Will Parcel Refunds Return in 2022?
A partial return
In April 2021, UPS and FedEx reinstated partial service guarantees on their more expensive shipping options. UPS also extended their guaranteed delivery time for UPS Next Day Air SaverÂź deliveries from 3 PM to 11:59 PM on the guaranteed day of delivery.While a partial return was better than nothing, the new terms didnât last long.
In October, UPS announced that it would extend delivery commitment times for UPS Next Day AirÂź destined to residential locations from 10:30 AM to 12:00 PM until further notice.
On November 1, FedEx suspended its Money-Back Guarantee until January 16, 2022. This leaves shippers using FedEx without an opportunity to claim refunds during the busiest time of the year. Will the guarantee return for all its services? FedEx is leaving their options open, stating âThe status of the money-back guarantee for these FedEx services and additional FedEx services worldwide is being evaluated on an ongoing basis, and our focus remains on continuing to provide the best possible service to our customers during this period of uncertainty.â
Whatâs next for service guarantees in 2022?
In the past, UPS and FedEx took responsibility for late deliveries, service failures, and incorrect charges by offering refunds or credits. Now, service guarantees are no longer guaranteed. Weâve learned that the carrier can (and will) revoke service guarantees during times of high traffic.Should you just accept the ânew normalâ and pay for unpredictable service? No! While you may not be able to force the reinstatement of service guarantees, there is something you can do.
Parcel rate contracts can be negotiated at any timeâ not just when the contract ends. If you negotiated the contract without the help of a shipping professional, youâre probably paying too much. The team at ShipRx has spent our careers writing contracts on both sides of the table. Weâve worked for the carriers, and weâll coach you on the strategies that will help you save the most money.
The best part? We donât get paid unless youâre saving money, so youâve got nothing to lose. When you negotiate a contract with the help of ShipRx, you can be confident that youâre saving moneyâ whether or not service guarantees make a full return in 2022.