Webinar summary: "Parcel delivery: understanding pricing structures and avoiding pitfalls"

This summary contains key information from our webinar on 27 March 2025, dedicated to small parcel transport and hosted by Benjamin Mazingue-Desailly. With a Master's degree in Finance, Benjamin has been working in the transport sector for over 20 years, focusing on a results-oriented operational approach. Here, he provides concrete insights into understanding your service providers' pricing structures and concepts such as volumetric weight rules, fuel indexation, and surcharges. >> To view the recording of the webinar (duration: 30 minutes), click here.

Transport: a challenge for every business

As the final stage in your sales process, transport represents a pivotal element in operational efficiency, impacting both your engagements with suppliers and customers, and internal business operations. It influences:

• profitability
• customer satisfaction
• internal logistics and coordination.

Today, we shall focus on small consignments weighing under 30 kg. Primarily conveyed by road, though also by air (especially beyond Europe), delivery options include:

• Without a guaranteed delivery timeframe (DPD, GLS, Colissimo)
• With a guaranteed delivery timeframe (UPS, FEDEX, DHL)
• To a collection point (Mondial Relay).

Analysis of Transport Costs

These are predicated upon three core pillars:

1. transport, featuring a tariff structure by destination and weight band, and a rate adjusted for irregular consignment flows contingent on weight and destination
2. fuel indexation, in accordance with the 2006 legislation designed to safeguard carriers against pump price volatility. Its methodology of calculation is stipulated upon contract execution and is mandated for inclusion at the foot of the invoice. It is typically reviewed on a monthly basis for small consignments, though quarterly reviews are also permissible.
3. Various surcharges: applicable for areas presenting access challenges or within residential zones, guaranteed delivery timeframes or weekend consignments, and during peak operational periods (September to January).

Consignment with or without a Guaranteed Delivery Timeframe

Consignment without a guaranteed delivery timeframe (primarily for European consignments):

• Maximum weight per consignment: 30 kg
• No volumetric weight rule (VWR) application
• The volume of the consignment may be subject to limitations

Consignment with a guaranteed delivery timeframe (international logistics specialists):

• Maximum weight per consignment: 70 kg
• Application of volumetric weight rule (VWR)
• Weight and Dimensional Limitations

It is important to note that: supplementary charges may render the cost prohibitive within this classification.

Grasping the Volumetric Weight Rule

This 'theoretical' weight is predicated upon the consignment's volume: it quantifies the spatial displacement within the conveyance vehicle. The carrier will apply the greater value between the volumetric weight and the actual weight of your consignment. Consider two consignments possessing comparable actual weights: should one contain lead, it will be invoiced based on its actual weight. Conversely, if it comprises feathers, the volumetric weight will be the determining factor. Consequently, optimising your packaging is imperative!

The chargeable weight rule for small parcels:

There is no universal rule, but the common guideline dictates that 1 m³ = 200 kg. The volumetric weight of a parcel is calculated using the following formula: Length x Height x Width (in cm) ÷ 5000. Why divide by 5000? This provides a simpler conversion for calculating volumetric weight. Consider, for instance, two parcels of comparable weight but differing dimensions:

• PACKAGE 1:

Actual weight: 3 kg

Dimensions: length = 40 cm, width = 30 cm, height = 25 cm

Volumetric weight: (40 x 30 x 25) ÷ 5,000 = 6 kg

‍👉 Billing will be based on the volumetric weight = 6 kg

• PACKAGE 2:

Actual weight: 3 kg

Dimensions: length = 32 cm, width = 25 cm, height = 15 cm

Volumetric weight: (32 x 25 x 15) ÷ 5,000 = 2.4 kg

• 👉 Billing will be based on the actual weight = 3 kg
• If we add the regulatory fuel indexation and surcharges:

💡 Tips:

• Optimise parcel volume: unutilised space incurs significant cost.
• Establish a comprehensive shipping policy encompassing delivery lead times, insurance, and other pertinent factors.
• Tailored to your business and specific requirements

To conclude

Whether your approach is B2B, B2C, or a hybrid, the advantageous position is that optimisation is achievable across all facets. You can mitigate costs and enhance delivery performance through:

• A comprehensive market understanding
• The appropriate strategic levers
• Customised support

Take action with the experts at ERA Group!