When was the last time your team audited every single express shipment to see if it arrived on time? If you’re like most businesses, the answer is probably never. Yet, every time a guaranteed package arrives late, the carrier owes you a full refund. This is money left on the table. The process of getting it back, however, requires knowing exactly which services are eligible and how to navigate the claims process. We’re here to demystify the FedEx UPS service guarantees. We’ll cover which services have a money-back promise, the fine-print exceptions to watch out for, and the most efficient way to recover these funds.
New “peak” surcharges announced, along with additional time-in-transit and temporary service suspensions
It’s that time of year again! Seasonal retailers are in full-court press to prepare for the fast-approaching busy holiday season. But those of us that rely on FedEx and UPS to get our products to the doorsteps of our customers need to be aware of several new changes that will impact both shipping costs as well as guaranteed transit times.
CHANGES TO RATES DURING THE HOLIDAY SEASON
Both FedEx and UPS have announced new, temporary holiday surcharges that will impact shipping costs for ecommerce businesses this holiday season.
UPS Rate Increases for Holiday 2017
In June, UPS announced a new peak season charge applicable during selected weeks in November and December 2017. The increase means that every residential package shipped at some point during the 2017 Christmas holiday will incur price increases. Residential packages will increase as follows:
- UPS Next Day Early, UPS Next Day Air, UPS Next Day Air Saver: $.81 per package, Dec 17-23, 2017
- UPS 2nd Day Air A.M., UPS 2nd Day Air, UPS 3 Day Select: $.97 per package, Dec 17-23, 2017
- UPS Ground (including Ground with Freight Pricing): $.27 per package, Nov 19-Dec 2, 2017 and Dec 17-23, 2017.
- UPS SurePost: $.36 per package, Nov 19-Dec 2, 2017 and Dec 17-23, 2017.
Other increases:
- Residential packages shipped from an origin within the 48 contiguous states to a destination within Alaska, Hawaii, or Puerto Rico will increase $2.99 for all services Nov 19-Dec 2, 2017 and Dec 17-23, 2017.
- Large Package Surcharges (length plus girth over 130 inches) will increase an additional $24.00 Nov 19-Dec 23, 2017.
- Over Maximum Limits surcharges (actual weight over 150 pounds, single side over 108 inches, or over 165 inches in length plus girth) will increase an additional $249.00 Nov 19-Dec 23, 2017.
Click here to download peak surcharges dates and amounts directly from the UPS website.
FedEx Rate Increases for Holiday 2017
Unlike UPS which is increasing surcharges on every residential package, FedEx limited its increases larger packages only, whether shipped to a commercial address or residence. The following FedEx surcharge increases will take effect during the holiday shipping period of Nov. 20, 2017-Dec. 24, 2017:
- Additional Handling Surcharge: Will increase $3 (27.3%) to $14
- Oversize Charge: Will increase $25 (34.5%) to $97.50
- Ground Unauthorized Package Charge: Will increase $300 (260.9%) to $415
Details of the FedEx surcharges are available at http://www.fedex.com/rates2017.
CHANGES TO SERVICE GUARANTEES
In addition, both package delivery companies announced changes to standard guaranteed delivery times, elongating the time they have to deliver a package and still be considered “on-time”, and also eliminating the service guarantee altogether.
FedEx Service Guarantee Changes for Holiday 2017
FedEx Express
The FedEx Money-Back Guarantee will be suspended temporarily on the following dates:
- Wednesday, Nov. 22, 2017, for shipments that reach their destinations within 90 minutes of the scheduled commitment time.
