UPS and FedEx Guaranteed Services are “SUSPENDED”. What does this mean to you?

Dec 3, 2020 | News

FedEx Guaranteed Services are Suspended UPS Guaranteed Services are Suspended

  • It means you can’t count on UPS and FedEx to live up to their promise of dependable service.
  • You can’t rely on them to deliver packages to your customers on time.
  • You can’t hold them accountable to perform the services you pay so much for.

The on-time guarantee for air service was always a promise of FedEx air services. When UPS entered the air service market, it adopted the guarantee as a price to entry.

Years later, in 1997, UPS suffered a labor strike by the Teamsters.  Businesses across the country were affected.  They were unable to ship packages.  FedEx and USPS did not have the capacity to absorb the UPS volume.  For over two weeks, no new packages were delivered. The result was millions of dollars in lost sales due to non-delivery.

Once the strike was settled, UPS expanded their service guarantee to include all ground packages.  A calculated move to protect marketshare, UPS advertised this expansion of service guarantees as a way to thank shippers, and to demonstrate that they could depend on UPS going forward.  FedEx adopted the ground guarantee after UPS put theirs in place.

Fast forward to the present.  Here we are, nine months into Covid 19, and how dependable does UPS and FedEx service seem today?  Not very dependable at all.

Not only have UPS and FedEx suspended their services guarantees in response to the pandemic, a situation that has radically increased UPS and FedEx volume and profits, but they are setting all-time lows for delivery reliability.  And they’ve taken away your one means of holding them accountable for failed delivery services.

So this is how UPS and FedEx thank you for your business?  After hiking your rates every year, hiding the actual impact of those changes in bogus averages that obscure radical increases in residential surcharges and other accessoral charges the carriers are enjoying record profits and suspend your service guarantees?  They effectively tell the market that on-time delivery is no longer a priority for them?  They remove the one avenue shippers have to hold them accountable and the one internal incentive they have for reliability?  During a pandemic that is wrecking our economy and impacting your business?

Put simply, suspending their service guarantees is UPS and FedEx saying they couldn’t care less about your customers’ satisfaction, and by extension, your business.  That’s what this means to you.  Maybe you should let them know how you feel about that.