FedEx Freight pilots new ‘space and pace’ pricing model

by Today's Trucking

FedEx Freight is trying a new approach to pricing LTL shipments based on “space and pace”.

The new dimension-based pricing model is being piloted with select customers. FedEx Freight says it allows the company to provide simple quotes based on the space the shipment occupies and the pace at which it must be delivered.

FedEx Freight truck
(Photo: FedEx)

Customers provide the weight, dimensions, origin zip, and destination zip of their shipments to receive a quote. FedEx Freight uses dimension in motion (DIM) technology to verify the shipment’s weight and dimensions, simplifying the pricing structure.

“With the simplicity of space and pace pricing, we aim to build confidence with our customers by ensuring they receive accurate pricing on the frontend in order to reduce the frequency of price adjustments and disputes on the backend,” said Mike Lyons, vice-president, LTL revenue quality.


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