Comparing Billing Methods: Individual vs. Multi-Piece Shipments (Combined Billing)

Both UPS and FedEx have a feature that allows the shipment of an order containing multiple parcels to ship with the related tracking numbers linked together in their system. This allows you to enter one of the tracking numbers for the shipment and access all the related parcels from that entry.  

Many shippers are under the impression that there are cost savings for shipping multi-piece shipments (MPS), also called multi-package shipments or combined billing. What many ecommerce shippers don’t realize is that this billing method is not available for some shipment types (namely US domestic), and even when there is a master tracking number for multiple packages within a single shipment, those individual packages are billed separately at a very different cost.  

Here is an overview of billing methods for two different shipment package types, both individual packages shipped together and combined billing for multiple-packages tracked as a single shipment.  

Individual Shipments vs. Multi-Package Shipments  

Let’s look at two methods of billing: shipping packages individually versus using a combined weight method of shipping multiple packages as one shipment. 

Individually Billed Packages  

If 4 cartons are shipped individually, Zone 5 using UPS Commercial Ground. Each one is 10.1 pounds which rounds for billing to 11 pounds. Each 11-pound carton costs $19.78, so this shipment costs a total of $79.12.  

Combined Weight Method (Multi-Piece Shipment)  

4 cartons, each 10.1 pounds are included in a single shipment, Zone 5 using UPS Commercial Ground. This single shipment will add up to a combined weight of 40.4 pounds, which rounds for billing to 41 pounds. In this scenario, the shipment would cost $43.80. 

For the purposes of a simple comparison, exclude all surcharges and accessorial fees for simplicity, use 2025 UPS Commercial Ground published rates.  

Which Method is Right? When to Use Multi-Package Shipping 

Since the examples above are US domestic shipments, the individual calculation method is correct. Even if an ecommerce shipper combines parcels into a multi-package shipment, to simplify for a single shipping label and single tracking number, the shipping rate will be billed as individual units. Stated another way, both UPS and FedEx will bill the shipper for 4 cartons individually.  

While many may think they can streamline and lower their shipping costs by combining packages into a single order, both UPS and FedEx will bill individual parcels for all domestic shipments. 

Now, MPS shipments can be billed for some international shipping, for both UPS and FedEx. When using the following services below, shippers can plan on a bill for the total shipment weight, not individual packages.  

UPS Services That Support MPS Shipment Pricing 

UPS refers to the combined weight method as “shipment pricing”, and it is calculated as the total of the billable weight of all packages in the shipment. It is available for UPS International Export Shipments using these services: 

• UPS Worldwide Express Plus® 
• UPS Worldwide Express® 
• UPS Worldwide Express Freight® Midday 
• UPS Worldwide Express Freight® 
• UPS Worldwide Saver® 
• UPS Worldwide Expedited® 
• UPS® Standard 

UPS International Import Shipments using these methods: 

• UPS Worldwide Express Plus® 
• UPS Worldwide Express NA1® 
• UPS Worldwide Express® 
• UPS Worldwide Express Freight® Midday, 
• UPS Worldwide Express Freight® 
• UPS Worldwide Saver® 
• UPS Worldwide Expedited® 
• UPS 3 Day Select® from Canada 
• UPS® Standard 

FedEx Services That Support MPS Shipment Pricing 

The FedEx services that support multi-shipment pricing include: 

• FedEx International First® 
• FedEx International Priority® Express 
• FedEx International Priority® 
• FedEx International Economy® 
• FedEx® International Connect Plus 

When Did This Change Happen? How to Learn More 

Elements of carrier pricing, particularly with UPS and FedEx, are subject to frequent change. While rate increases are typically well-announced, changes to surcharges and other service offerings are occasionally a layer deeper. 

At one time domestic shipments supported multi-package shipping—UPS eliminated it on the domestic side in 2020, and FedEx eliminated it on the domestic side years before that. 

Another added confusion is that many parcel manifesting systems are still calculating domestic, multi-parcel shipments incorrectly (by the combined method). This ironically includes ConnectShip, which is a wholly owned subsidiary of UPS. 

Ecommerce shippers need to understand these less visible changes. For example, Delivery Area Surcharges and Extended delivery Area Surcharges are each tied to lists of zip codes that can change. The removal of 10 zip codes and the addition of 5 zip codes should not be viewed as a net-reduction of 5, since the added zip codes may be much heavier populated than the ones removed. These changes tend to slip attention, both from an awareness perspective and a system perspective. 

It’s important to work with a 3PL partner or transportation expert to fully understand all costs and managing spend. 

Tags: freight