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Consumer & Business Alert
Holiday Stress at DHL, FedEx, & UPS May Mean Delayed Packages

New York, New York, December 16, 2008—

At any time of year, hundreds of thousands of individuals and businesses rely on global shipping carriers like FedEx, UPS, and DHL to deliver packages in an efficient and timely fashion, according to their particular shipping guarantees. If a customer pays for UPS Next Day Air, they expect UPS Next Day Air (especially when the cost for this option is often monumental). Likewise for UPS 2^nd Day Air. This is nothing more and nothing less than what is promised by UPS’ delivery commitment.

But carriers appear to be having a little trouble keeping their promises this holiday season, and the number of shipping delays may become significantly worse in following weeks.

It’s no secret that as Christmas nears, holiday shipping for all major carriers is often overwhelming, and a small army of temporary workers is usually hired to help with the seasonal demand for shipping services. But they have much more to contend with this year than the typical seasonal increase in business; thousands of new customers are making an early transition from DHL to FedEx & UPS, following an announcement that DHL plans to discontinue U.S. domestic air and ground express shipping services by the end of January 2009.

Confusion has followed the announcement, as it remains unclear how reliable DHL service may be until then. Hundreds of DHL drop boxes have been removed from their locations, leaving many customers no option for using DHL shipping services other than traveling to another drop-off location, or switching carriers. Furthermore, DHL has revoked its guarantee of on-time delivery for all packages, according to a service representative at DHL.

Further compounding the difficulty, many businesses are also left wondering what to do with their pre-paid DHL shipping envelopes, purchased in bulk from DHL or from wholesalers such as Costco. DHL customer service representatives have stated that the pre-paid envelopes are still usable through the end of January 2009, and any unused envelopes can be returned and refunded, though customers are advised to do so sooner rather than later.

Michael Kessler, of Kessler International, has already experienced some late deliveries involving critical business documents. Having spoken with two representatives and a supervisor regarding the late air service deliveries, Kessler was told that the carrier is currently unable to keep its on-time commitments. He was also informed that packages may be running 1-3 days behind their scheduled delivery time.

Norman Black, Director of Global Media Relations for UPS, has stated that there are no delays in UPS Air shipments, and that UPS Ground shipments may experience 1-2 day delays in certain channels due to unpredictable package amounts.

The good news is that in most cases, the carriers will refund the shipping charges to the customer if the package is delivered late, but only when asked by the customer for a refund. Unfortunately, this doesn’t compensate for the problems that may arise as a result of the late delivery. Businesses may be shipping and awaiting receipt of important documents or critical items that are under a tight deadline, and many individuals may be waiting for last minute holiday gifts to arrive in time for Christmas. All carriers remove the delivery guarantee the week before Christmas.

Consumers and businesses are urged to ship their holiday packages and documents as early as possible if they can, and to consistently check the tracking of packages as well to ensure delivery. When making online purchases from retailers and selecting shipping options, be sure to research any shipping refund policy that may be posted. Getting a shipping refund for a package delivered later than what was paid for may be more difficult with some retailers, as you are not dealing directly with the carrier.

To avoid the possibility of additional late document deliveries, Kessler International has taken to using an email alternative to circumvent carrier shipping entirely. As a large portion of packages shipped by Kessler is comprised primarily of documentation, it has become a simple matter of using email encryption software to send PDF documents safely, securely, and in a timelier fashion. An email receipt obtained by using an Outlook add-on service such as Read Notify ensures proof of delivery, and is admissible in a court of law if necessary.

Be sure to look for future blog entries of The Kessler Notebook, and The Kessler Report, Kessler International’s newsletter, for more in-depth discussion of the use of encrypted PDF files.

For years, Kessler International has been using its expertise in accounting, computer forensics and corporate fraud to investigate financial and cyber fraud. Established in 1988, Kessler International's satisfied clients are comprised of an extensive and distinguished list of Fortune 500 companies and prestigious law firms worldwide. Its diverse staff includes former prosecutors, former law enforcement agents, attorneys, certified forensic accountants, CPAs, certified internal controls auditors, licensed investigators and researchers.

For more information on forensic accounting, computer forensics, and investment fraud, visit Kessler International’s website at www.investigation.com or call (212) 286-9100.

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