FedEx to start charging by package size

FedEx plans to start charging for ground delivery by package size. This includes smaller items previously calculated by weight. The new "dimension-based pricing" is directly targeted at bulky, but light packages containing items like toilet paper, sweaters and shoes.

For retailers, the new change could be a major upheaval for online shopping whose growth has been propelled in part by stores offering free shipping. The big question now is whether UPS (NYSE: UPS) will follow the pricing move. Story