Meet Sifted in Booth 201 at PARCEL Forum ’26 - Learn More

Sifted logo

What Is a “Shipping Exception” and What You Can Do about It

by Sifted Team

Jul 31, 2023

6 min read

In UPS and FedEx shipping terms, a “shipment exception” refers to a scenario where there is an unexpected event or issue that causes a delay or disruption in the normal delivery process of a package or shipment. This status signals that there is a problem with the delivery and the package cannot be delivered as originally scheduled. Shipment exceptions can occur for various reasons. Here are some of the top reasons:

  1. Weather-related issues: Severe weather conditions, such as hurricanes, snowstorms, or floods, can disrupt transportation and cause shipment delays.
  2. Incorrect address or missing information: If the address provided is incorrect or incomplete, the carrier may not be able to deliver the package and will flag it as an exception.
  3. Delivery attempt failure: If the carrier attempts to deliver the package but no one is available to receive it, they might mark it as an exception and leave a delivery notice for the recipient to arrange a redelivery or pickup.
  4. Customs clearance delays: For international shipments, delays can occur due to customs processing or regulatory issues.
  5. Damaged package: If the package is damaged in transit, it may be held for inspection or returned to the sender.

Security-related concerns: In some cases, security issues or safety concerns may lead to delays or exceptions in the delivery process.

When a shipment exception occurs, the carrier will make efforts to resolve the issue and complete the delivery as soon as possible. Depending on the specific reason for the exception, the recipient may need to take certain actions, such as providing additional information, contacting the carrier, or arranging for pickup at a local facility.

If you encounter a shipment exception on your package, it’s recommended to contact the carrier’s customer service for further information and assistance in resolving the matter.

FBA vs FBM

We’ll File Your Lost & Damaged Claims For You

Protect Your Customer Experience and Your Bottom Line

UPS and FedEx have policies in place to address late deliveries, no proof of delivery, and damaged packages. Here’s an overview of their refund and claims processes for these situations:

  • Late Deliveries
    • UPS: UPS offers a service guarantee for many of its shipments. If your package does not arrive by the guaranteed delivery time, you may be eligible for a refund of shipping charges or a credit applied to your account. However, certain factors, such as weather-related delays or incorrect address information provided by the sender, may exempt the shipment from the service guarantee.
    • FedEx: FedEx also provides a money-back guarantee for certain services. If a shipment is not delivered on time as per the guarantee, you may be entitled to a refund or credit of shipping charges.
  • Lost and No Proof of Delivery (NPOD) Packages
    • If you did not receive your package, and the carrier shows it as delivered, you can contact their customer service to investigate the situation. They may conduct an investigation to determine the delivery status and resolve the issue.
  • Damaged Packages
    • UPS: If your package arrives damaged, you should contact UPS customer service immediately to initiate a claim. UPS may require documentation, such as photos of the damaged package and its contents, for the claim process.
    • FedEx: Similarly, for damaged packages, you should contact FedEx customer service to file a claim. You may need to provide evidence of the damage to support your claim.

It’s important to note that the specific refund and claims processes, as well as the eligibility criteria, can vary based on the type of service used and the terms and conditions of the shipment.

Additionally, there are typically time limits for filing claims, so it’s essential to act promptly if you encounter any issues with your UPS or FedEx shipments.

For the most accurate and up-to-date information on their refund and claims policies, visit the official websites of UPS and FedEx or contact their customer service directly. They will be able to guide you through the process and help you with any concerns regarding your shipments.

Some shippers choose to file these claims in house, but the process can be time consuming and complex. A company like Sifted can file your lost/NPOD & damaged package claims on your behalf.

Check out related resources at Sifted.

