USPS Changes Dimensional Weight Rates
Effective June 23, more packages will be subject to dimensional (DIM) weight charges than ever before. The new rate change from USPS will have the greatest impact on packages that are traveling short distances.
Prior to the change, packages that were shipped less than 600 miles were not subject to DIM charges. Now, any package – regardless of distance – will be subjected to DIM charges if it measures more than 1 cubic foot.
USPS also reduced the divisor that calculates DIM weight from 194 to 166 for all packages measuring more than 1 cubic foot. That may sound like a good change for shippers, but the lower divisor is actually more costly.
FedEx Announces Partnership With Dollar General
FedEx and Dollar General are partnering to offer pickup and drop-off services at thousands of Dollar General stores. This new service will see an expansion of shipping opportunities for rural communities.
The current goal for FedEx is to add the service to more than 1,500 stores by late summer and later expand the operation to more than 8,000 stores by the end of 2020. Dollar General will prove to be an effective third-party service for rural shippers, as their stores are within 5 miles of 90% of the U.S. population.
In addition to benefiting rural customers, the new service will also be ideal for those who want alternative delivery options to the traditional business and residential delivery, along with those who want to make returns in-person. According to an article by EcommerceBytes, 47% of customers prefer making in-person returns.
Walmart Leads Amazon in Drone Patents
Walmart is continuing its dominance over Amazon in the world of drone patents. Since July 2018, Walmart has filed 97 new drone patents with the World Intellectual Property Organization, while Amazon has filed only 54.
The competition between the companies has heated up in the past few months. In April, Amazon announced that they would be rolling out one-day shipping for prime members. Less than three weeks later, Walmart announced its own next-day shipping plan.
By beating out Amazon in drone patents, Walmart is proving how serious they are about utilizing technology to get ahead in the rapidly evolving shipping industry.