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In some area's, you can call fedex and tell them to hold your delivery at the fedex sort facility in your area. If there is no facility available in your local area, you will get that message. Basically it is say "Sorry we can't hold your package here, it will be delivered to it's destination". That is the explanation I recieved.

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Q: Hold at FedEx Location service is not available for this shipment?
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