In March of 2020, both UPS and FedEx suspended their money back service guarantee due to the impact from COVID-19. It was stated that the unprecedented complexities and the daily issuance of work and travel restrictions from local, state, and national governments around the world were impacting the carriers’ ability to meet, let alone guarantee, standards of service. That was true for all business at that time. Shippers were all impacted, especially those shipping perishable products.
As 2020 progressed, shippers continued to struggle with financial impacts as the carriers imposed additional fees. FedEx and UPS followed each other’s lead with peak surcharges, restrictions on volume for large shippers, and additional fees throughout the year. And now in 2021, shippers face the annual general rate increase as well.
Finally there is some good news this past week as both UPS and FedEx reinstated their service guarantee only on select services. This means that if the package does not get delivered within the contracted timeframe, the shipper can request a refund on their shipping cost. Here are the details:
| FedEx |
| Effective April 6, 2021, the FedEx Money-Back Guarantee will be reinstated for select Express services for US domestic and US import/export shipments (US payors only). Services include:
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| UPS |
| Effective April 5, 2021, the UPS Service Guarantee will be reinstated only for UPS Next Day Air services and UPS Worldwide Express services. Services include:
• UPS Next Day Air Early • UPS Next Day Air • UPS Next Day Air Saver (Extended to end-of-day 11:59 p.m.) • UPS Worldwide Express NA1 • UPS Worldwide Express Plus • UPS Worldwide Express • UPS Worldwide Express Saver • UPS Worldwide Saver • UPS Worldwide Express Freight Midday • UPS Worldwide Express Freight
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Although the Service Guarantee remains suspended for all other UPS and FedEx services, it’s a step in the right direction by both carriers to once again inspire confidence for their commitment to their service levels and ensure that shippers do have some recourse when service levels are not met.
Gavin Creado is a National Account Manager for LJM Group, working closely with clients to manage cost optimization initiatives. His experience spans over 20 years with roles in sales operations, sales execution, and account management for Fortune 500, SMB, and Start-Up companies. LJM Group has been helping shippers save time and improve profitability with expert FedEx & UPS parcel contract analysis and rate negotiations, parcel invoice auditing, as well as shipping consulting services focused on cost management since 1998. Please visit our website at www.myLJM.com. To speak with Gavin, please call 631.844.9500 or email gavinc@myljm.com.
