Guide to Carrier Shipment Delivery Exceptions

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Last updated on February 11, 2025

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Delivery exceptions are an unavoidable part of e-commerce order fulfillment. They occur when a shipment faces an unexpected delay or interruption during transit, potentially impacting its estimated arrival time. Understanding what causes delivery exceptions, how long they typically last, and what merchants and customers can each do about them can make the process less frustrating for everyone involved.

What Are Shipment Delivery Exceptions?

A delivery exception is when a shipment encounters an unexpected or unavoidable issue or event that disrupts its journey to the final destination (delivery address). The problems can result in late delivery, rerouting, or even the return of a shipment to the sender. The duration of a delivery exception varies depending on the cause. For instance:

  • Weather-related exceptions might delay deliveries for a day or two until conditions improve.
  • Customs inspections for international shipments can last from hours to weeks, depending on the documentation, regulations, origin, and destination countries.
  • Address issues usually take 1-3 days to resolve once the corrected information is provided to the carrier.

While delivery exceptions can be inconvenient, they are most often temporary disruptions that carriers work to resolve as quickly as possible. However, packages are sometimes lost or damaged in transit and never arrive at their intended destination.

Common Types of Shipment Delivery Exceptions

The main categories of delivery exceptions, along with an explanation of each:

  1. Address and Label Issues
    Damaged, illegible, or incorrect labels can prevent packages from reaching their destination. If the correct information is provided promptly, these issues are often resolved within a day or two. If not resolved, these shipments may become “lost” (see #7 below for more information).
  2. Weather and Natural Events
    Severe weather like hurricanes, snowstorms, or floods can disrupt carrier operations. Delays often persist until the affected routes are cleared and safe for travel.
  3. Customs Delays
    International shipments frequently encounter delays due to incomplete or missing paperwork or regulatory requirements. Depending on the issue, this may take a few hours to several weeks to resolve. Often, these packages are returned to the sender to be fixed and re-shipped at the shipper’s expense.
  4. Recipient Unavailability
    When a package requires delivery confirmation service such as a signature or in-person delivery and no one is available, carriers usually attempt redelivery the next business day. Another form of unavailability is a driver who arrives at a commercial address after the building has been closed for the day. If delivery is repeatedly unsuccessful, the package may be held at a local facility for pickup, but it will eventually be returned to the sender or destroyed.
  5. Security and Compliance Issues
    Hazardous materials and restricted goods require additional identification or paperwork and, thus, scrutiny. Incorrect or missing stickers and shipping labels can cause delays that vary widely, depending on the situation.
  6. Operational Disruptions
    Holidays, equipment malfunctions, or facility closures can temporarily impact processing times. These exceptions usually resolve within a few days as operations return to normal.
  7. Lost Package
    Damaged or incorrect shipping labels can lead to misrouting. Particularly small parcels may be overlooked or accidentally mixed with other shipments. Excessive handling (too many touches) as packages move through various facilities can lead to loss. And though less common, theft during transit can be the source of the “lost” package.
  8. Damaged in Transit
    Inadequate packaging (poor-quality materials) or insufficient cushioning to protect the contents can cause damage in transit. Oversized boxes (too much air) allow items to move around and potentially break. Rough treatment or improper stacking/storage by carrier staff or automated processing equipment during sorting, loading, or delivery can also result in damages.

Why Delivery Exceptions Matter

From late birthday gifts to cocktail dresses that didn’t arrive by New Year’s Eve, delivery exceptions can create grief for both merchants and customers.

  • Customers: Delays are frustrating, particularly for time-sensitive shipments. Clear communication about exceptions can help reduce frustration and maintain trust.
  • Merchants: Exceptions can lead to increased costs and/or loss of revenue from refunds, reshipments, or additional customer service demands. Poor customer service, and by extension, poor handling of exceptions or repeated, frequent exceptions, may damage a brand’s reputation and/or lead to losing future business from a customer.

