UPS Capital, the financial-services arm of Atlanta-based transport and logistics giant UPS Inc., said today it acquired Parcel Pro Inc., a Torrance, Calif.-based logistics provider to the jewelry, wristwatch, and collectibles industries. Terms of the transaction were not disclosed.
The transaction is designed to expand insurance coverage for shippers of such high-value goods, the companies said in a statement. Losses through shipping can sometimes be excluded from policies that will cover the value of inventory, the companies said. In addition, the amount of available shipping coverage may be well below the value of the goods, they added. In the U.S., most shipping insurance is limited to $50,000 of value per package, while internationally the coverage can be capped at $500 of value per package, they said.
As a result, shippers that might otherwise ship multiple items in one package will split the goods into multiple parcels, resulting in higher shipping and labor costs, the companies said.
UPS Capital and Parcel Pro said they will begin offering coverage of up to $150,000 in value per package in the U.S., and up to $100,000 per package for packages shipped to select international destinations. The increased maximums should allow companies to ship more items in one package, which is more convenient and cost effective, the companies said.
UPS Capital said it will offer jewelry and watch retailers an integrated service that covers shipping, insurance, and logistics. Many retailers, especially those based outside the U.S., have traditionally managed those functions on their own, UPS Capital said.
Formed in the late 1990s, UPS Capital provides financial and insurance services to support the parent company's core transport and logistics operations. It has been part of UPS' broad mission to synchronize global commerce by combining the flow of goods, information, and funds.
Founded in 1997, Parcel Pro has locations in New York, Los Angeles, San Francisco, Miami, Hong Kong, Tokyo, and Singapore.