- Monday, Dec. 18, through Saturday, Dec. 23, 2017, for shipments delivered by the end of the day on the published delivery commitment date for the selected service and destination
FedEx Ground
Packages tendered to FedEx Ground for delivery on the day after Thanksgiving will be scheduled for delivery on that day if the recipient business is open, but in any event, the delivery commitment will be extended to the next business day for application of the money-back guarantee. The money-back guarantee for FedEx Ground and FedEx Home Delivery® will be suspended temporarily for packages picked up on Monday, Nov. 27, through Sunday, Dec. 24, 2017. It’s important to note that FedEx also made changes in 2017 to Valentine’s Day and Mother’s Day service guarantees. FedEx gets an extra 90 minutes on top of published Express transit times to make delivery before the shipment is considered “late”. The FedEx holiday money-back guarantee policy can be found here: http://bit.ly/2vEL0v9. Shippers can also access FedEx’s holiday schedule for important dates and deadlines to avoid shipping delays at: http://bit.ly/2iFqQAj
UPS Service Guarantee Changes for Holiday 2017
Like FedEx, UPS is changing its published guarantee times to allow additional time-in-transit as follows: From Nov. 20 to Dec. 30, a limited number of UPS® Ground and UPS® Standard packages, with transit times of three or more days, and with specific origins and destinations, will require an additional day in transit. Visit ups.com/holidays to use the Holiday Ground Impact Tool to identify changes by ZIP code pairs. All UPS 2nd Day Air and UPS 3 Day Select packages tendered Dec. 18-19 will require an additional day in transit. UPS 3 Day Select packages tendered on Dec. 19 will be delivered after Christmas. UPS advises shippers to reference www.ups.com/ctc at the time of shipping for the most up-to-date time-in-transit details. UPS Air and international Air packages picked up or delivered within the United States are guaranteed throughout the holiday season. However, commitment times for Air and international Air packages scheduled for delivery Nov. 24 and Dec. 18 – Dec. 23 will be extended as follows: UPS Next Day Air Early and UPS Worldwide Express Plus services will be extended by 90 minutes and all other Air and international Air services will be extended to end-of-day. On the other hand, the guarantee for all UPS Ground shipments, including shipments to and from Alaska, Hawaii and Puerto Rico, and UPS Standard shipments picked up or scheduled for delivery between Nov. 27 – Dec. 24 will be suspended. UPS’s year-end holiday schedule is available at: http://bit.ly/2xIir1u. Additional information on the UPS service guarantee during the holidays can be found on the UPS website at: http://bit.ly/2vzpNUg
The Current Status of FedEx and UPS Service Guarantees
If you’ve been in the shipping game for a while, you remember when service guarantees were suspended across the board. It was a tough pill to swallow for businesses that rely on timely deliveries. The good news is that things have shifted. Both FedEx and UPS have brought back their money-back guarantees, but not for every service. This partial reinstatement focuses on their premium, time-sensitive express services, which is a step in the right direction for shippers who pay top dollar for speed and reliability. It’s a clear signal that the carriers are regaining confidence in their network stability, but it also means you need to pay close attention to which of your shipments are actually covered.
A Timeline: From Full Suspension to Partial Reinstatement
After a long period of suspension, both major carriers cautiously reintroduced their service guarantees for select services. UPS was first to make a move on April 5, followed closely by FedEx on April 6. This wasn’t a full return to pre-pandemic standards, but rather a strategic decision to back their most dependable—and expensive—shipping options. For high-volume shippers, this change meant that at least some of their late deliveries could once again be a source of cost recovery. Understanding exactly which services are included is the first step to reclaiming those funds when a delivery commitment is missed.
FedEx Services with a Reinstated Guarantee
FedEx has brought back its money-back guarantee for its fastest domestic and international services. This includes their U.S. domestic Express options, such as FedEx First Overnight, Priority Overnight, and Standard Overnight. The guarantee also applies to their U.S. import and export services, giving businesses that ship internationally a bit more peace of mind. However, it’s important to note that Ground and Home Delivery services remain excluded from this guarantee, so if the bulk of your volume is in those services, you’ll need to manage delivery expectations accordingly without the safety net of a potential refund for delays.
UPS Services with a Reinstated Guarantee
Similarly, UPS has focused its reinstated service guarantee on its premium air services. The guarantee now applies to all UPS Next Day Air services (including Early and Saver) as well as their international UPS Worldwide Express options (including Express Plus, Express, and Saver). This move helps businesses that depend on speedy, cross-country or international deliveries. Just like with FedEx, the guarantee does not extend to their ground services, so any delays with standard shipments won’t be eligible for a refund. This selective reinstatement underscores the value of a diversified carrier strategy to manage risk.
