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UPS Offers Dimensional Weight Changes

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UPS® (NYSE: UPS) today announced
that, beginning December 29, 2014, in the United States, dimensional weight
will be utilized to calculate the billable weight of a shipment on all UPS^®
Ground services and UPS^® Standard to Canada packages. UPS already applies
this method for UPS air services (domestic and international), UPS Standard™
to Mexico ground services and for UPS^® Ground packages and UPS^® Standard to
Canada packages measuring 3 cubic feet in size or larger.

"UPS has been researching the potential expansion of dimensional-weight
pricing for a number of years because it enables us to more appropriately
align rates with costs which are influenced by both the size and weight of
packages," said Alan Gershenhorn, UPS executive vice president and chief
commercial officer.

Recent e-commerce shipping trends have resulted in a decrease of package
density. For example, the package weight compared to the physical exterior
dimension is declining. This trend causes cargo space to be less efficiently
utilized, resulting in an increased cost per package.

The company believes that as a result of the dimensional weight pricing
method, more shippers will seek to optimize their packaging practices. These
efforts will reduce excess packaging materials and overall package sizes,
leading to related reductions in fuel use, vehicle emissions and
transportation costs.

As an industry leader in sustainable transportation practices, UPS provides
solutions to assist customers with more efficient packaging options. The UPS
Package Design and Test Lab helps customers optimize the size of packaging to
minimize dimensional weight, ensuring packages are protected while in transit.

In addition, UPS Freight recently began offering an optional, simplified
density-based pricing program to a segment of its customer base.
Traditionally, the less-than-truckload (LTL) industry has utilized the
National Motor Freight Classification (NMFC) system, a commodity-based
standard that can be complex for both customers and carriers. The UPS Freight
Density-Based Rating LTL pricing solution is based solely on the weight and
cubic volume of a shipment rather than the NMFC system. This program benefits
customers that construct shipments in the most efficient manner and reduce the
resources required to transport their goods.

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