As the shipping industry continues its growth, companies work to find solutions and new ways to make it more efficient . Many carriers are now incorporating new pricing initiatives and shifting from the traditional weight and class-based rates to pricing based on the size of the freight and the space it occupies. This does not mean that they will be getting more revenue on shipments, but that the dimensional pricing will allow them to make the most effective use of the LTL shipping space. Some shippers may argue LTL DIM pricing is only beneficial to all shippers who frequently ship products, however, LTL dimensional pricing is beneficial to all the shippers as it implies the need to be more efficient in the packaging process. Smaller packages should have lower shipping costs than larger packages in LTL shipping and DIM pricing definitely enables this deal.

ABF Freight has just established a Cubic Minimum Charge which requires dimensions to be entered when quoting. Spaced-based pricing is a simplified approach to LTL shipping, which allows access to easier and more accurate quotes. Similar to the Absolute Minimum charge that applies to weight-based pricing, the Cubic Minimum Charge is a minimum linehaul rate for shipments on the space they occupy. If CMC applies to a shipment, the invoice will include a line item adjustment along with the cube measurement and mileage. They are making it clearer to people that when they provide the information, dimensions are also an important part of it.

XPO Logistics, YRC Freight, UPS Freight among many others are using some form of dim pricing on at least some of their shipments.

When shippers ask for tips on how they could reduce their shipping and dimensional pricing costs, we suggest:
1.    Use packaging that minimizes the size of the overall box or crate you use to ship your products. Avoid filling a large box with packing peanuts to hold something half its size.
2.    Load pallets evenly on the sides and top. On the sides to reduce the pallet footprint, and on the top, because if it’s level, you can stack pallets two, three or four high, essentially forming a “column” of pallets.
3.    Consider training programs to help your warehousing, packing and loading dock employees efficiently pack and load pallets. Standardize your processes, which will help keep density-based prices down long-term.

Did you know Todd makes his own wine?

As he has done with several other passions in his life, he picked up where his father left off with the wine-making.  Paul started making wine a few years before his passing. Todd genuinely had an interest at making some of his own and started a couple of years ago.  Although he has made a variety of wines, he is currently working on a white wine which should be ready in a couple of weeks.  Each batch will create anywhere from 28-33 bottles of wine. Once ready, he usually lets them sit in the bottles for 6-12 months before enjoying the “fruits” of his labor. 😉

Everyone asks him: “Do you stomp the grapes yourself?”  The answer is no. He uses grape concentrates and wine-making kits. It brings him joy to participate in a hobby his dad enjoyed.

We like to give these away as gifts to friends, family and some clients. They taste grrrrrape!

Thank you to those who participated in our last contest. We appreciate your support and business and love interacting with you. Congratulations to Christian for winning the Amazon Echo.  We hope you enjoy it!

Did you read the “About Us” section? We are going to give away 3 of Todd’s wines next month just in time for the holidays. We will give away a white, red, and blush wine.

If you want to enter, be sure to watch for our next Newsletter in early December.