What Are UPS and FedEx Address Correction Fees? Author: Chris Couwenberg
September 30, 2022

Freight and parcel carriers, especially the UPS/FedEx duopoly, are really clever in how they squeeze profit from their customers. Accessorial fees are one of the largest profit generators for the carriers. Every UPS or FedEx invoice is littered with costly add-ons aka accessorial fees.  And most customers simply pay it. It’s accepted as the cost of doing business. There’s nothing they can do. 

It’s cumbersome for shippers to pour over page after page of invoices in an attempt to identify which accessorial fees are affecting their bottom line on a weekly basis. It’s unmanageable.

Lojistic’s FREE platform gives you instant clarity and insights into your shipping data. Clear, concise, and organized data gives you (the shipper) the ability to identify where you’re overspending and the knowledge to fix it— all for free. The most impactful data for shippers to be aware of are the accessorial fees that drain their profits little by little.  

One of the most common - and painful - accessorial fees for shippers are Address Correction Fees. Let's define what these are. 

What are Address Correction Fees? 

An address correction fee is applied when a shipper enters an incorrect delivery address prompting the carrier to make a correction on their end. This could be as simple as a spelling error, spacing error, or an abbreviation error. If the delivery address you enter does not match the carrier's destination address VERBATIM, you might get dinged with an address correction fee. 

How much does an average Address Correction Fee cost? 

The average cost to the shipper is $18-19 per address correction. In addition to this fee, when an address is corrected, it automatically waives the on-time delivery guarantee. If your package is delivered late or there is a service failure, you (the shipper) are  no longer eligible to receive  a refund for a late shipment. That’s a double hit! The address correction fee alone could result in thousands of wasted dollars - or more! - per quarter depending on your shipping volume.

You can use Lojistic to avoid these fees. Here's how:

Create a free Lojistic account

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Select a date range 

 

Select a Date Range

Check the Cost Reduction Opportunities tab

 

Copy of Select a Date Range

Scroll to  address correction fees and click “download details”.

 

Copy of Copy of Select a Date Range

This report will show you the original address you had on file VS the correction made by the carrier. This gives you all the information you need to update the address in your system, thus eliminating all future address correction fees if you ever ship to the same address again. This can be a BIG money saver if you have repeat customers. 

If you find that the address on the report is correct---you have a case to call your carrier and demand a refund for an “invalid address correction fee”---you might be surprised at how often this occurs.

 Knowledge is power, or so the saying goes. Being aware of where your shipping dollars are going is essential in preventing these unnecessary and avoidable fees. Your shipping data should be free to access and use as leverage in determining where you are overspending. Lojistic gives you the tools to identify these areas and determine the best course of action to mitigate avoidable  costs or eliminate them altogether.  Here's why Lojistic is free to use. And always will be. 

Lojistic automatically ingests, analyzes and organizes your shipping data to give you the power to “address” these areas of overspend and take meaningful action to eliminate them. And it’s all FREE. Forever. Create your free Lojistic account now! 

 

Speak with one of our strategy managers today by emailing us a hello@lojistic.com OR let us know a time that's convenient for you and we'll call you then, just fill out this Contact Us form. 

Our team can help you review your shipping data, then strategize and employ the right solutions to avoid costly  shipping problems now and in the future.

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