New Dimensional-Weight Rules from UPS and FedEx Take Effect August 18

FedEx Changes Package Measurement Rules

Starting August 18, 2025, FedEx will begin rounding every fractional measurement of a package’s length, width, and height up to the nearest whole inch or centimeter. Even dimensions previously rounded down will now be rounded up. This change increases calculated dimensional (DIM) weight, which is often used to determine shipping charges.

Supply Chain Dive reports that the update could have a significant cost impact for high-volume shippers, as more packages will be billed at higher weights.

UPS Adopts the Same Policy

UPS will implement the same rounding rule on the same date, matching FedEx’s approach. This synchronization means shippers won’t be able to avoid the change by switching between the two carriers by switching or moving volume.

Why This Matters for 3PLs and E-Commerce

Rounding each dimension up can significantly inflate a package’s DIM weight, especially for parcels just over a whole-inch mark. This can increase costs, push packages into surcharge categories like Additional Handling, and affect margins for both e-commerce merchants and 3PLs. With both major carriers aligning, diversifying carriers won’t eliminate the impact.

How to Prepare

• Audit packaging to see how rounding will affect DIM weight.
• Consider smaller or custom-fit boxes to reduce dimensional volume.
• Update warehouse management systems and shipping calculators to reflect the change.
• Monitor for new surcharges that may result from higher DIM weights.
• Work with your 3PL or fulfillment provider to adjust packaging strategies before the change takes effect.

Consider Alternatives

Another strategy worth considering is shifting a portion of shipments to regional parcel carriers. Providers such as LaserShip/OnTrac, Lone Star Overnight (LSO), and Veho often have competitive pricing structures that are less impacted by dimensional-weight changes, particularly on shorter delivery routes. Regional carriers can also offer faster transit times within their service areas, fewer surcharges, and more flexible pickup schedules. For 3PLs and e-commerce sellers with concentrated customer bases in certain regions, blending national and regional carriers can help offset the cost increases from UPS and FedEx’s new policies.