As FedEx introduce volumetric shipping costs on all non-UK imports and exports, companies like ASOS see a rise in European orders creating excess cost with their increased revenue.
During the last quarter of 2016 ASOS saw their European retail sales increase by a massive 49%. With sales worldwide expected to continue increasing at a steady pace other ecommerce companies like ASOS and boohoo.com will begin to feel the sting of the European, American and Australian dimensional weight charges (DIM Weight).
Popular freight company FedEx have recalculated their surcharges to include the use of volumetric or dimensional weight.
According to their surcharge list the use of volumetric charges will apply “to EMEA export and import shipments” meaning shipments to and from Europe, the Middle East and Asia will have these surcharges applied.
These charges became applicable on the 2nd of January 2017, but show the start of an increase in dimensional weight charges. How do they calculate dimensional weight? FedEx use a simple calculation to determine the volumetric weight of their deliveries:
Dimensional Weight in kg per package = Length x Height x Width (in cm) / 5000.
And “Any fraction of a kilogram takes the next higher weight.” This could have a dramatic effect on the parcel size and makes way for a new smart packaging and the reduction of excess packaging materials and void fill.
So how do growing ecommerce companies combat the increased freight charges? There are many up and coming packaging innovations that are looking to create products and machinery that reduce volumetric weight and packaging waste all in one.
One of those innovative new technologies comes from BoxSizer®. The Boxsizer is an impressive innovation for eCommerce and Dispatch companies as it cuts, creases, folds and closes random footprint boxes to the appropriate size to suit the product inside.
“The Boxsizer doesn’t only cut down the volumetric weight of a box. It’s the only stand-alone machine that cuts costs in all areas including materials, labour and transport.” says David Hayward, managing director, Linkx Packaging Systems.