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-   -   Cargo > People?! (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1684396-cargo-people.html)

BiggAW Jun 5, 2015 4:55 pm


Originally Posted by justhere (Post 24920715)
Not to beat a dead horse but they haven't. Individual shippers are very profitable for FedEx and UPS on a per package basis. The network is already in place to move a package. The package doesn't know who tendered it so it costs the same to move any given package. The difference is in revenue and profit and there's a lot of profit from an individual's shipment. You are welcome to disagree so unless you work for FedEx or UPS and have first hand knowledge about this trust me when I tell you that FedEx and UPS are not trying to get rid of individual shippers.

Maybe they've decided that a tiny minority of individual shippers who are willing to pay outrageous prices and generate massive margins are more valuable than actually competing in that market, but either way, they don't compete. USPS is far, far, cheaper.


20 pound package from LA to NYC. FedEx $32.84, USPS $45.67. Again it will vary based on a number of things but that's just one example.
I've always seen USPS being far cheaper.



They only do that if you live within a certain radius of their distribution center that has the item you are ordering. Although they are building more and more distribution centers so it's not hard to live within that radius.
Most of my prime stuff is trucked out of NJ, but sometimes it is shipped 2nd day air from the west coast, so that's simply not the case.

USPS drop shipping is the last mile to the customer's house and has nothing to do with how far they are from the DC.

MikeMpls Jun 5, 2015 5:50 pm


Originally Posted by HDQDD (Post 24922291)
1. Horses don't fly on pax airplanes

Yes, they do. Flying horses is one of KLM's specialties.

justhere Jun 6, 2015 12:22 am


Originally Posted by BiggAW (Post 24925982)
Maybe they've decided that a tiny minority of individual shippers who are willing to pay outrageous prices and generate massive margins are more valuable than actually competing in that market, but either way, they don't compete. USPS is far, far, cheaper.

So what do they do, tell individual shippers who can and who cannot ship? There are so many ways, at least with FedEx, not to pay list price, even as an individual shipper. Clearly you don't work for either company so let's just agree to disagree. You are not going to convince me because I do work for one of these two companies and I know what I'm talking about. And I'm not going to convince you because in your mind you know what you are talking about.

Originally Posted by BiggAW (Post 24925982)
I've always seen USPS being far cheaper.

The first random package I rated showed that you are not as informed as you think you are.


Originally Posted by BiggAW (Post 24925982)
Most of my prime stuff is trucked out of NJ, but sometimes it is shipped 2nd day air from the west coast, so that's simply not the case.

USPS drop shipping is the last mile to the customer's house and has nothing to do with how far they are from the DC.

So you are saying that you order something for 2nd day delivery and sometimes it is shipped from the West Coast, moved through either the FedEx or UPS system, across the country, given to the USPS and still gets delivered to you on the 2nd day?

I know what last mile delivery is. In many cases it does have something to do with where the DC is located. A lot of the 2nd day air shipments don't even move from the origin airport until the morning after the day they are shipped. They are then sorted during the day and arrive in the destination city on the morning of the 2nd day. In general, for those packages to be given to the USPS, sorted, and delivered the same day just doesn't happen. It may happen if your address is served by a city's primary USPS but if Amazon is guaranteeing 2nd day delivery they will either generally have UPS or FedEx complete the delivery or the shipment is coming from a DC that is within about 600 miles and they can get the package to the USPS on the first day. That allows the USPS to sort and distribute to the appropriate local USPS for delivery on the 2nd day.

Felixishim Jun 6, 2015 12:27 am

actually cargo earns way more money then people and bags and stuff since they get to charge per ton. Passenger doesn't make much revenue for international route for an airline the cargo is the Cash King at most time. Full flight of economy flight passenger only contribute a fraction of income on an international flight

kettle1 Jun 6, 2015 1:07 am


Originally Posted by justhere (Post 24920715)
Not to beat a dead horse but they haven't. Individual shippers are very profitable for FedEx and UPS on a per package basis. The network is already in place to move a package. The package doesn't know who tendered it so it costs the same to move any given package. The difference is in revenue and profit and there's a lot of profit from an individual's shipment. You are welcome to disagree so unless you work for FedEx or UPS and have first hand knowledge about this trust me when I tell you that FedEx and UPS are not trying to get rid of individual shippers.



20 pound package from LA to NYC. FedEx $32.84, USPS $45.67. Again it will vary based on a number of things but that's just one example.



