Frequent and Costly UPS & FedEx Billing Errors Author: Luke Kupersmith
June 27, 2011

Given the advanced technology and automated systems, it is a common (invalid) assumption that the customer billing systems of carriers such as UPS and FedEx are infallible and afford little to no room for billing errors. Shippers subscribing to this line of thought are committing a considerable oversight.

Although many components of a carrier’s billing process are automated, there are dozens of human inputs that occur between the time a shipping label is created and the time a package is delivered. These human inputs leave a margin for error that ultimately results in a shipper overpaying their carrier, unless a comprehensive carrier invoice audit is implemented.

The following are a few common carrier billing errors:

Invalid Residential Charge – Upon delivery of a package, the driver will manually input whether the shipment was delivered to a residential or commercial address. Whether by a mistaken input in the driver’s delivery device or an erroneous determination of residential as opposed to commercial, the shipper carries the cost of the driver’s error.

Invalid Address Correction Charge – When a carrier edits any detail of a shipment’s delivery address an address correction fee is automatically assessed. (Example: “Unit #” is edited to reflect “Apt. #”) Address correction fees are legitimate when the correction impedes the driver’s ability to deliver the package to the original address provided by the shipper. In the case of the example above (and many others), the address correction fee should be and can be refunded to the shipper.

Invalid Dimensional Weight Adjustment – Via dimensional weight (DIM) charges, carriers like UPS and FedEx have the ability to rate lower density shipments at a higher weight…thus increasing the shipping cost. If there are DIM charges appearing on your carrier’s bill for box sizes that do not represent one of your company’s standard box sizes, then it is likely that a DIM charge was incorrectly assessed and can be refunded to your account.

Lojistic can help ensure the accuracy of your carrier bills…and much more. Our team has help hundreds of companies implement solutions to reduce shipping costs. Contact us today to review the parcel and freight audit solutions we can provide for you.

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