural disasters Canadian Transportation & Logistics ProMiles dynamic pricing Associates 2013 Economic Forecast Load Boards KCS Rate per Mile freight transportation Education Scott Monty freight RFP Driving for Profit NS Railway Association of Canada $75000 bond CSX Amazon 3PL freight cost savings freight payment freight audit Freight Shuttle System Accessorial Charges technology Loblaw Transportation Career Advice Ferromex Distribution Broker Software Advice IANA Leadership energy efficiency shipping Derek Singleton BlueGrace Logistics solutions provider NAFTA 2012 Transportation Business Strategies. Jugaad FCPC e-commerce Horizontal Supply Chain Collaboration Retail US Auto Sales CP Rail CRM Grocery Freight Matching CITA Shipper Pulse Survey FMCSA truck drivers UP last mile delivery TransForce shipper-carrier collaboration transportation newspaper MBA Freight Recession Canadian truckers financial management drones CSA scores derailments professional drivers freight payment Hudsons Bay Company freight transportation in 2011 rail safety Conway

Blog Archives