FALSE, it depends on the size of the package. USPS will ship a large package (up to 70 lbs) for around $16.00 anywhere in the USA. Anywhere, places UPS and FED EX do not serve (as I have shown up thread) . That is a fact! It it is over sized, I agree or does not fit into a flat rate box (provided free and includes $50.00 insurance and a tracking number). UPS (good) or Fed EX Ground (crap).

Ship some books from LA to NY (or anywhere) who is lower? USPS. MEDIA MAIL!

Ship something to AK or HI? Who is lower? USPS.

I can not believe I am defending the US Post Office.

Send a letter first class mail. It is usually delivered within 3 days for 50 cents. What would UPS or Fed EX charge for that?

Again, I can not believe I am defending the US post office. I could go on and on. I have shipped thousands of packages, filled out customs forms, etc, etc. I know how it works. I have trained many employees how it works. UPS and Fed EX (Ground and Air), are great carriers - so is the USPS, which is lower in price most of the time. Times change.

Have a great weekend! :)

BiggAW Jun 6, 2015 8:19 am


Originally Posted by justhere (Post 24927197)
So what do they do, tell individual shippers who can and who cannot ship?

No. They just make the rate so absurd that individual shippers will go to the USPS, and UPS handles the big deals that they want.


So you are saying that you order something for 2nd day delivery and sometimes it is shipped from the West Coast, moved through either the FedEx or UPS system, across the country, given to the USPS and still gets delivered to you on the 2nd day?
I don't know if I've ever gotten anything shipped transcon and then drop shipped. It may only be stuff from the east coast that's drop shipped. However, even if it's drop shipped the next day, there's no way it will get to me within 2 days, as the literal last mile takes days with the USPS. UPS just delivers it on time, even if it came via air from the other coast.


In general, for those packages to be given to the USPS, sorted, and delivered the same day just doesn't happen. It may happen if your address is served by a city's primary USPS but if Amazon is guaranteeing 2nd day delivery they will either generally have UPS or FedEx complete the delivery or the shipment is coming from a DC that is within about 600 miles and they can get the package to the USPS on the first day.
I've had it happen with stuff from NJ, the Post Office got it and sat on it for a while because that's how the USPS works. And then the USPS is too retarded to actually deliver to an apartment, yet UPS and FedEX delivered to the porch, so then I'd have to go and pick stuff up sometimes. So if they tried to deliver it on day 4 or 5, and I had to go pick it up, it was well north of a week before I ever got my "Prime" package. UPS and FedEX was like clockwork for 2-day delivery to my porch.


Originally Posted by kettle1 (Post 24927289)
Ship some books from LA to NY (or anywhere) who is lower? USPS. MEDIA MAIL!

Ship something to AK or HI? Who is lower? USPS.

I can not believe I am defending the US Post Office.

I know, it's crazy. I generally despise the USPS, but they are the only reasonable option for shipping packages from an individual. Media Mail from Alaska is pretty funny, it's usually just about a month to get to the east coast. A week or three sitting waiting for the barge, a week or so in transit, and another week to get from Seattle to the east coast via truck or rail.

HDQDD Jun 6, 2015 10:34 am


Originally Posted by MikeMpls (Post 24926156)
Yes, they do. Flying horses is one of KLM's specialties.

No, they fly on KLM Cargo flights.

Cargo and Combis are not the same as pax airplanes, which is why I qualified my post by saying *pax* airplanes.

HDQDD Jun 6, 2015 10:53 am


Originally Posted by Felixishim (Post 24927213)
actually cargo earns way more money then people and bags and stuff since they get to charge per ton. Passenger doesn't make much revenue for international route for an airline the cargo is the Cash King at most time. Full flight of economy flight passenger only contribute a fraction of income on an international flight

It generates so much money that it makes up < 2% of (pax) airline revenues! I guess they should stop carrying people and just carry cargo... :rolleyes:

In actuality, the revenues from cargo are only ancillary revenue next to that of carrying peeps. Most of it is carried under contract (read: negotiated pricing). Since they have the space/weight available they have another revenue opportunity. A lot of domestic capacity is filled with US Mail which is marginally profitable at best.

If cargo made as much as people on the internets seem to think, then there wouldn't be (conservatively) 10x the number of pax flights as cargo flights.

Another thing most peeps don't realize is that airlines also move cargo via ground (i.e. truck networks).

sbbutler93 Jun 6, 2015 1:03 pm


Originally Posted by BiggAW (Post 24925982)
I've always seen USPS being far cheaper.

