DALLAS (AP) -- UPS says it will consider box size when setting prices for ground shipment of parcels within the U.S. and Canada.
The move announced Tuesday follows a similar change last month by rival FedEx, and it could lead to price increases for shippers, analysts say. Like UPS, FedEx was already considering size in rates for priority shipments.
United Parcel Service believes that the change will push customers to put lightweight items in smaller boxes that take up less space on its familiar brown trucks, reducing the company's costs.
The change takes effect Dec. 29, after the big holiday-season shipping period. Atlanta-based UPS already factors box size in rates for air shipments.
Packages have become lighter in relation to size over the past few years, which UPS says leads to higher costs and less efficient use of space. Edward Jones analyst Logan Purk said shippers will pack books and DVDs more tightly but won't scrunch fragile items or women's shoes.