These slides are from a webinar presentation by GSO (Golden State Overnight) about the changes in the Dimensional Weight Rules implemented by the National Carriers. GSO is a Regional Carrier providing next day Ground and Overnight services throughout the states of California, Arizona, Nevada, and New Mexico. We have had numerous customers and prospective clients ask us about the new DIM weight rules. GSO has not changed its policies. Dimensional weight only applies if a package reaches a cubic size of 5,184 inches. Once a package reaches the threshold of 5,184 cubic inches, you'll need to divide that number by the U.S. dimensional factor of 166 to determine dimensional weight. You would then compare the DIM weight to the Actual weight and take the greater of the two numbers to determine billable weight. With the National Carriers, every package is now subject to Dimensional weight.

1. Why Shippers are Down and Out
Over the New Rules
2014
Actual Weight: 3 LB
DIM Weight: n/a
Billable Weight: 3 LB
Cost: $8.88
2015
Actual Weight: 3 LB
DIM Weight: 2744/166
Billable Weight: 17 LB
Cost: $11.32
14”x14”x14”
Cubic Size:
2744”
*Based on Zone 4
Ground Rates
That’s a 28%
increase in price!
*In 2014, the dimensional size of the package needed to exceed 5,184 cubic inches before it was subject to DIM weight pricing.
Not so anymore, if you are a customer of the national carriers.

2. Weigh In as a Light Weight
Counter the new Dimensional Weight Rules
Webinar

3. Company Overview
• Privately held California
Corporation based in Pleasanton,
CA
• Began service in May 1995
• Small Parcel and LTL freight
delivery throughout the southwest
• All deliveries are made by GSO
employees (No Independent
Contractors)

4. “A whopping 55-65 percent of all ground packages will be impacted by these
price increases and this is one of the largest rate increases in the history of
the parcel industry.” ¹
What’s the Impact?
1. retailonlineintegration.com
2. parcelindustry.com; article by LMJ consulting
“Now that many shippers have received their first few 2015 invoices which
reflect the effects of these changes, shippers accustomed to the traditional
6% to 9% effective increase are seeing increases in the 10% to 30% range,
a level which is causing considerable consternation as the reality of the
gathering storm clouds is made real.” ²

5. Dimensional (DIM) Weight
What DIM Weight Means
• DIM weight pricing is a common industry practice that
sets shipping price based on package volume or the
amount it occupies in relation to its weight
How DIM Weight is Applied
• DIM weight is applied by measuring the L x W x H of a
package and dividing by a DIM factor, where the
resulting number is used to determine billable weight
Why DIM Weight is Used
Small items being packed in larger boxes and taking up
too much space on delivery trucks

6. The New DIM Weight Rules Implemented
by National Carriers
• The national carriers implemented major
changes for ground products
2015
Changes
• Beginning January 1, 2015, DIM weight
pricing now applies to all US ground
shipments with no dimensional exception
Bye Bye
Threshold
• Historically, dimensional weight only
applied to packages measuring three
cubic feet (5,184 cubic inches) or greater.
The Good
Old Days
GREAT NEWS: GSO DID NOT CHANGE ITS DIM WEIGHT POLICY. PACKAGES THAT MEASURE LESS THAN 5,184
CUBIC INCHES, WILL NOT BE SUBJECT TO DIM WEIGHT.

7. Calculating DIM Weight 2015
1. First, determine the cubic size of your package by multiplying L x W x H
2. Second, divide the cubic size by the standard U.S. DIM weight factor of 166
3. Round the number up to the nearest pound and this is your DIM weight
4. Compare the DIM weight to the actual weight of the package
5. The greater of the two weights is used to determine the shipping cost of the package
Dimensional Weight = L x W x H
166
Length = Length in inches
Width = Width in inches
Height = Height in inches
*In 2014, the size of the package needed to exceed 5,184 cubic inches or 32 pounds before it was subject to DIM weight pricing.

8. It Adds Up to More Costs
Dimensions:
(L)12x (W)14x(H)10”
Actual Weight:
3LB
DIM Weight:
12x14x10”=1680”
1680”/166 = 11LB
18.3% Increase or a Monthly Increase of $2430 per
month for 50 Packages per month
Dimensions:
L(16) x W(14) x H(8)
Actual Weight:
2LB
DIM Weight:
16x14x8” = 1792”
1792”/166 = 11LB
25% price increase or a monthly increase of
$3120 for 50 Packages per month
*Based on Zone 4 Ground Rates

9. How Much More Are You Paying?
14”x14”x14”
Cubic Size: 2744”
*Based on Zone 4 Ground Rates
If you ship 10
packages per day
or 50 per week
GSO National Carriers
Billed Weight 3LB 17LB
Cost per pair of
gloves
$8.88 $11.32 (2744”/166 = 17LB)
Cost per day $88.80 $113.20
Cost per week $444.00 $566.00
Cost per month $1918.08 $2445.12
Cost per year $23,016.96 $29,341.44
Annual Shipping spend increases by $6324.48

10. How One Company Came Out
Swinging
Saved by the (GSO) Bell

11. Real-World Customer Example
Customer
Distribution company of
consumer products with
a Southern California
Warehouse that ships
over 200 packages per
day – 60% of the
shipments on the West
Coast
2015 Challenges
Typical shipping boxes
now subject to DIM
weight
14 pound boxes now
being billed at 29
pounds
Shipping costs
increased by 24%
Solutions
Switched to a Regional
Carrier
Continued to use
National Carriers for the
rest of the nation
Redesign of shipping
boxes
Update of their ordering
process

12. How They Countered the New Rules
Results
Reduced costs on 60% of their shipments
Eliminated or reduced accessorial fees
Later pick up times
Overnight delivery service now available for their shipments

13. Weigh In as a Light Weight with GSO’s
Billable Weight Calculator
• Calculate the cubic size of the
package by multiplying LxWxH
• If the cubic size is < 5,184”
use the actual weight of the
package.
• If the cubic size is > 5,184”,
calculate DIM weight by
dividing the cubic size by 166.
• Compare the DIM weight to
the actual weight. If the
dimensional weight is greater,
DIM weight pricing applies.
Check out the Billable Weight Calculator on our website:
www.gso.com/shipping/ratesandfees/billableweight
No changes to the GSO DIM Weight Policy,
resulting in savings for our customers.

14. Grow Your Business with GSO Ground.
Extend Your Next Day Delivery Area
Save Your Company Money with GSO Priority.
Later Pickups. Faster Delivery. Greater Savings.
Simplify your LTL Shipping with GSO Freight.
Per-Pallet Rates for Overnight Delivery Across
More Lanes in CA, AZ, NV, and NM
GSO Services
GSO Ground
GSO Priority
GSO Freight

15. • Reduced Transit Times
• Later Pickup Times
• Robust Customer Service Team
• Cost Savings
• Innovative Technology
Why GSO?

16. Contact GSO
Website: www.gso.com
Phone: 800-322-5555 Ext. 4
Email: sales@gso.com
LinkedIn: https://www.linkedin.com/company/golden-state-overnight
www.gso.com/shipping/RatesAndFees/billableweight
Check Out the GSO Billable Weight Comparison Calculator Today.