FedEx Delivers An Empty Guarantee and Its Brilliant! | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) - [ Login](https://app.lojistic.com/demo/account/login?trackDemo=false) - [View Demo](https://app.lojistic.com/demo) - [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [ ](https://www.lojistic.com) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) mobile navigation toggle - Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) FedEx Delivers An Empty Guarantee and Its Brilliant! ==================================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)January 23, 2019 FedEx business customers spending around $60,000 or more annually can expect to see a waiver of their “Money Back Guarantee” in their next FedEx Agreement revision, assuming a waiver isn’t already there. A waiver of the FedEx Money Back Guarantee eliminates a customer’s right to a refund when FedEx fails to meet their time in transit commitment (aka guarantee). UPS and FedEx have been “selling” their customers on service waivers (in UPS-land it’s called a GSR Waiver) for many years, but FedEx has struck out with renewed vigor to ‘have their cake and eat it too.’ By default, they are now including service waivers in new/renewed customer agreements, sometimes unbeknownst to the shipper. Amazingly, in many cases they are getting away with it. In the world of small parcel shipping, service level guarantees are paramount. Whether a business elects to send a shipment to their customer via an expedited service or ground service, the expectation is that the shipment be delivered on-time, according to the carrier’s delivery commitment for the service level selected. On the sales & marketing side of things, FedEx (and UPS) tout their high service level performance and go so far as to back it up with an actual guarantee. In a nutshell their guarantee states that business customers have a right to a refund (transportation charge only) if the service level commitment isn’t met…but, only ***if*** the customer notices ***and*** then asks for a refund. On the front end, these guarantees help the carriers sell new business, keep existing business and justify the ever-increasing prices they charge. It seems likely that FedEx’s extra effort to preclude themselves from responsibility to fulfill their money back guarantee has to do with the increasing number of their customers who are actually taking them up on the money back offer. Over the past 5 – 10 years there has certainly been a notable increase in the number of parcel audit companies, a space that we, Lojistic, have operated in for a decade and a half. Naturally, FedEx (and UPS) are looking for ways to maintain the perceived value of their service guarantees while simultaneously minimizing the financial impact of such. When a service guarantee is eliminated for a particular company, as FedEx is now doing by default for all high-volume shippers, they have brilliantly delivered an empty guarantee. Whereas a primary accountability mechanic is taken from customers of FedEx & UPS when they agree to a service guarantee waiver, by no means does the carrier intentionally alter their performance for those individual customers. Their massive fulfillment networks are not individually treating “waiver” customers differently than everybody else. Over time, however, there is a creeping slip to service that is enabled. At some point those who have waived their right to service guarantees become the majority. Maybe that’s already the case. It eventually becomes a challenging predicament for the carriers to focus money correcting on-time performance flaws or to instead pocket the extra profit. One could argue that market competition will be the accountability mechanic, but it’s pretty obvious that there is an absence of healthy competition in the small parcel carrier space. It’s all going to shake out one way or another. In the meantime, I wish you well my shipper friends. FedEx, you’re brilliant. Have that cake… and eat it too. \[call-to-action\]Ready for the 2019 UPS and FedEx rate increase? Let's chat and see how we can save you money!