Green Mountain Alternatives & Competitors for Parcel Spend Management (2026)

Green Mountain Alternatives & Competitors for Parcel Spend Management (2026)

Parcel audit and spend management software helps businesses recover billing errors, monitor carrier performance, ...
Read More
Meet Sifted at PARCEL Forum ’26, Booth #201

Meet Sifted at PARCEL Forum ’26, Booth #201

Leading logistics, transportation, retail, and eCommerce professionals are gearing up for PARCEL Forum '26, the ...
Read More
Sifted vs. TransImpact: Why Shippers Are Switching to Continuous Optimization

Sifted vs. TransImpact: Why Shippers Are Switching to Continuous Optimization

Both Sifted and TransImpact help organizations reduce parcel costs through invoice auditing, carrier optimization, ...
Read More
FedEx 2026 Demand Surcharge Guide

FedEx 2026 Demand Surcharge Guide

Note: This article covers Ground and Express charges only. For a comprehensive overview of international and other ...
Read More
Amazon’s 2026 Holiday Fulfillment Fees: What Sellers Need to Know

Amazon’s 2026 Holiday Fulfillment Fees: What Sellers Need to Know

Note: This article covers Fulfillment by Amazon (FBA), Remote Fulfillment with FBA, Multi-Channel Fulfillment ...
Read More
Transportation Insight Alternatives and Competitors for Parcel Spend Management

Transportation Insight Alternatives and Competitors for Parcel Spend Management

Parcel shipping costs rarely stay predictable. Rates change, surcharges add up, carrier invoices contain errors, ...
Read More
Loop Alternatives & Competitors for Parcel Spend Management (2026)

Loop Alternatives & Competitors for Parcel Spend Management (2026)

Managing parcel spend is no longer just about recovering billing errors after the fact. Today's shipping teams are ...
Read More
What Process Intelligence Looks Like in Parcel Shipping

What Process Intelligence Looks Like in Parcel Shipping

"There is no enterprise AI without process intelligence." That's the case Alex Rinke, co-founder of Celonis, has ...
Read More
USPS Is Adjusting Dimensional Pricing in July. Here’s How to Stay Ahead of It.

USPS Is Adjusting Dimensional Pricing in July. Here’s How to Stay Ahead of It.

Starting July 12 USPS is dropping its dimensional weight divisor from 166 to 139 and beginning to round fractional ...
Read More
Intelligent Audit Alternatives & Competitors for Parcel Spend Management (2026)

Intelligent Audit Alternatives & Competitors for Parcel Spend Management (2026)

Parcel audit and spend management software helps businesses recover billing errors, monitor carrier performance, ...
Read More
Shipware Alternatives and Competitors: Parcel Spend Management Platforms Compared

Shipware Alternatives and Competitors: Parcel Spend Management Platforms Compared

Parcel spend management covers a lot of ground. Recovering billing errors and shipping costs. Auditing carrier ...
Read More
How to Run a More Profitable 3PL Business

How to Run a More Profitable 3PL Business

The 3PL market is more competitive than it has ever been. Clients have more options, their expectations around ...
Read More
No results found.

Profile Monitoring
Get always-on monitoring across cost-sensitive KPIs

Scenario Modeling
Test supply chain adjustments in a virtual sandbox

Carrier Management
Gain transparency into carrier performance and costs

Monitoring via Alerts
Stay ahead of every change in your parcel operation

Parcel Audit
Continuously audit your entire parcel operation

Accounting Automation
Automate the manual and error prone processes

Reporting & Analytics
Centralize insights, visualize trends, and create reports

3PL Brand Management
Simplify and accelerate pricing + billing workflows

SiftedAI Copilot
Have access to an always-on logistics analyst

Use Cases

For Finance Pros
Control shipping spend with automated intelligence

For Logistics Pros
Oversee shipping spend and performance across carriers

For Executives
Get clear visibility into parcel spend, risk and performance

For Retail
Control shipping cost and performance across carriers

For Manufacturing
Manage complex parcel spend with operational clarity

For Health & Life Sciences
Increase oversight into critical shipment performance

For 3PLs
Optimize margin and transparency across brands

For PE Firms
Analyze and act on parcel data to protect EBITDA

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM impacts your shipping costs

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate CO2 emissions to reduce impact

Guides
Download free reports and
expert how-tos

Frequently Asked Questions
Explore top questions from shippers evaluating SiftedAI

Unboxed Newsletter
Subscribe for parcel news, predictions & tips

Logistics Intelligence
For parcel shippers