Why Your Late Package Might Not Qualify for a Refund
Even when a service guarantee is in place, getting a refund for a late package isn’t always a sure thing. The carriers have a long list of exceptions that can void the guarantee, and they aren’t always obvious. These exclusions are detailed in the fine print of your carrier service guide and can range from the type of package being sent to circumstances completely outside the carrier’s control. Before you spend time filing a claim, it’s helpful to know the common reasons a refund request might be denied right out of the gate. This knowledge can save you a lot of administrative headaches and help you focus on the claims that are actually winnable.
Common Exceptions for Both Carriers
Both FedEx and UPS have a catch-all exception for events beyond their control, often referred to as “force majeure.” This includes things like severe weather events, natural disasters, riots, strikes, or widespread disruptions to national transportation networks. If your package is delayed because of a blizzard or a major highway closure, the guarantee won’t apply. Additionally, if the delay was caused by an incomplete or incorrect address provided by the shipper, you won’t be eligible for a refund. It’s a reminder that data accuracy on your end is just as important as carrier performance.
FedEx-Specific Exclusions
FedEx has a few specific situations where its money-back guarantee won’t apply, even for its guaranteed Express services. The most common reason for denial is if the delay was caused by something out of FedEx’s control, like the weather or a customs delay on an international shipment. Furthermore, if the recipient was not available to accept the package or if the business was closed, the guarantee is voided. It’s also important to remember that the guarantee is suspended entirely during certain peak holiday periods, which FedEx announces annually, so timing is everything.
UPS-Specific Exclusions
UPS also has its own set of rules that can disqualify a shipment from a refund. For example, the guarantee for UPS 2nd Day Air A.M. packages is void if the destination is a residential address. Another key exclusion is for packages that are subject to a Large Package Surcharge. If your shipment is oversized or requires special handling, any delays are not covered by the money-back guarantee. Like FedEx, UPS also suspends its guarantee for Ground shipments during the busy holiday season, so it’s crucial to check their holiday schedule each year.
How to Request a Refund for a Service Failure
So, you’ve identified a late delivery for a guaranteed service and you’ve confirmed it doesn’t fall under one of the many exceptions. What’s next? The process of actually requesting your refund requires diligence and attention to detail. Carriers don’t automatically credit your account when they miss a delivery commitment; the responsibility falls on you, the shipper, to identify the failure, file a claim within a strict timeframe, and track it to completion. For businesses shipping hundreds or thousands of packages a week, this manual process can quickly become a full-time job, pulling resources away from core business activities.
The Manual Process for Filing Claims
To file a claim yourself, you typically need to log into your carrier’s billing portal, locate the specific tracking number, and submit a refund request. The catch is that you have a very short window to do this. For both UPS and FedEx, you must submit your request within 15 calendar days of the scheduled delivery date. If you miss that deadline, you forfeit the refund. This requires constant monitoring of your shipping data and invoices, which is a significant administrative burden, especially for lean teams. It’s a tedious task that often results in businesses leaving thousands of dollars on the table each year.
Automating Refund Recovery with Invoice Audits
Instead of manually chasing down every late delivery, a far more efficient approach is to automate the process. This is where an invoice audit and recovery service becomes invaluable. These services use sophisticated software to analyze your carrier invoices line by line, automatically identifying every service failure, billing error, and invalid surcharge. The system then files the claims on your behalf, ensuring you never miss the 15-day window. This not only recovers the money you’re owed but also frees up your team to focus on growing the business rather than getting bogged down in administrative tasks.
How Shipware’s Invoice Audit & Recovery Service Works
At Shipware, our process is designed to be completely seamless for you. Once you grant us access to your carrier invoices, our proprietary technology gets to work auditing every single shipment. We identify more than 40 potential points for refunds, including late deliveries, incorrect surcharges, and other billing mistakes. When a service failure is found, our system automatically files the claim with the carrier. The recovered funds are then credited directly to your shipping account. It’s a risk-free way to reduce your shipping costs, as we only get paid a percentage of the savings we find for you.