    Technologies that provide timely visibility of delivery exceptions can help merchants avoid the issues by providing proactive customer service, demonstrating to customers that they value the business and relationship.

I really like the [Cahoot] Shipment Insights feature that lets me see any problems before the customer knows. We’ve saved thousands of dollars over the last 6 months, and my customers are delighted I can offer the same nationwide shipping as Amazon. Cahoot definitely under-promises and over-delivers. Call these guys!


~ Sam Krausz, Fastest Handling Time


How Carriers Handle Exceptions

Carriers each have their unique processes for managing exceptions. Here’s a quick overview:

  • FedEx: Uses real-time tracking updates and typically attempts redelivery on the next business day. For major disruptions, packages may be redirected to a local pickup point.
  • UPS: Provides detailed exception codes that explain the issue, such as “Action Required” for shipper intervention. Redelivery attempts are common.
  • DHL: Focuses more on international shipments than domestic and provides specific updates for customs delays or other issues. DHL works closely with customs to expedite resolution.
  • USPS: Handles exceptions like “Held at Post Office” or “Processing Exception” by allowing customers to schedule redelivery or pick up packages from a local facility.

20 Common Delivery Exceptions and How to Address Them

Exception
Description
Merchant Actions
Customer Actions
Address Not Found
Delivery address is invalid or incomplete.
Verify and update the address; resend the shipment.
Confirm the shipping address with the merchant or carrier.
Label Damage
Shipping label is damaged or unreadable.
Reprint and resend shipment. Work with the carrier to fix the existing package in transit.
Contact the carrier to help route the package with a fresh label, or contact the merchant to reship it.
Weather Delay
Severe weather impacts delivery routes.
Notify customers proactively about delays.
Monitor tracking updates.
Customs Delay
Package is held at customs for inspection.
Ensure all documentation is accurate. Reship if needed.
Contact local customs for updates and to supply any missing information: (877) 227-5511
Recipient Unavailable
Recipient not present to accept delivery.
Notify the customer to arrange pickup or redelivery.
Schedule redelivery or visit the local facility where the package is held.
Security Inspection
Package flagged for additional screening.
Provide necessary documentation promptly.
Await carrier resolution.
Holiday Closure
Carrier facilities close during holidays.
Adjust shipping timelines to deliver by the promised date.
Place orders with sufficient transit times; upgrade shipping speed for time-sensitive orders.
Peak Volume Delay
High package volume delays processing.
Diversify carrier partnerships for flexibility.
Place orders with sufficient transit times; be patient during peak times.
Damaged in Transit
Shipment damaged in transit.
File claim with carrier and resend order.
Contact merchant for resolution.
Lost Package
Shipment lost in transit.
File claim with carrier and resend order.
Contact merchant for resolution.
Package Misrouting
Package was sent to the wrong location.
Contact carrier for rerouting assistance. Contact the customer to ship a new order.
Monitor tracking updates and inform the carrier of issues, or contact the merchant to ship a new order.
Equipment Failure
Carrier equipment issues delay processing.
Collaborate with carrier to minimize disruption.
Monitor tracking updates. Contact the merchant to ship a new order.
Insufficient Address
Missing critical delivery details.
Verify and update the address; resend the shipment.
Confirm the shipping details with the merchant or carrier.
Delivery Refused
Recipient declined the shipment.
Clarify or correct issues with the customer and resend if applicable.
Contact the merchant to resolve the issue.
Excess Package Weight
Package too heavy for standard delivery.
Offer alternate shipping options.
Arrange for pickup at the local facility.
Oversize Package
Shipment exceeds standard size limits.
Repackage and ship using appropriate methods.
Follow carrier instructions for pickup.
Returned to Sender
Package undeliverable and sent back to the shipper.
Investigate the cause and resolve for future shipments.
Monitor merchant updates.
Processing Exception
Carrier faced issues while handling the package.
Communicate with the carrier for clarity and next steps.
Monitor tracking updates.
Delivery Location Restricted
Access to delivery address is restricted (e.g., gated community).
Contact the recipient for alternative instructions.
Provide updated delivery instructions.
Payment Required
Customs or additional fees must be paid.
Inform the recipient about any charges due.
Pay fees to release the shipment.

