What is billable weight?
Billable weight is the weight a carrier charges for: the greater of a package's actual weight and its dimensional weight, rounded up to the next whole pound.
12×9×4 in, 1.2 lb actual → 432 ÷ 139 = 3.1 → billed at 4 lb
LEARN
Parcel rate glossary
The terms on a carrier invoice, defined the way the lab prices them. Articles on parcel pricing publish here twice a week.
What is a DIM divisor?
The DIM divisor converts cubic inches to dimensional pounds. Published rates use 139; negotiated accounts may get 166 or 194, which lowers billable weight on bulky, light boxes. Some programs apply DIM only above one cubic foot (1,728 cu in).
432 cu in ÷ 139 = 3.1 lb · ÷ 166 = 2.6 lb · ÷ 194 = 2.2 lb
What is a shipping zone?
A zone is a distance band between origin and destination ZIP. Ground services use zones 2 (local) through 8 (coast to coast); each step up raises the base rate, more so at heavier weights.
Dallas → Houston zone 3 · Dallas → Columbus zone 5 · Dallas → Seattle zone 7
What is a residential surcharge?
A per-package fee for delivery to a home rather than a business. On published rates it runs several dollars per package before fuel; negotiated and consolidator programs reduce or remove it, which is often the single largest saving for direct-to-consumer brands.
What is a fuel surcharge?
A percentage added to the base rate and most accessorials, indexed to diesel prices and updated weekly by the national carriers. Because it compounds on surcharges, a lower residential fee also lowers fuel.
(base + resi + DAS) × (1 + fuel%)
What is a delivery area surcharge (DAS)?
A fee for delivery to ZIP codes the carrier deems rural or extended-area. It is read from the destination ZIP, so shippers with rural customer bases pay it on a large share of parcels. Postal consolidators typically have no DAS.
What is a general rate increase (GRI)?
The annual list-rate increase national carriers announce each fall and apply in late December or January, recently averaging around 5.9%. Surcharge changes announced alongside it often raise real costs more than the headline figure.
What is a minimum charge?
The lowest amount a carrier will bill for any package under an account, regardless of discount. Deep discounts on light packages are often capped by the minimum, which is why discount percentage alone misleads.
What is a postal consolidator?
A company that collects parcels from many shippers, inducts them deep into the USPS network and resells Ground Advantage or similar services at commercial rates, usually with no residential, fuel or delivery-area surcharges.
THE RE-RATE
What gets re-rated on every package?
Six variables move a parcel invoice. Each one is read from your data and priced on each program's own terms.
var 1ZoneOrigin to destination ZIP on the standard ground bands (2–8). Multi-origin shippers are rated from each pickup location.
var 2Billable weightThe greater of actual and dimensional weight, at each card's divisor (139, 166, 194) and DIM threshold. Light, bulky boxes move the most.
var 3Residential surchargeApplied from your residential flag, or from an assumed residential share for direct-to-consumer volume.
var 4Fuel surchargeEach card's own fuel percentage on base plus surcharges, not a blended guess.
var 5Delivery area surchargeRural and extended-area ZIPs read from the destination and charged at the card's DAS.
var 6Coverage & minimumsRegional carriers count only where they deliver. Cards above your volume stay visible, flagged, so you see what growth unlocks.
price = ( base[ zone, billable lb ] + residential + delivery_area ) × ( 1 + fuel )
billable lb = ceil( max( actual lb, L × W × H ÷ DIM divisor ) )
ELIGIBILITY
Who sees which programs?
Brands and 3PLs are shown different programs on purpose. Three rules decide what appears in your report.
For brands
- Benchmark what your 3PL or carrier charges you against pooled network rates.
- See which programs are open to brands directly and which need a 3PL in the middle.
- Pick the programs that fit your lanes and weights; the Lab confirms the pricing, secures the rate and runs the introduction.
For 3PLs
- Find out whether your parcel spend is competitive before a client asks.
- Access 3PL-only collectives and consolidator programs built to be resold to your clients.
- Keep your existing carrier contracts: anything that conflicts is excluded before you see it.
Why some programs won't appear for you
- Direct carrier contract. If you hold a UPS contract in your own name, a network UPS account can't be layered on top. Shipping UPS through a reseller or your 3PL's account doesn't block it. We ask up front so you only see what you can sign.
- Brand-only or 3PL-only programs. Some reseller accounts serve brands directly and won't be resold through a 3PL; some collectives are 3PL-only.
- What you ship and where. Hazmat, alcohol, perishables and oversize freight are excluded by some programs; AK/HI/PR and PO-box delivery by others. Parcels a program can't take stay at your current cost in the report.
- Volume minimums. Programs with minimums above your monthly volume stay visible but flagged.
How a rate is secured
Every program on the bench is accessed through Parcel Rate Lab; providers list their live rates on that basis. You request a program, we confirm the pricing with the provider in writing against your sample, then disclose who they are and run the introduction and onboarding. Programs are shown by code until that point. No obligation at any step.
See these terms priced on your own parcels.
The benchmark applies every definition above to each package in your sample.