Hey that sucks. You might want to call them back and let them know you will tell a fly forum that has 41,000 members, and that can't possibly be good for their business. I'd get all over UPS as well. They have a claims dept. you can get something done through.
Just for the record, I hate UPS with a flaming passion. I got a package last summer they delivered. Have you ever seen the beginning of Ace Ventura Pet Detective? Well that's how my package they delivered looked like it had been treated.