Understanding Shipment Exceptions: Causes, Types and How to Handle Them

Introduction

For eCommerce businesses and online shoppers alike, timely delivery is crucial. As an online merchant, meeting customer expectations for fast, reliable shipping is a top priority. However, even with careful planning and execution, unexpected delays can occur during the shipping process. When these delays happen, they are often classified as "shipment exceptions" or "delivery exceptions" by carriers.

In this comprehensive guide, we'll explore what shipment exceptions mean, why they occur, the different types you may encounter, and most importantly - how to handle them effectively to maintain positive customer relationships. We'll also look at how FreightAmigo's digital logistics platform can help streamline your shipping processes and minimize disruptions.

What is a Shipment Exception?

A shipment exception, also known as a delivery exception, occurs when an unexpected event impacts a package's estimated delivery date. Essentially, it's a notification that alerts both the sender and recipient that the shipment has encountered an issue during transit.

It's important to note that not all shipment exceptions result in delayed deliveries. In some cases, carriers can resolve the issue quickly enough for the package to still arrive on time. However, exceptions do indicate that there has been a disruption in the normal shipping process that could potentially affect the delivery timeline.

Common Causes of Shipment Exceptions

While sophisticated logistics technology has improved shipping reliability, various factors can still lead to exceptions. Here are some of the most common reasons:

1. Incorrect or Incomplete Address Information

One of the leading causes of shipment exceptions is inaccurate or incomplete address details. Even a small error, such as a wrong digit in the zip code or an incorrect apartment number, can result in delivery issues. Carriers may return packages with incorrect addresses to the dispatch station or sender, leading to significant delays.

2. Customs Delays for International Shipments

For businesses engaged in cross-border eCommerce, customs-related delays are a frequent source of exceptions. These can occur due to missing or incorrect documentation, issues with harmonized codes, or routine inspections that take longer than anticipated.

3. Adverse Weather Conditions

Severe weather events like hurricanes, blizzards, floods, or wildfires can render delivery routes impassable, causing significant delays. While carriers plan for seasonal weather patterns, extreme or unexpected conditions can still lead to exceptions.

4. Holiday-Related Volume Increases

During peak shopping seasons, particularly around major holidays, the sheer volume of packages can overwhelm carrier systems and lead to exceptions. This is especially common during the year-end holiday rush.

5. Damaged or Missing Labels

If a shipping label becomes damaged or detaches from a package during transit, it can cause delays as carriers struggle to identify the correct destination or scan the package properly.

6. Recipient Unavailability

For shipments that require a signature upon delivery, the absence of someone to receive and sign for the package can result in an exception. In most cases, the carrier will attempt redelivery the following business day.

7. Federal Holidays

Deliveries scheduled for federal holidays when most carrier services are not operational can trigger exceptions, as the package will need to be held until the next business day.

Types of Shipment Exceptions by Major Carriers

Different carriers may use varying terminology to describe shipment exceptions. Let's look at how some major carriers classify and communicate these issues:

FedEx Shipment Exceptions

FedEx defines an exception as a temporary delay while a package is in transit. Common reasons for FedEx exceptions include:

• Customs delays
• Holiday-related issues
• Missing documentation
• Recipient not available to accept delivery

FedEx may use the code "PMX" to indicate that a shipment couldn't be delivered during the normal route and has been returned to a delivery station for redelivery the next day.

USPS Shipment Exceptions

The United States Postal Service commonly cites incorrect addresses and holidays as reasons for delivery exceptions. When tracking a USPS package, an exception notice will appear if there's been a delay.

UPS Shipment Exceptions

UPS describes a delivery exception as an unforeseen event that could change the expected delivery day. They use specific language to denote different types of exceptions, such as:

• "Address unknown"
• "Damage to shipment"
• "Signature not received"

UPS customers can view exception notices when logging into their courier account or tracking a package.

DHL Shipment Exceptions

DHL typically uses the phrase "Your DHL shipment is on hold" to indicate a shipment exception. This usually implies a delay that should be resolved within a week.

