UPS Waiver Basics
There are a few things to remember about a UPS waiver. For those of you shipping with UPS, you're aware that they guarantee their services. This excludes their hybrid services. For example, let's say that you're shipping a package from Southern California to New York.
Based on the service that you select, that package should arrive on a certain day and at a certain time. Let's say that it does not arrive based on UPS' delivery commitment. You are then entitled to a refund based on their service guarantee.
Now, when UPS misses their service guarantee, they know it. They have sophisticated tracking systems. They know when they deliver a shipment late. And they also have the ability to give you instant credit you for that shipment. But, this isn't automatic. The onus is on you. It's your responsibility to identify that package, and then to contact UPS if you want your money back.
How to Spot a Guaranteed UPS Waiver
I wanted to inform you of a recent contractual trend that is on the rise. It also jeopardizes your right to secure late-delivery refunds. This could be the case when UPS misses their service commitment. So, UPS refers to this inclusion as a guaranteed service refund. They call it a GSR waiver. Over the past several months, UPS has been adding service guarantee waivers. It is now standard practice to new and revised pricing agreements.
This is all in an effort to limit your ability to recover refunds for eligible shipments that are not delivered on time. When challenged, UPS might have a certain position, in order to propose certain discounts and maintain their profitability. They would say that it's necessary to limit their exposure to giving you service failure refunds. So, regardless of the rationale presented by UPS, signing a waiver of late shipment guarantees is not required. It's not advisable or necessary, and it only serves their best interests if you concede to a waiver.
UPS Profits No Matter What
Now, I can speak as someone who has worked in the parcel industry for over two decades. I can state with confidence about UPS' profitability with any individual customer. Regardless of the level of discounts, their profitability is not contingent upon them honoring their time in transit guarantees. Your customers count on you to ensure their orders deliver on time, and you have the right to expect that UPS holds to that same standard.
Here's what to look out for within UPS waivers. UPS may include the language in the incentive section of their agreement. Or it's in a separate addendum. They may present it as an outright waiver. Or it could be a performance threshold which stipulates an average on-time performance. Below this threshold, they will tender a quarterly rebate. When in doubt, Lojistic is available to review any carrier agreements before signing. This is at no cost to you. Please lean on us to ensure you are not stripped of your right to refunds for the shipments delivered late by UPS.