14x14x14, 15lbs, Pittsburgh - Salt Lake City (actual scenario I just did and one you can check for yourself)

USPS Standard Post = $33.88
UPS Ground = $33.27
FedEx Ground = $25.55

And accounts with UPS and FedEx can get you further discounts.

justhere Jun 6, 2015 3:52 pm


Originally Posted by kettle1 (Post 24927289)
FALSE, it depends on the size of the package.

You quoted me saying "it will vary on a number of things" and say that what I posted is false because it depends on the size of the package.

I think the word you were looking for was "TRUE". The rates I posted were directly from the respective companies websites and I qualified what I posted by saying that it depends on a number of things.

Another example was posted for you by sbbutler93.

kettle1 Jun 6, 2015 4:34 pm

From USPS:


Sizes
Inside Dimensions Outside Dimensions
12" x 12" x 5-1/2" 12-1/4" x 12-1/4" x 6"
23-11/16" x 11-3/4" x 3" * 24-1/16" x 11-7/8" x 3-1/8" *

*Packaging is only available online at usps.com/store.
Features

Priority Mail offers 1 day, 2 day, or 3 day service to most domestic destinations. Select Priority Mail Flat Rate Boxes are available at many Post Offices. All packaging can be ordered online at USPS.com/store. This 1-3 day service may include tracking at no additional cost. Priority Mail bearing an IMpb or retail tracking barcode includes $50 of insurance. Priority Mail bearing an IMpb paid at Commercial Plus prices includes $100 of insurance. Additional merchandise insurance up to $5,000 may be purchased for a fee.
Domestic Prices

Priority Mail Flat Rate Boxes are priced low to U.S. destinations, regardless of the actual weight of the piece up to 70 pounds. Customers must use USPS-produced Priority Mail Flat Rate Boxes to qualify for Flat Rate pricing.
Package can weigh up to 70 lbs.
Includes $50 insurance.
Includes tracking number.
Includes free box.
Free pickup at your home/business
Total cost $15.80 (postage purchased online) anywhere in the USA (APO/FPO is even lower).

Fed Ex and UPS do not ship to APO/FPO addresses.

Don't get me wrong, both Fed Ex and UPS are great companies and sometimes have lower prices than the USPS. It depends on a lot of factors.

justhere Jun 6, 2015 7:11 pm


Originally Posted by kettle1 (Post 24929955)
Don't get me wrong, both Fed Ex and UPS are great companies and sometimes have lower prices than the USPS. It depends on a lot of factors.

I wish I had said that......oh wait.

The bottom line is a shipper cannot arbitrarily say that one company is cheaper or more expensive than another. You have to price it out based on what you are sending, how quickly you need it there, whether you want it guaranteed or not, etc, etc.

sethb Jun 7, 2015 3:40 am


Originally Posted by fpmurphy (Post 24910324)
DL2443 ALT-LAX returned to the gate yesterday PM just before takeoff for what the pilot stated on the PA was for "missing catering equipment which was legally required". Got the the gate and the GA called 5 people by name and asked they to come forward. After brief discussion in the jetway, these 5 collected their belongings and deplaned. Cabin door shut and off the LAX we went.

Any idea who they were or why they were removed?

CALMSP Jun 7, 2015 7:26 am


Originally Posted by Felixishim (Post 24927213)
actually cargo earns way more money then people and bags and stuff since they get to charge per ton. Passenger doesn't make much revenue for international route for an airline the cargo is the Cash King at most time. Full flight of economy flight passenger only contribute a fraction of income on an international flight

a common misconception. Not every piece of cargo that flies is making big dollars. Depending on the route, commodity, etc., it may only break even. Same approach that the airline has on a passenger side. You make something available for the overall relationship with a major forwarder.

MikeMpls Jun 7, 2015 12:58 pm


Originally Posted by HDQDD (Post 24928708)
No, they fly on KLM Cargo flights.

Cargo and Combis are not the same as pax airplanes, which is why I qualified my post by saying *pax* airplanes.


*LOL*

With not quite 300 max people (pax & crew) on board, the 747 Combi is very much a passenger aircraft. I've flown on them several times. KLM has 20 that will be in service until 2020.

And I guess this well-known diversion of KLM 685 with 278 people and 15 horses on board must never have happened?

http://www.cnn.com/2005/US/04/11/klm...ref=newssearch


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