A Quick Look at Carrier Strengths: FedEx vs. UPS
While both carriers offer a wide range of services, they each have distinct strengths that might make one a better fit for your specific needs. Understanding these differences is key to building a resilient and cost-effective shipping strategy. FedEx built its reputation on its extensive air network and time-sensitive express deliveries, while UPS is known for the sheer scale and efficiency of its domestic ground network. Choosing the right carrier—or the right mix of carriers—often comes down to your product, your customers’ locations, and your delivery promises. A smart carrier diversification strategy can help you leverage the best of both worlds.
FedEx Strengths and Typical Costs
FedEx truly shines in its express air services. If you need to get a package across the country overnight with a high degree of reliability, FedEx is often the go-to choice. Their global air fleet gives them incredible speed and reach for both domestic and international shipments. This premium service, however, comes at a premium price. FedEx Express services are generally more expensive than their ground counterparts. For businesses that rely heavily on fast delivery, negotiating a strong carrier contract is essential to keep these costs manageable while still meeting customer expectations for speed.
UPS Strengths and Typical Costs
UPS boasts an incredibly robust and efficient ground network, making it a powerhouse for domestic B2B and B2C shipping. If you’re moving a high volume of packages that don’t require overnight delivery, UPS Ground is often the most cost-effective and reliable option. Their network density allows them to handle massive volumes with consistent performance. While their air services are also competitive, their ground service is where they truly dominate. The complexity of their pricing, with its numerous accessorial fees and surcharges, means that a thorough invoice audit is crucial to ensure you’re not overpaying for their reliable service.
Frequently Asked Questions
Are all late packages from FedEx and UPS eligible for a refund? Not anymore. While both carriers have brought back their money-back guarantees, they only apply to their premium, time-sensitive services like Next Day Air or Priority Overnight. If your package was shipped via a standard ground service, a delay unfortunately won’t qualify for a refund, even if it arrives later than the initial estimate.
My package was late, but my refund request was denied. Why would that happen? This is a common frustration, and it usually comes down to the fine print. A refund can be denied for several reasons that are considered outside the carrier’s control. This includes delays caused by severe weather, an incorrect or incomplete shipping address, or if the recipient wasn’t available to accept the delivery. Guarantees are also typically suspended during the busiest weeks of the holiday season.
Is it really worth the effort to track and file claims for every late shipment? For businesses shipping a handful of packages, it might be manageable. But for high-volume shippers, manually tracking every delivery and filing claims within the strict 15-day window is a huge administrative drain. The time your team spends chasing down these small refunds often costs more than the refund itself, which is why most companies leave that money on the table.
How does an invoice audit service find refunds I might miss? Think of it as having a team of experts and a powerful software system dedicated to reviewing every line of your carrier bills. An automated service instantly flags every late delivery that’s eligible for a refund and files the claim on your behalf. It also catches dozens of other common errors, like incorrect surcharges or weight discrepancies, that are nearly impossible to spot manually.
If guarantees are so complicated, should I just stick to one carrier? Relying on a single carrier can actually create more risk. A smarter approach is to use a mix of carriers, which allows you to leverage the unique strengths of each one. For instance, you might use FedEx for its reliable overnight air network and UPS for its cost-effective ground delivery. This strategy gives you more flexibility and helps ensure you’re always using the best service for the job.
Key Takeaways
- Confirm which of your shipments are guaranteed: Money-back guarantees have returned for premium FedEx and UPS services, but this doesn’t apply to most ground shipments. Always verify which of your shipping methods are actually eligible for a refund if they arrive late.
- Understand the common refund disqualifiers: A late delivery doesn’t automatically equal a refund. Carriers won’t pay out for delays caused by weather, incorrect addresses, or during announced holiday suspension periods, so it’s important to know the rules.
- Use invoice auditing to recover funds efficiently: Manually tracking every late package and filing claims within the 15-day window is a major administrative burden. An automated audit service handles this process for you, ensuring you reclaim every dollar you’re owed without the manual work.