We have ported our site to Magento 2.1.2 and from my best understanding the Magento standard FedEx Shipping Method can not properly handle shipping to both residential and commercial addresses.
In the Magento back end you can select Residential or leave it blank (Commercial). If you check it, it sets the Recipient.Address.Residential field. When residential is set, FedEx returns HomeDelivery rates. When it is not set, it returns Ground rates. These rates are not the same. Home Delivery costs more. So if I don't check it I will undercharge residential customers and if I do check it I will over charge commercial customers.
Is there a work around ? Is there a 3rd party shipping extension that handles this?
What the module should do is perform an address check, and based on what kind of address it is, show Commercial or Residential rates. The way the current module handles also has problems because there is only one "Free Shipping Method" so you can not choose Ground and Home Delivery.
I see that this question was asked in Dec-2016 (about Magento 1.9) but no one answered.