UPS Capital’s purchase of Parcel Pro is intended to help global shippers of watches, jewelry and collectibles increase insurance coverage and lower transportation costs.
UPS Capital, the supply chain financial, insurance and payment service subsidiary of the global integrator, on Monday said it has acquired Parcel Pro, a logistics provider to the jewelry, wristwatch and collectibles industries.
“The synergies between UPS Capital and Parcel Pro will greatly benefit customers shipping high-value products,” said Ronald Chang, president of UPS Capital. “The acquisition enhances our supply chain risk mitigation capabilities, providing global logistics expertise and peace of mind to customers who need to ship their valuable goods. Many jewelry retailers have insurance policies that cover their inventory, but shipping losses are not always covered by these policies.”
The market for luxury items has flourished internationally over the past decade, UPS said, while most shipping insurance is limited to $50,000 in the United States and $500 internationally in value per package. This means that companies have to split up shipments, leading to increased transportation and labor costs.
UPS Capital said that by merging its services with those of Parcel Pro, it will be able to insure shipping within the United States for up to $150,000 in value per package and internationally to selected countries for up to $100,000 per package.
The merger is also intended to assist high-value jewelers and watch retailers, who often organize shipping, insurance and logistics on their own.
Parcel Pro’s proprietary technology platform provides online tracking and visibility, e-reporting, web access and shipping, including via smart phone applications. The company has locations in the major jewelry districts of New York, Los Angeles, San Francisco, Miami, Hong Kong, Tokyo and Singapore, as well as armed guard pick-ups and deliveries in New York, Los Angeles and Beverly Hills, Calif.
Financial details of the acquisition were not disclosed.
UPS subsidiary acquires high-value jewelry logistics company
