Dimensional charges have been a trend since around 2014. UPS, Fedex, and most carriers now charge based on a combination of weights and dimensions. A typical scenario is multiplying L x W x H values and dividing by 166. If that value is more than the weight, then a dimensional weight charge is applied. The dimensional factor (in this case 166) can vary by contract with a carrier.
Warehouses and DCs now need have precise data for both SKU level and outbound shipments more than ever before. Dimensional data is important for forecasting delivery costs and selecting the correct carton for package shipments. Dimensional data is also utilized to help users determine how much space a load requires in the trailer for pallet shipment as well as in the DC; detailed dimensional data makes slotting and maximizing the store’s storage capacity simpler by optimizing space.