How to Handle Shipment Exceptions

While exceptions can be frustrating for both merchants and customers, having a clear strategy for addressing them can help minimize negative impacts. Here are some steps to take when you encounter a shipment exception:

1. Contact the Carrier Immediately

As soon as you become aware of an exception, reach out to the carrier for more information. Ask about the specific nature of the problem and what solutions are available. Many issues can be resolved quickly with prompt communication.

2. Communicate with the Customer

Transparency is key in maintaining customer trust. Inform the customer about the exception, explain the cause if known, and provide an updated estimated delivery date if possible. If the exception is due to an incorrect address, work with the customer to verify and correct the information.

3. Consider Resending or Refunding

In cases where the exception has resulted in significant delays or the package cannot be delivered, you may need to consider resending the item or issuing a refund. Having a clear policy on how to handle these situations can help you make quick decisions.

4. Learn and Improve

Use each exception as a learning opportunity. Analyze the cause and consider if there are steps you can take to prevent similar issues in the future. This might involve improving your address verification process, adjusting packaging methods, or reconsidering your choice of carriers for certain routes.

Preventing Shipment Exceptions

While some exceptions are unavoidable, many can be prevented with careful planning and the right tools. Here are some strategies to minimize the occurrence of shipment exceptions:

1. Verify Addresses

Implement a robust address verification system to catch errors before shipments go out. This can significantly reduce exceptions due to incorrect or incomplete address information.

2. Use Clear, Durable Labels

Invest in high-quality shipping labels and ensure they are securely attached to packages. This can help prevent issues related to damaged or missing labels.

3. Plan for Peak Seasons

During busy shipping periods, consider building in extra time for deliveries and communicating realistic expectations to customers.

4. Provide Accurate Package Information

Ensure that all package details, including weight and dimensions, are accurate. This helps carriers plan appropriately and reduces the risk of delays due to discrepancies.

5. Stay Informed About Holidays and Weather

Keep track of federal holidays and major weather events that might impact shipping in your frequently served areas. Adjust shipping estimates accordingly and communicate potential delays to customers in advance.

How FreightAmigo Can Help Manage Shipment Exceptions

As a comprehensive digital logistics platform, FreightAmigo offers several features that can help eCommerce businesses better manage and minimize shipment exceptions:

1. Real-Time Tracking

FreightAmigo's platform provides real-time tracking for shipments across multiple carriers. This allows you to quickly identify when an exception occurs and take prompt action.

2. Automated Notifications

Our system can automatically alert you to potential issues, such as address discrepancies or customs holds, before they become full-fledged exceptions. This proactive approach allows you to address problems early in the shipping process.

3. Carrier Comparison and Selection

By offering a wide range of carrier options and allowing you to compare rates and delivery times, FreightAmigo helps you choose the most reliable shipping method for each package, potentially reducing the risk of exceptions.

4. Streamlined Documentation

For international shipments, our platform simplifies the process of generating accurate customs documentation, helping to prevent delays at border crossings.

5. Customer Communication Tools

FreightAmigo provides tools to help you keep customers informed about their shipments, including automated updates and easy-to-use interfaces for communicating about exceptions when they do occur.

Conclusion

Shipment exceptions are an unavoidable reality in the world of eCommerce and logistics. However, understanding what they are, why they occur, and how to handle them effectively can significantly reduce their impact on your business and customer satisfaction.

By implementing preventive measures, maintaining clear communication with both carriers and customers, and leveraging powerful digital logistics tools like FreightAmigo, you can navigate shipment exceptions with confidence. Remember, the goal is not just to resolve exceptions quickly when they occur, but to create a robust shipping process that minimizes their occurrence in the first place.

In today's fast-paced eCommerce environment, efficient logistics management is more than just a operational necessity—it's a competitive advantage. By mastering the handling of shipment exceptions, you're not just solving problems; you're building a reputation for reliability and customer care that can set your business apart in a crowded marketplace.