a shipment exception occurred A shipment exception occurred means that an unexpected issue has delayed the delivery of a package. This could include weather problems, address errors, customs holds, or mechanical issues in transit. Carriers like UPS, FedEx, and USPS use this term in tracking to signal interruptions in the delivery timeline. Customers should monitor updates or contact the shipping carrier for resolution. While not all exceptions cause significant delays, they typically require manual handling or customer action.