Parcel Pro was formed to meet the insured shipping needs of the jewelry and wristwatch industry.
UPS Capital is a branch of UPS which specializes in financing and insurance and is in a unique position to help protect companies from and leverage cash in their supply chains.
In the last decade the demand for luxury items has increased and the value has gone up as well. Formerly, business shipping insurance has been limited to $50,000 in the US and $500 internationally. Companies have had to divide their shipments in order to get increased coverage, but that increases packing and shipping costs.
With their combined resources, UPS Capital and Parcel Pro can increase business shipping insurance coverage to $150,000 in the US and $100,000 internationally.
In a release announcing the acquisition, President of UPS Capital Ronald Chang explains:
Small Business Deals
“The synergies between UPS Capital and Parcel Pro will greatly benefit customers shipping high-value products. 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.”
Chief executive officer of Parcel Pro Joseph Lam adds:
“Parcel Pro’s mission is to provide the most affordable, reliable, secure and convenient services for our industry customers to ship and insure valuable goods. We believe that the acquisition by UPS Capital supports our mission and will only benefit our customers, as well as UPS Capital customers who ship high-value items,” said , . “Our customers will continue to receive best-in-class service and protection for in-transit goods, and also have access to the greatly expanded capabilities, financial strength and stability that come with UPS and UPS Capital.”
Price and closing date have not yet been disclosed.
Customers will continue to receive service as usual. The changes anticipated are to extend the range of services to include better logistics in expanding the small business in their shipping needs.
No changes in executives or other employees are anticipated at this time.
UPS Van Photo via Shutterstock