By Cassandra Jaramillo
United Parcel Service Inc. said Monday that it agreed to acquire
insured shipping services company Parcel Pro for an undisclosed sum
in a move aimed at increasing its business with the jewelry
industry.
The purchase was made by UPS Capital, a unit of United Parcel
Service. Parcel Pro is an independent logistics company that
services shipments of luxury items like jewelry, wristwatches and
collectibles.
UPS Capital and Parcel Pro said it would insure shipping within
the U.S. for up to $150,000 per package.
The company said the insurance rates are higher than current
industry standards.
Most shipping insurance is limited to $50,000 in the U.S. and
$500 internationally in value per package, UPS said.
Internationally, the companies would insure packages up to
$100,000 for selected countries.
"Many jewelry retailers have insurance policies that cover their
inventory, but shipping losses are not always covered by these
policies," Ronald Chang, president of UPS Capital, said in a news
release.
He added that the acquisition would help UPS Capital's supply
chain by giving customers information on their shipped valuable
goods through Parcel Pro's tracking platforms available on the web
and through mobile phone applications.
In addition, following the acquisition, the companies wouldn't
have to split up shipments, which can lead to higher transportation
and labor costs, UPS said.
Parcel Pro's insured shipping and risk management services
offices are located in Los Angeles, New York, Miami, San Francisco,
Hong Kong and Singapore.
Write to Cassandra Jaramillo at Cassandra.Jaramillo@wsj.com
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