UPS Dimensional Weight Change: What Shippers Need to Know

As the logistics landscape continues to evolve, UPS has announced a significant change to its dimensional weight calculations, effective August 18, 2025, aligning with a similar move by rival FedEx. This adjustment, which involves rounding up any fractional measurements for package dimensions to the next whole inch, could introduce new cost pressures for shippers.

At Gain Consulting, we’re here to break down what this change means for your business and how you can adapt to stay competitive.

Understanding the Dimensional Weight Adjustment

Starting August 18, 2025, UPS will round up all package dimensions—length, width, and height—to the nearest whole inch, even for fractions as small as 0.1 inches. For example, a package measuring 11.1 inches in length will be treated as 12 inches for billing purposes. This marks a shift from UPS’s current practice of rounding down dimensions less than half an inch, as outlined in its rate and service guide.

FedEx announced a similar change last month, also effective August 18, aligning its dimensional weight calculations with its weight measurement rounding logic. This synchronized move by the two parcel giants signals a broader industry trend toward stricter pricing models, likely driven by rising operational costs and the need to maximize revenue in a competitive market.

Why This Matters for Shippers

Dimensional weight pricing, which calculates shipping costs based on a package’s volume rather than its actual weight, is a critical factor for parcel shippers. The new rounding policy means that even slight increases in calculated package size could lead to higher shipping charges, even for packages that haven’t changed in size. According to Imtiaz Kermali, VP of Sales and Marketing at eShipper, this change could have a significant financial impact.

For example, a customer shipping 2,500 packages monthly could face an additional $32,678 annually due to the rounding alone—not from increased shipping volume or inflation.

This change comes on the heels of other cost pressures in 2025, including new fees and adjusted surcharges introduced by both UPS and FedEx. For businesses reliant on ground shipping, these cumulative increases could strain budgets and erode margins if not addressed strategically.

Strategic Implications for Your Business

The dimensional weight adjustment underscores the need for shippers to optimize their packaging and logistics strategies. At Gain Consulting, we recommend the following steps to mitigate the impact of these changes:

• Optimize Packaging: Review your packaging processes to minimize dimensional weight. Using smaller, custom-fit boxes or eliminating excess padding can reduce package dimensions, keeping costs in check.

• Leverage Technology: Invest in packaging optimization software to calculate the most cost-effective box sizes and configurations. Advanced analytics can help identify opportunities to consolidate shipments or adjust packaging materials.

• Negotiate Carrier Contracts: Work with your carrier representatives to negotiate rates or explore volume-based discounts to offset the impact of dimensional weight increases.

• Diversify Shipping Options: Consider alternative carriers or hybrid shipping solutions, such as regional carriers or consolidators, to maintain cost efficiency.

• Audit Invoices: Regularly audit carrier invoices to ensure accurate dimensional weight calculations and catch any overcharges resulting from the new rounding policy.

How Gain Consulting Can Help

At Gain Consulting, we understand the challenges of navigating rising shipping costs in a dynamic logistics environment. Our team of experts specializes in helping businesses optimize their supply chain operations, from packaging design to carrier negotiations. We can work with you to analyze your current shipping profile, identify cost-saving opportunities, and implement tailored strategies to minimize the impact of UPS and FedEx’s dimensional weight changes.

Looking Ahead

The synchronized dimensional weight adjustments by UPS and FedEx signal a new era of cost management for parcel shippers. By proactively addressing these changes, businesses can protect their bottom line and maintain a competitive edge.

Contact Gain Consulting today to learn how we can help you adapt to this evolving landscape and drive efficiency in your logistics operations.

Source: Max Garland, Supply Chain Dive, August 6, 2025