Parcel Size Matters When Considering Shipping Logistics Companies

By Herm Curk, June 9, 2025

When selecting a shipping carrier, one of the most important—but often overlooked—factors is parcel size. Not all carriers are equipped to handle every type of shipment equally well. Understanding how the size of the parcel impacts pricing, service levels and delivery speed can help businesses make more informed, cost-effective decisions.

Parcel Size Affects Shipping Costs and Service Levels

Shipping carriers use a combination of weight, dimensions and delivery zones to determine pricing. For packages, dimensional weight (also known as DIM weight or volumetric weight) can significantly impact cost—even if the shipment is lightweight. Carriers calculate this using a formula based on the package length, width and height and then compare it to the actual weight, charging based on whichever is greater.

This makes it especially important for businesses shipping smaller items to understand how each carrier handles dimensional weight. Some carriers may apply it more aggressively or add surcharges that disproportionately impact smaller shipments.

Trends Among National Carriers

In recent years, some major carriers have shifted focus toward bulkier, heavier shipments to maximize trailer capacity. Their networks are increasingly optimized for larger boxes, which can lead to smaller packages being routed less efficiently, experiencing longer transit times, or incurring additional fees.

These changes reflect broader shifts in logistics—many driven by warehouse automation, cost structures and last mile delivery challenges. For businesses shipping lightweight consumer goods, apparel, wellness, or similar products, the result can mean slower delivery and rising costs. Understanding these changes allows businesses to make smarter carrier choices and seek options that better accommodate smaller shipments.

Why Specialized Carriers Make a Difference

Choosing a carrier that specializes in the size and type of packages your business typically ships can improve delivery performance and lower costs. Those that are optimized for small eCommerce parcels—like OSM Worldwide—design their networks, technology and partnerships around the requirements needed for large volumes of lightweight packages.

Here are a few things to consider when evaluating a carrier for small parcels:

  • Network optimization: Is the carrier’s network designed for your parcel profile?
  • Transit speed: Are small packages moved quickly and efficiently, or are they grouped with heavier freight that takes longer to process?
  • Dimensional weight policies: Does the carrier apply dimensional weight fairly, or does it significantly inflate per package costs?
  • Tracking and visibility: Are door-to-door updates available at every step of the journey?
  • Support for integrations: Can the carrier integrate easily with your order and fulfillment systems?
  • Service consistency: Does the carrier provide predictable delivery windows for small packages?

The Role of Small Parcel Expeditors

Specialized carriers (also known as small parcel expeditors) bridge the gap between major national carriers and local delivery services. OSM Worldwide, for example, partners with final mile carriers to provide nationwide delivery for small packages through its optimized OSM Premium Network®. This hybrid model allows businesses to benefit from national reach, fast transit times and reliable tracking—without the challenges that come with shipping through networks not built for smaller packages.

Understanding how carriers structure their networks and pricing models—and aligning your shipping needs with a carrier that specializes in your parcel type—can lead to improved service, greater efficiency and long-term cost savings. If small packages are a key part of your operation, it’s worth exploring whether a specialized partner like OSM can provide better value than a one-size-fits-all provider.

Contact us today to see how the OSM Premium Network can help you get more from every shipment.

To dive deeper, check out some of our other blogs. You can learn why rates aren’t everything when it comes to shipping, how to maximize growth with the right shipping partner and the value of diversifying shipping carriers.

About the Author

Herm Curk has been a partner and executive vice president at OSM Worldwide for 15 years. He oversees contracts, pricing, and sales and helps build relationships that have allowed the organization to continue to thrive and move to the next challenging opportunity. A one-time aerospace engineering major, Herm has an analytical mind, wired for taking things apart and reassembling them for a more successful application.