How to Protect Premium Goods from Transit Damage and Theft

March 10, 2026 • 6 minute read
Author: Jessica Denbo Smith, Director, US Marketing, UPS

Key Points

• Cargo thefts in North America rose 49% in the first half of 2024 year over year,¹ underscoring the need for shippers to prioritize smart delivery management.
• Right-sized boxes and packing materials help keep fragile goods protected during transit.
• Concealing contents with generic labels or nondescript shipping labels can help deter theft.

Types of Transit Damage and Loss

Premium products like semiconductor chips, telecommunications products, consumer electronics, digital devices and specialized automotive accessories are often fragile, expensive to produce and sometimes available in limited quantities.

Qualities like these make premium goods more susceptible to two main types of risk:

• Physical Damage: Excessive movement, collapsed packaging, moisture, humidity and extreme temperatures can compromise the integrity of premium products.
• Theft: Thieves get smarter and sneakier every day. Cargo thefts during transit and from warehouses in North America rose 49% in the first half of 2024, year over year.¹

For businesses shipping these items, critical decisions about packaging and delivery location can help ensure product safety and customer satisfaction.

“Every touchpoint in the shipping journey matters. Damage or loss can quickly erode customer trust,” says Rohit Bhalla, High Value Goods Strategic Lead, UPS. “A strategic logistics partner can help you protect your products and brand reputation across the entire shipping journey.”

Mitigating risk during transit means that small- and medium-size businesses (SMBs) need to be strategic about packaging, packing materials and partnering with a reliable shipping carrier. UPS can help remove supply chain complexities by guiding SMBs on the best ways to prepare and transport premium goods based on variables like product sensitivity, distribution area/location, testing standards and regulatory considerations.

How to Prevent Freight Damage

A safe journey for premium goods relies on using the right-sized box and packing materials, adhering to proper transit procedures and ensuring compliance and regulatory safeguards are met.

Box Size and Packing Materials

Most premium goods are shipped in standard corrugated boxes, and the right size matters.

“If a box is too large, the product inside can move around. If it’s too small, it can break through the sides or seams of the box,” Bhalla says. “Many businesses overlook this important step, but right-sizing boxes also leads to greater efficiency with shipping costs.”

The right packing materials will help ensure products stay protected and in place during transit. While standard polybags may work for everyday shipments, premium goods usually require more sophisticated options, Bhalla says. “These products are best protected with cushioning, vibration-dampening material and antistatic shielding material.”

Most premium goods shippers are familiar with standard packing options like air-filled plastic sheets, loose fill and corrugated liners, but UPS can also give guidance on sourcing customized foam inserts to prevent movement, moisture, mildew and damage from compression.

Training for Proper Transport

Safely transporting premium goods often requires specialized logistics planning. UPS professionals are trained to follow specific guidelines for loading, stacking and moving premium products. In addition, load bars are fitted into trailers to help prevent products from shifting, moving and compression, and delivery routes are optimized to minimize transfers and touch points.

Meeting Regulations for Safely Shipping Specialized Items

UPS also helps SMBs understand and comply with industry and safety regulations regarding transit, helping them avoid delays, damage and theft. For example, electronic products that contain lithium batteries (classified as “hazardous goods”) must follow specific rules during transport. UPS also guides SMB shippers on the proper ways to label and package these products to withstand drops and excessive movement to mitigate damage.

Safe transport regulations can become even more nuanced and complicated for exported goods, such as computer components, due to U.S. Customs and Border Protection specifications. In addition to having the proper license, classification and labels to ensure items arrive to customers on time and intact, shippers need to be familiar with customs duties, taxes and fees.

Government agency regulations are another consideration. For example, the Federal Communications Commission regulates computer parts for radio frequency emissions.

“Shipping protocols can change, so staying on top of requirements can help SMBs protect their products during transport and avoid fees and shipping delays,” adds Bhalla. “UPS offers guidance on how to best comply with the correct classifications and regulations to smoothly ship products from the business to the customer.”

Technology Helps Ensure Safe Delivery

Technology and innovation can help ensure that high-value items take the safest route to their destination. Once the products are packaged for secure transport, artificial intelligence (AI) and analytics can be used to help predict the best routes to avoid potentially dangerous weather and high-crime-rate areas. Route optimization helps prevent delays and potential loss from package damage or theft.

For example, UPS drivers use a proprietary technology system called On-Road Integrated Optimization and Navigation (referred to as ORION) to efficiently navigate and adapt routes in real time based on road conditions, closures or safety concerns.

Preventing Theft and Tampering with Smart Delivery Management Solutions

Premium goods are prime targets for theft, so Bhalla recommends not labeling packages in a way that reveals premium goods are inside. Shipments left unattended after delivery can also create opportunities for criminals, so UPS provides options for SMBs to schedule deliveries at a specific time; send shipments to a designated UPS Access Point^® or The UPS Store location; or require photo proof of delivery and signature confirmation.

Another tool to help mitigate shipment loss is UPS’s DeliveryDefense^® technology, which leverages AI and machine learning to analyze factors such as delivery location, loss frequency and delivery attempts. The tool then groups customer addresses based on similarities and generates a score reflecting the likelihood of a successful delivery.

Armed with this information, shippers can take action, such as rerouting the package to a secure access point, adjusting delivery requirements or notifying the customer about potential risk for theft.

Insurance Adds Another Layer of Protection

Approximately 72% of SMBs say shipment theft and damage have had a negative impact on customer reviews, and 44% think that insurance could improve purchase intent and increase revenue.

Insurance designed for SMB shipments can help minimize that risk — and increase brand trust with customers. SMBs can customize insurance coverage for shipment size, method of transport and even product type, such as valuable, fragile and time-sensitive goods.

“UPS can help premium goods businesses find the right delivery and management solutions across the entire shipment journey,” Bhalla says. “The competition for premium goods is global, so we help SMBs craft an exceptional experience in every way possible, from packaging and transport to on-time delivery, to help ensure their shipments arrive as intended.”

¹ “High-value shipments at risk: The growing threat of strategic cargo theft,” WTW, accessed October 29, 2025.

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.