I've attached a picture of the situation. FedEx shows an ERROR message when a customer moves from ACCOUNT to ADDRESS stage of checkout process. I understand this error is because the customer has not yet entered in information to correct it. Is it possible to either move the location of the shipping options so that a customer is not confronted with an error until after address information has been entered? Or can a message show that address information needs to be entered?

A RED ERROR message is not a good way to keep customers active in a cart while proceeding to checkout. There is a high probability they will exit the cart as soon as an error is shown.