Parcel post and Media Mail are trucked, and I don't much about that, but I know most of it is contracted out to various trucking companies. If Amtrak was to ever get back into carrying mail, it would undoubtedly be FCM, just like the airlines handle. FCM is easily handled with all other baggage on passenger airliners and I see no reason why this couldn't be the same for trains. It's basically used as filler in the baggage compartments. I don't think Amtrak should ever get into hauling parcel post or anything very cargo related, but I can see an opportunity for short to medium distance (i.e. NY to Chicago, Boston to DC, NYC to FL, etc) hauls if there is routinely excess space in baggage cars.
Right on all counts.
And I'm surprised that teh Airlines, which have become so preoccupied with weight/fuel costs haven't differed to Amtrak yet.
When I worked for JetBlue, I was told that the airline was bringing in a sizable amount of money on mail and cargo contracts, which includes their new
cargo program. I don't know what percentage of that was mail, and we didn't handle any mail/cargo where I worked. I believe one quarter I heard that mail and cargo revenue helped push the company into profitability for that quarter. So I don't think airlines are anxious to give up that revenue at all.
Two years ago, when I was still in college, I took an economics of transportation course. We looked at, among many other things, the start of the airline industry in the US, and mail contracts were offered to airlines almost as an explicit subsidy to assist the growth of such carriers. Of course now that's no longer the case, but mail contracts do represent a nice, reliable stream of income for many air carriers.
Mail contracts up here are big money and still hit the news occasionally, since they are often the lifeblood of some of the smaller airlines serving some of the remote villages that can't even be reached by any other means of transportation (some can be reached by a week-long boat journey--in the summer--and others are completely isolated). Without the mail contracts, these airlines couldn't afford to fly to these villages, since regardless of how much it needs air service, a village of 200 or even 2,000 can't profitably sustain an airline operation. Even Alaska Airlines relies on the mail contracts to help pay for flights to places like Nome, Kotzebue, and Adak, which are otherwise not profitable even at $300-$500 each way (and these are 500-1000 mile flights, so compare that to your 4,000-mile transcon which you can get for $100!).
It hit the news recently, too, because of changes in the "bypass mail" program, which allows people to basically load cargo directly on an airline but only pay USPS federally-mandated rates (in effect, "bypassing" the USPS's sorting and distribution centers). The USPS coughs up the difference, in effect subsidizing an airline's cargo operation. It's always a bone of contention on the part of the USPS because it's a monetary black hole, but it's federal law and in the USPS charter that the USPS must serve every community in the U.S. (no matter how remote). So thank you all for helping to pay for somebody's pallet of refried beans from Costco to be shipped to Pepe's North of the Border in Barrow! :lol:
Has anyone used Amtrak's express shipping? They handle small packages up to 50 lbs and even pallets up to 500 lbs (even human remains). Where are such packages stowed? And what are the rates like compared to shipping USPS? I would hope that since it's station to station it would be cheaper.
A few of us did an analysis of shipping costs awhile back in an older thread. You may be able to find it if you search (if the built-in search doesn't do it for you, try going to Google and typing "site:discuss.amtraktrains.com amtrak shipping usps" or something like that.
Memory's a bit fuzzy, but for a cross-country shipment, I think the cheapest was USPS Media Mail (since, IIRC, it's a flat rate regardless of the distance equivalent to a one-zone USPS Parcel Post shipment), followed by USPS Parcel Post, then Amtrak Express, then FedEx Ground, UPS Ground, USPS Priority Mail, and then the more expensive options (Express Mail, FedEx 2-day/1-day, UPS, etc.).
Basically, it wasn't the cheapest--Parcel Post was--but it was cheaper than the faster options, so it may strike a good balance between speed and cost.