Late FedEx Package Delivery

Late FedEx package delivery: request for a refund

by BlogTSM Services

Does your business ship packages through FedEx? Are you aware that your business is eligible for a refund if a package is delivered late by a minute? But, FedEx will not notify businesses if packages delay. Companies have to keep track of late packages. In addition, FedEx will not notify companies if they suspend or revoke the refund. FedEx refunds are primarily for Express and Ground services with a guaranteed delivery date and time.

FedEx Express

Express shipments involve shipping packages by a given deadline domestically or internationally. FedEx Express shipping services disruption was due to the pandemic, war, etc. Only select FedEx Express services are eligible for FedEx Money-Back Guarantee (MBG) as on January 3, 2023. They are

  • FedEx First Overnight®
  • FedEx Priority Overnight®
  • FedEx Standard Overnight®
  • FedEx First Overnight Extra Hours
  • FedEx Priority Overnight Extra Hours
  • FedEx Standard Overnight Extra Hours
  • FedEx International First®
  • FedEx International Priority®
  • FedEx International Priority® Express
  • FedEx International Priority® Freight

However, FedEx has suspended the money-back guarantee for services like FedEx Ground®, FedEx Freight®, FedEx SameDay® City, and FedEx Office® services till further notice.

Understanding FedEx Money-back Guarantee Policy

According to FedEx’s Money-back Guarantee (MBG) policy, if there is a service failure by FedEx, a business can recover all or a portion of the FedEx charges for a shipment. Late FedEx package delivery help shippers get about 100% refund of their shipping costs. In addition, FedEx offers Money-back Guarantee services to its customers when negotiating contracts. Shippers can receive a refund from FedEx for fifty or more service failures like lost packages, wrong address correction charges, and more.

Exceptions and Limitations to FedEx Money-Back Guarantee Policy

Like any policy, there are exceptions and limitations to the FedEx Money-Back Guarantee Policy. The limitations are

  • FedEx refunds will be credited to the payer only
  • One refund is for each package
  • In a multi-package shipment, a refund request for each package is possible when there is a service failure
  • It is calculated on the number and weight of packages within a shipment where there is service failure for FedEx International Priority Direct Distribution and FedEx International Priority Direct Distribution Freight
  • MBG applies only to transportation charges and not to taxes, duties, or other charges
  • It does not apply to invoice adjustment requests based on overcharges or shipments to P.O. Box addresses for delivery
  • It does not apply to shipments where the recipient has requested modified or customized delivery

Late Delivery Refund Exceptions

FedEx will not pay transportation charges in the form of a refund or credit for

  • Dangerous goods or dry ice shipments
  • Undeliverable or returned packages
  • Wrong address or ZIP code on the shipments
  • Unavailability or refusal of a person to accept delivery or sign the package
  • Customs or regulatory delays
  • Incorrect tracking numbers applied on FedEx shipments by customers
  • Shipments for delivery seven days before Christmas Day
  • Shipment scheduled on Wednesday before Thanksgiving
  • Incomplete recipient information

Further information about FedEx exceptions and limitations to its Money-Back Guarantee policy is available in the FedEx Service Guide, 2023.

How to request a FedEx refund?

FedEx refunds are possible only when there is a claim request. The claim request for a FedEx refund has been filed within fifteen calendar days from the invoice date. A refund request due to a service failure is possible by the following methods

  • Using internet application-FedEx Billing Online at fedex.com; or
  • Using the invoice adjustment feature at fedex.com; or
  • Through telephone invoice adjustment system at 1.800.463.3339 by saying “billing.”

Further, the request must have a FedEx account number,  if any; the FedEx tracking number; and the date of the shipment.

Shippers will find it difficult to audit each invoice to claim refunds from FedEx. Further, during carrier contract negotiations, FedEx may tempt shippers with a Money-Back Guarantee waiver with discounts. Shippers need professionals who help with contract negotiations and claiming FedEx refunds in time.

 Audintel helps shippers claim their refunds from FedEx in time. Our software and team of experts audit invoices and save money for our clients. In addition, Audintel helps clients understand the fine print of the carrier contracts so that they do not sign on Money-Back Guarantee Waiver and lose money.    

To Sum it up

Online businesses find it troublesome to explain the late delivery of packages to customers. In addition to customer dissatisfaction, shippers lose money if they don’t receive refunds from FedEx in time. Partnering with Audintel helps shippers receive refunds from FedEx in time. Audintel monitors packages for late deliveries and discusses with FedEx service failures for refunds. Contact us at +1 (619) 354 8539 to discover about FedEx money-back guarantee services or visit our Audintel website.

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What can you expect in the new year from FedEx and UPS General Rate Increase?

by BlogSpend Management

FedEx and UPS issue General Rate Increases(GRI) every year. Businesses have to prepare for rising shipping costs based on their shipping profile. Keeping this in mind, we would like to study the General Rate Increases (GRI) of these two premium parcel carriers for 2022. We will also look at the increase in surcharges and other additional charges of the two shipping carriers.

