Starting Jan. 1, FedEx and UPS have expanded the number of packages to which dimensional weight pricing applies, to include most domestic ground shipments — meaning shipping and warehouse costs for New Jersey businesses could increase an estimated 30 percent.Dimensional weight pricing — once mostly reserved for air freight shipments — takes into account package density, or the amount of space a package takes up, in relation to its actual weight.
Meaning a smaller package that weighs more could actually end up being cheaper to ship than a larger package that weighs less.
Tom Gorcica, who spent 12 years working for FedEx as a worldwide accounts manager, believes the change is due to “FedEx and UPS looking to handle their volumes more profitably by having less volume in the system, with higher margins.”
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Now a first-time business owner over the age of 50, Gorcica opened up a Unishippers franchise in Bergen County last fall after accepting a buyout from FedEx.
“Unishippers is in a unique position to help small and mid-sized customers,” Gorcica said.
“This is a great opportunity for us to work closely with business owners in New Jersey by helping them find creative ways to control their shipping costs.”
As the first and one of the largest small-package and -freight, third-party logistics companies in the nation, Unishippers can help companies adjust to the dimensional weight pricing shift at FedEx and UPS.
“Unishippers doesn’t own any resources or trucks, but we can negotiate rates with carriers such as UPS and YRC at a lower rate than a small business would be able to negotiate on their own,” Gorcica said.
“We also offer a lot of great resources. For example, how can a customer package their product more efficiently to reduce costs? We can consult with them regarding reused packaging, disassembling products, different types of packing material and more.”
With plans to expand his business to more New Jersey territories over the next few years, Gorcica says business is right how he expected it to be.
“In today’s market, where everything is tight and competitive, customers want to save money and operate efficiently,” he said.
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