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  Volume: XX, Issue No. 02 September 1-15, 2010  
     
 
  CARGO & SHIPPING
  UPS takes on airline baggage with 'luggage box'

_A Monitor Report
New York : UPS has launched the most aggressive campaign to date by an express operator to promote "alternatives" to domestic airline baggage carriage, un-veiling a "luggage box" through which passengers can ship bags in advance of flying rather than checking them at the airport.

The delivery player long has counted airline passengers' shipped baggage as a small part of its business. But it never directly promoted it as a service and most bags actually are shipped through UPS via niche businesses that offer door-to-door baggage handling and essentially act as freight forwarders for passenger bags.

However, UPS said in a statement that an increasing number of customers have been shipping luggage, particularly items such as skis and golf clubs, since airlines started charging for checked bags, prompting it to offer a tailored service.

It said it is offering two sizes of luggage boxes shaped like standard suitcases at select UPS Store locations throughout the US. According to the delivery giant, the boxes have "a sturdy handle for easy carrying and [are] made of recyclable corrugate. Because it weighs less than an empty suitcase, packing directly into the box can help lower shipping costs. Travellers also can include packaging tape and a return UPS shipping label for use when returning home."

The company said that when shipped via its UPS Ground service, "the luggage box is competitively priced with the airlines' baggage fee." It noted, however, that those using "a less expensive shipping option like UPS Ground" should plan ahead as the service option is not generally overnight.

UPS touted its tracking capabilities and noted that customers will be able to get e-mail updates on the location of their luggage. While pushing the luggage box as an option for domestic travel, the company "does not recommend shipping luggage internationally? [ow-ing to] the duties and taxes associated with international shipments."

It also warned that those shipping luggage through UPS's ex-press air network are subject to the same FAA restrictions as traditional airfreight and cannot include in their baggage "hazardous materials including colognes and perfumes, aerosol sprays, nail polish and cigarette lighters."

According to US Dept. of Transportation statistics, US airlines generated US$769 million in revenue from baggage fees in the first quarter, up 33 per cent year-over-year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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