Note
This Blog only covers UPS shipments originating from PRIMUS.
When shipping merchandise to PRIMUS, customers will follow their own
internal processes and policies unless other direction is given by PRIMUS.
Introduction
PRIMUS previously published detailed LTL freight information in DYK #149 Transportation Damage – Required Action. PRIMUS uses LTL carriers, such as Con-way Freight, to ship small sterilizers and large/heavy component crates.
Additionally, PRIMUS uses UPS for all small package shipments unless an alternate method is designated by the customer.
PRIMUS wants all parts customers to fully understand the various UPS shipping categories and the cost differentials depending on which one is selected.
Although very rare, PRIMUS has unfortunately experienced lost or damaged UPS shipments. Recipients need to understand what to do in these cases and how the UPS claims system works.
PRIMUS will always ship UPS Ground unless the customer requests faster delivery. It is important to note that air delivery is between 3 and 7 times more expensive than an equivalent ground shipment.
PRIMUS strongly encourages end users and Authorized Service Agents (ASA) to keep common steam sterilizer parts in local inventory to avoid high-cost emergency shipments.
UPS Shipping Categories
| Same Day | Delivery time provided when order is placed | UPS Express Critical |
| Next Business Day | Delivery as early as 8:00 a.m. | UPS Next Day Air Early A.M. |
| Next Day Business | Delivery typically by 10:30 a.m. | UPS Next Day Air |
| Next Business Day | Delivery typically by 3:00 p.m. | UPS Next Day Air Saver |
| 2 Business Day | Delivery typically by 10:30 a.m. | UPS 2nd Day Air A.M. |
| 2 Business Days | Delivery Typically by end of day | UPS 2nd Day Air |
| 3 Business Days | Delivery typically by end of day | UPS 3 Day Select |
| 1-5 Business Days | Delivery based on distance to destination | UPS Ground |
Cost Differential Example
For a 7-pound shipment from PRIMUS Omaha to San Francisco, the cost for each shipping category is as follows:
UPS Ground $20.98
UPS Second Day Air $56.24
UPS Next Day Air $103.65
UPS Next Day Air Early A.M. $136.80
UPS Liability – Loss or Damage
UPS’s liability for loss or damage is limited to $100 on shipments with no declared value (see discussion below for an explanation of declared value).
If the value of shipped goods exceeds $100, customers can declare a higher value, up to $50,000 per package, by entering the declared value in the UPS shipping system used and paying an additional charge.
Declared Value
Although commonly referred to as “insurance,” UPS actually uses a system called “declared value.”
Declared value is not insurance coverage. The declared value of a package represents UPS’s maximum liability for the package in the case of loss or damage. Again, if no value is declared, UPS’s maximum liability for loss or damage to a package or international shipment is $100.
When PRIMUS ships goods with values exceeding $100, customers can choose to declare a higher value for the goods, up to certain maximum amounts and subject to restrictions, by paying an additional charge.
Note
Beginning June 2014, for shipments with a value > $1,000, PRIMUS
will declare the actual value and charge the UPS fee to the customer.
The Declared Value fee schedule is posted on the PRIMUS website.
Required Packaging
It is important to note that UPS is not liable for loss or damage to a package that is not properly packed to withstand the series of movements through the small package environment.
Note
PRIMUS has worked with its UPS representative to ensure that all
shipments fully meet UPS packaging requirements. Because of this
fact, UPS should not be able to deny any PRIMUS claims due to
packaging.
UPS uses a third-party vendor to manage the claims process for packages with values declared in excess of $100. This vendor adheres to the small package carrier industry standard ISTA 3-A Packaging Guidelines for analyzing the integrity of packaging and associated materials.
Maximum Allowed Declared Value
The maximum value that can be declared varies by the type of shipment:
- $50,000 for a package shipped when a UPS account number is provided or from a location of The UPS Store.
- $5,000 for a package shipped using a credit or debit card as the payment method via UPS Internet Shipping.
- $1,000 for packages returned via UPS Print Return Label, UPS Print and Mail Return Label, Electronic Return Label, or 1 UPS Pickup Attempt, Return Services, and UPS Returns on the Web.
- US$500 for a package shipped at a UPS Drop Box.
- $999 for packages shipped using Shipper Release (authorizing UPS to deliver the package without requiring a signature on delivery).
What to Do If a Package Is Lost or Damaged
If a package is lost or damaged, follow these steps to begin the claims process. It is important to note that under UPS rules, only PRIMUS may file a claim. The recipient of the package cannot file a claim.
Contact PRIMUS to begin the claims process.
In the case of a damaged package, PRIMUS will follow the damaged package claim process. In the case of damage, the recipient must keep all of the packaging materials as they may need to be examined as part of the claims process.
In the case of a lost package, PRIMUS will follow the lost package claim process.
Once UPS has issued a claim, PRIMUS must formally submit claim documentation that serves as a demand for payment on the claim.
- UPS will register the claim upon receipt of the claim documentation and audit the claim for additional information that will impact the package investigation and final processing that will lead to a claim payment or denial.
- On average, this process will be completed within five to 10 business days.
- For domestic shipments, claims must be filed within nine months after delivery of the package. For international shipments, claims must be filed within 60 days.
Proving Merchandise Value
As with any claim, the shipper must prove the value of the merchandise, regardless of the value declared. The declared value is the maximum amount that UPS will pay on a claim (not including shipping charges), subject to proof of the declared value. Documentation must be provided that verifies the replacement or repair cost of the merchandise.
Common Reasons for Claim Denial
Claims may be denied for a number of reasons. Improper or inadequate packaging is one of the more common reasons for a claim denial. Also, once the claim documentation is submitted, additional information may be provided that may lead to locating the package or its contents.
Maximum Amount Paid on a Claim
The amount paid on a claim will be the lowest of the following amounts:
- The cost of repair or replacement of the merchandise up to $100, if there is no value declared in excess of $100.
- The cost of repair or replacement of the merchandise up to the amount of the declared value, if the package had a declared value (as set forth on the UPS shipping document or in the UPS shipping system used, and if the declared value charges have been paid).
Repair or replacement is defined as:
- The purchase price paid for the property
- The actual cost of the damaged or lost property
- The replacement cost of the property at the time and place of loss or damage
- The cost of repairing the damaged property
Have a question or having difficulties? Talk to Dave Schall, our PRIMUS sterilizer expert who is here to assist you anytime at 877.679.7800 extension 1212 or email at dschall@spire-is.com.
Visit us at spire-is.com