3rd Feb 2011, 17:11
I was looking at cargo/freight rates in Alaska and I was wondering how they make any money up there as their rates seem to be bare bones commodity rates. Example, 77 cents a pound to fly a distance of 330 sm. Are they flying fully loaded B737ís? Fedex and UPS offer their overnight services on similar routes and are charging $6-8 a pound. With such a price discrepancy do people just go to the airport to pickup their own freight?
Da Do Ron Ron
4th Feb 2011, 13:01
That's the difference between Door to Door and Airport to Airport.
77c a pound will get you to destination airport, you have to add to this the departure and arrival airport handling charges, various fuel & security surcharges then go queue and collect your freight. If the arriving freight is from a non US origin point add your customs clearance charges on top.
FedEx & UPS collect it at origin and deliver to your door for an all inclusive rate...
4th Feb 2011, 15:44
There isn't an apple's to apple's comparison here. Within the state of Alaska the carriers charge the freight rate to the customer and the Postal Service pays the carrier the First Class mail rate. This is called By-Pass Mail.
This is how it used to work anyway but regardless of the mechanics of the system freight, or what we call freight, is usually mail and is subsidized by the Federal government.
....and is subsidized by the Federal government.
26th Feb 2011, 03:30
Discovery channel: Flying Wild Alaska. Groceries delivered by aircraft.
I did naively wonder as to the business model that kept the operation in the black and the groceries affordable. Tax dollars I suppose is the only thing that balances the equation for the operator and consumer.