UPS & FedEx’s DIM Round-up Set to Reshape Parcel Pricing
On August 18, 2025, both FedEx and UPS will implement a significant change to how they calculate dimensional (DIM) weight. Instead of rounding fractional measurements—length, width, and height—based on whether they fall above or below the half-inch mark, the carriers will now round any fraction up to the next whole inch. For example, a package measuring 11.1 inches will be billed as 12 inches. This update aligns both carriers’ DIM weight practices, eliminating the previous differences in rounding methods.
Rounding Up: Every Time, Every Inch
Under the current system, some fractional measurements result in lower billed weights, depending on the carrier’s rounding rules. With the new approach, those cost-saving scenarios will disappear. Because dimensional weight is calculated by multiplying length, width, and height before dividing by a carrier’s DIM factor, even small increases in each dimension can raise the total billing weight. This means many packages, especially lightweight or large-box shipments, will be billed at higher weights, potentially triggering higher base rates and surcharges.
The Math Behind Higher Bills
For shippers, this change can translate into meaningful cost increases. Modeling examples suggest that a shipper sending 2,500 packages per month could see annual expenses rise by more than $32,000 solely from the new rounding rules. Because each rounded measurement compounds in the calculation, the billed weight can increase by multiple pounds per shipment. That can also push more parcels into higher-cost tiers, where base rates and surcharges climb quickly.
Surcharges That Could Sneak Up on You
The increase in billed weight isn’t the only potential cost impact. By raising DIM weights, the change could push more packages into surcharge categories like additional handling or oversized package fees. These thresholds are often tied to billed weight as well as size, meaning that even shipments previously safe from such charges could now qualify. For high-volume operations, these secondary cost increases can add up quickly.
Steps to Soften the Impact
With less than a week until the change takes effect, shippers should review packaging dimensions for frequently shipped products and model costs using the new rounding rules. In some cases, reducing a single dimension by even a fraction of an inch could avoid a full-inch round-up. Reviewing contracts, exploring packaging redesigns, and considering alternate carrier strategies can help offset the increases. Freight audit and analytics tools can provide visibility into where these costs are hitting hardest, enabling data-driven decisions to protect margins.
Hear from the Experts
Dimensional-weight changes are just one of many pricing shifts shaping the parcel market this year. To gain the insights you need to adapt quickly, join our upcoming Essential Insights for Shippers webinar. We’ll break down the latest carrier updates, global trade shifts, and cost-saving strategies that can help you navigate peak season and beyond with confidence.