This article will help shippers understand the price changes in 2022 and choose the parcel carrier according to their needs.

Highlights of General Rate Increase 2022

General Rate Increase (GRI) gives shippers an estimate of the rise in base shipping rates. Depending on the contract negotiations with the parcel carriers, the impact on the shipments for shippers will vary. In addition, accessorial charges also increase every year. The shipping costs vary based on factors, such as distance/zone, dimensional weights, and more. So, our team at Audintel has identified three key highlights from the GRIs of 2022. Further, this comparison is for the United States domestic shipping rates and surcharges only.

A General Rate Increase at the service level

FedEx and UPS offer competitive rates for the domestic US shipping market. However, there appears to be a marked rise in the shipping rates, as seen in the below charts.

List rates of UPS and FedEx

The charts (Fig. 1 and Fig. 2) are for list rates, mainly focusing on 1-pound packages in zone 2. There are eight zones for US domestic shipping zones based on distance. As the distance increases, so do the shipping costs. The shipping list rates are calculated based on the weight of the packages and the shipping destinations. In this chart, UPS and FedEx Ground services show a ~6.8% increase in rates from 2021. Incidentally, parcels with a dimensional weight of more than 150 pounds appear to have a low rate increase.

UPS Rates 2022

Fig. 1: UPS 1lb daily rates  for services in Zone 102(Next Day Air), Zone 242 (2nd Day Air AM), Zone 202 (2nd Day Air), Zone 2(Ground) for destination ZIP codes starting with 004-005

FedEx Rates 2022

Fig. 2: FedEx 1lb rates  for services in Zone 2

Minimum charge reductions as seen for UPS and FedEx

A discount for low-weight packages is possible with minimum charge reductions. It is known as “Minimum Net Charge” by UPS and “Minimum Package charge” by FedEx. Both parcel carriers, UPS and FedEx, offer minimum charges to their customers. Shippers having a large volume of shipments can negotiate for minimum charge reduction in their carrier agreements.

UPS Minimum charges

Fig. 3: UPS Minimum charges for packages

FedEx Minimum Charges

Fig. 4: FedEx Minimum charges for packages

Thus, negotiating for minimum charges with parcel carriers is vital for shippers. Our experts in Audintel help businesses negotiate minimum costs in their contracts. Contact us for further information on UPS and FedEx minimum charges.

Accessorial fees and surcharges

With the General Rate Increase announced each year, accessorial fees and surcharges increase annually. We see an increase in some vital surcharges, such as Additional Handling Charges, Delivery Area Surcharges (DAS), and Residential Surcharges. The impact of these surcharges affects the bottom line of shippers. In the case of UPS, an immense change in 2022 is the addition of Remote Area Surcharges for the lower 48 states. It is known as “US48 Remote Area Surcharge”. Earlier, the Remote Area Surcharge was for some zip codes in Alaska and Hawaii.

UPS Surcharges 2022

Fig. 5: UPS Surcharges

Fig. 5 of UPS surcharges indicates an increase in shipping prices zone-wise. In addition, it appears the introduction of Remote Area Surcharge for additional zip codes in the US will affect the profits of some businesses.

FedEx Surcharges 2022

Fig. 6: FedEx Surcharges

For FedEx surcharges, our observation is that the Additional Handling Surcharge for zone 2 is less than the charges of 2021. Further, the oversize charges for zone 2 are less than the amount charged in 2021. This information is vital for businesses sending oversize parcels to zone 2. It is good news for shippers sending packages for short distances.

As seen in the above charts, the surcharge increase is due to Additional Handling Charges of packages. In addition, Large Package surcharges (UPS) and Oversize packages (FedEx) indicate the rise in price due to the size of the parcels.

Worried about rising shipping charges – let Audintel help you

Our intuitive audit platform provides innovative solutions to businesses. Audintel addresses the challenges faced by shippers. Our team aids shippers in reducing the impact of the steep GRIs, announced by shipping carriers. We help businesses to

  • negotiate better deals
  • receive discounts for services, surcharges
  • choose the best-quality services of alternate, low-cost parcel carriers

Audintel supports shippers in reducing the shipping charges announced by shipping carriers with our contract negotiations services.

Closing Remarks

Choosing the ideal shipping carrier is difficult. In addition, different shipping carriers have various shipping pricing models that may confuse the shippers. Audintel’s team aids businesses to have a clear idea about the carrier agreements they are signing with the parcel carriers. Our aim is that shippers save money and garner profits simultaneously. So, learn about the impact of GRIs affecting your parcel delivery from Audintel. Reach out to our team at [email protected] or by visiting the Audintel website or call us at +1 (619) 354 8539.