\[/call-to-action\] ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/shipping-costs-the-good-the-bad-and-the-best) [Next Post »](/blog/tms) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. All Currencies ](https://www.lojistic.com/carrier-connectors) - [Industries Served ](https://www.lojistic.com/industries-served) - [Roles Most Impacted & How ](https://www.lojistic.com/roles-most-impacted) - [Use Cases ](https://www.lojistic.com/use-cases) Platform Features --------------------- - [Global Analytics & Reporting ](https://www.lojistic.com/shipping-analytics-software) - [Rate Optimization & RFPs ](https://www.lojistic.com/rate-optimization-rfps) - [Parcel and Freight Audit & Payment +PAY ](https://www.lojistic.com/freight-audit-and-payment) - [GL Coding & ERP Sync ](https://www.lojistic.com/gl-coding-erp-sync) - [Lojistic API & App Integrations ](https://www.lojistic.com/api-app-integrations) Pricing ----------- - [Everything Included – Free Recommended](https://www.lojistic.com/pricing) - [À La Carte Plan ](https://www.lojistic.com/pricing#a-la-carte) Resources ------------- - [White Paper ](https://www.lojistic.com/white-papers) - [FAQ ](https://www.lojistic.com/shipping-faqs) - [Security ](https://www.lojistic.com/security) About --------- - [Culture ](https://www.lojistic.com/culture) - [Careers ](https://www.lojistic.com/careers) - [Partner Programs ](https://www.lojistic.com/partner-programs) - [Ratings & Reviews ](https://www.lojistic.com/reviews) - [Videos ](https://www.lojistic.com/videos) - [Blog ](https://www.lojistic.com/blog) - [Contact Us ](https://www.lojistic.com/contact) Why Lojistic- [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. All Currencies ](https://www.lojistic.com/carrier-connectors) - [Industries Served ](https://www.lojistic.com/industries-served) - [Roles Most Impacted & How ](https://www.lojistic.com/roles-most-impacted) - [Use Cases ](https://www.lojistic.com/use-cases) Platform Features- [Global Analytics & Reporting ](https://www.lojistic.com/shipping-analytics-software) - [Rate Optimization & RFPs ](https://www.lojistic.com/rate-optimization-rfps) - [Parcel and Freight Audit & Payment +PAY ](https://www.lojistic.com/freight-audit-and-payment) - [GL Coding & ERP Sync ](https://www.lojistic.com/gl-coding-erp-sync) - [Lojistic API & App Integrations ](https://www.lojistic.com/api-app-integrations) Pricing- [Everything Included – Free Recommended ](https://www.lojistic.com/pricing) - [À La Carte Plan ](https://www.lojistic.com/pricing#a-la-carte) Resources- [White Paper ](https://www.lojistic.com/white-papers) - [FAQ ](https://www.lojistic.com/shipping-faqs) - [Security ](https://www.lojistic.com/security) [About](https://www.lojistic.com/about)- [Culture ](https://www.lojistic.com/culture) - [Careers ](https://www.lojistic.com/careers) - [Partner Programs ](https://www.lojistic.com/partner-programs) - [Ratings & Reviews ](https://www.lojistic.com/reviews) - [Videos ](https://www.lojistic.com/videos) - [Blog ](https://www.lojistic.com/blog) - [Contact Us ](https://www.lojistic.com/contact) [CHAT WITH US ](#) [Call Us (800) 783-5753 ](tel:8007835753) [Call Us (800) 783-5753 ](tel:8007835753) - [ ](https://www.facebook.com/LojisticUSA) - [ ](https://twitter.com/LojisticUSA) - [ ](https://www.youtube.com/lojistic) - [ ](https://www.linkedin.com/company/lojistic) [ ](https://www.lojistic.com) Send Costs Packing TM - [Privacy & Terms](https://www.lojistic.com/security) © 2026 Lojistic, LLC. All rights reserved. Various trademarks held by their respective owners. © 2026 Lojistic, LLC. All rights reserved. Various trademarks held by their respective owners. #### Lojistic and Cookies #### Manage Privacy Preferences *x* This site uses cookies to personalize your experience and analyze site traffic. By clicking ACCEPT or continuing to browse the site, you agree to our use of cookies. [See our Privacy Policy here](https://www.lojistic.com/data-privacy-and-security) [Customize my settings.](#) ACCEPT By checking the box, you agree to the storing of cookies on your device for the specified purposes. Strictly Necessary CookiesThese cookies are necessary for the website to function and cannot be switched off in our systems. Analytics Cookies [See our Privacy Policy](https://www.lojistic.com/data-privacy-and-security) CONFIRM Lojistic Lojistic Lojistic Facebook Icon Twitter Icon Youtube Icon Linkedin Icon Lock Icon Arrow Symbol Arrow Symbol