FedEx and UPS Suspend Money Back Guarantees
If you’re a business owner who ships your product, there is an important update to be aware of. In normal times, FedEx and UPS offer money-back service guarantees. This guarantee allows you to claim a refund in case a parcel arrives later than the posted timeframe.
However, the shock of COVID-19 has disrupted the supply lines for FedEx and UPS, and in March, both companies announced the suspension of their money-back guarantee programs.
FedEx released a statement on March 23rd stating, “The impact of COVID-19 is causing local, state, and national governments around the world to issue work and travel restrictions on a daily basis which are impacting our ability to meet our high standards of service.”
Similarly, a day later, UPS released the following message, “As the effects of the Coronavirus impact our infrastructure, we will continue to seek guidance from local, state, and national government entities to ensure that we fully align with their regulations while continuing to meet the service levels you have come to expect.”
Both companies proceeded to describe how they will be monitoring the situation, and when the opportunity arises, they expect to reinstate the policy. Until then, it’s important to take this risk into calculation when making shipping decisions.
We recommend allowing for more lead time for shipping because UPS and FedEx systems are full. If the package has to be there sooner, consider upgrading to a faster service level.
Notably, as of July 23rd, neither company has released a date for re-instatement of their guarantee. We will update this blog if this arises, but we recommend planning on its return in the immediate future.
Contact us today if you want to have better rates, or to learn how easy it can be to reduce your transportation costs. Happy Shipping!
