UPS Capital, the financial services, payments and insurance arm of parcel giant UPS, has acquired the Insured Parcel Services (IPS) business of G4S International Logistics, a second acquisition in this area that will make its services more attractive in the luxury goods market.
Along with its June acquisition of Parcel Pro, UPS is expanding its offering in an area that requires special handling and insurance, the lack of which is a detriment to penetrating the lucrative market.
Dave Zamsky, vice president of marketing for UPS Capital, said IPS was attractive because of its capabilities and geographic reach. Along with Parcel Pro, UPS now has reach with its luxury goods services into 25 markets in Asia, the Middle East and Europe, including Germany, the UK, United Arab Emirates, Japan, Thailand, Singapore and Hong Kong.
“Both companies were the number-one and number-two players in the luxury goods transportation market,” Zamsky said. “What this does for us is position use to be the premier provider of logistics solution and risk mitigation for high-value goods.”
Most shipping insurance is limited to $50,000 for U.S. domestic parcels and $500 for international packages, which means companies have to spend more to split shipments into multiple packages. With Parcel Pro and now IPS, UPS Capital can insure domestic shipments up to $150,000 in value and international shipments up to $100,000.
One capability that IPS brings is an app that provides secure package screening. Customers can use it to automatically replace sensitive address label information that could tip off would-be thieves, such as “diamond” or “jewelry,” making the shipment more anonymous and secure. It can be accessed either by computer or smart device. “That kind automation is very attractive for customers shipping luxury goods,” Zamsky said.
Both acquisitions have closed, and UPS Capital is in the middle of the integration process, he said. Terms were not disclosed.