Summary

While delivery exceptions will remain an inherent challenge in e-commerce logistics, understanding their causes and employing proactive strategies can mitigate their impact. Merchants who develop comprehensive exception management protocols, maintain strong carrier relationships, and prioritize customer communication are better positioned to maintain customer satisfaction despite shipping disruptions. Customers who are careful to clearly and accurately enter shipping addresses, articulate address access concerns, and upgrade shipping speed for time-sensitive orders will reduce the likelihood of delivery exceptions that lead to delays. And as carrier technology evolves, exception handling will continue being refined, enhancing the delivery experience for merchants and customers alike.

Frequently Asked Questions

1. What is a shipment delivery exception, and does it always mean my package will be late?

A delivery exception occurs when something unexpected interrupts a package’s normal transit, such as weather issues, customs delays, or address problems. However, this doesn’t always mean your package will be late. Sometimes, carriers can resolve the issue quickly and still deliver on time.


2. What should I do if my package is delayed due to weather?

Unfortunately, weather delays are out of everyone’s control. Monitor the tracking updates and be patient, as carriers prioritize the safety of their employees. If the delay seems unusually long, contact the carrier for an update or alternate options, such as intercepting the shipment and upgrading the delivery service.


3. Why did my package get held at customs, and how long could it stay there?

Customs holds usually happen because of incomplete documentation, incorrect tariff codes, incomplete descriptions, or a need for inspection. How long it stays depends on the issue; sometimes a few hours, sometimes weeks. To avoid this delivery exception, ensure all paperwork is complete and accurate when shipping internationally.


4. What does ‘address not found’ mean, and how can I fix it?

It means the carrier couldn’t find the delivery location due to an error in the address provided, such as a missing apartment number or incorrect postal code (make sure the tools used to create shipping labels aren’t trimming leading zeros from zip codes). You can resolve it by contacting the carrier or sender to provide the correct details.


5. What happens if I miss a delivery that requires a signature?

When no one is available to sign, the carrier typically leaves a notice and may try delivering the package again the next business day. Alternatively, you might need to pick it up from a nearby facility or arrange for redelivery through the carrier’s website. Don’t delay contacting the carrier about your package…most carriers will only hold a package for several days before destroying it.


6. Why has my package been ‘in transit’ for so long?

“In transit” means your package is on the move but hasn’t reached its final destination. Tracking updates often provides clues about the delay. But if it stays in transit for an extended period, it could be due to carrier processing or equipment malfunctions, inclement weather or natural disasters, route changes, or loss or damage. The carrier will assess the situation before updating the last tracking event.


7. What should I do if my package is marked ‘undeliverable’ or ‘returned to sender’?

This usually happens due to an incomplete address, a refusal by the recipient, or failed delivery attempt(s). Contact the sender or carrier to understand why the package was undeliverable and arrange for it to be re-shipped.


8. How do I address exceptions caused by incorrect labels or damaged barcodes?

Damaged labels or barcodes can delay delivery since carriers rely on these for routing. Merchants should use high-quality labels and double-check accuracy and quality before shipping. If this happens to your package, contact the carrier to help route it with a fresh label or contact the merchant to reship it.


9. What does ‘processing exception’ mean on my tracking updates?

A processing exception indicates that the carrier encountered an issue while handling the package, such as equipment malfunctions or unexpected sorting delays. Typically, carriers resolve these issues automatically within a few days but contacting them may speed things up.


10. Can I avoid shipment exceptions during peak holiday seasons?

While shipment exceptions during holidays can’t be entirely avoided, you can reduce the likelihood by ordering early, providing accurate shipping details, and choosing carriers known for reliable service during peak times. Merchants can also distribute inventory to strategically located regions to shorten delivery routes by eliminating transit days.

Written By:


Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

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