AssetID: 56102658
Headline: UNCAPTIONED: US Retailers Face Record Holiday Delivery Costs as Diesel Prices Rise
Caption: US Retailers Face Record Holiday Delivery Costs as Diesel Prices Rise. US retailers are facing record delivery costs ahead of the 2026 holiday shopping season, as rising diesel prices and higher fuel surcharges increase the cost of shipping packages. Ground delivery prices are forecast to rise by 5.8% year on year in the fourth quarter, while express delivery prices are expected to increase by 13.8%. The US average diesel price reached $6.28 per gallon on October 19, up 65% since US and Israeli attacks on Iran began in February, according to the US Energy Information Administration. However, higher fuel prices account for less than 30% of fuel surcharge costs, with changes to delivery companies’ pricing calculations also contributing to the increases. At the current diesel price, UPS applies a fuel surcharge of 29.5%, while FedEx charges 29%, according to an analysis of the companies’ published rates. Alternative delivery providers are attracting retailers seeking to reduce shipping expenses, although some smaller carriers have also introduced substantial fuel surcharges. The US Postal Service applies an 8% fuel surcharge to most packages, while Amazon introduced a 3.5% fuel and logistics-related surcharge on sellers’ fulfilment fees in April. Despite these alternatives, switching delivery providers could reduce volume discounts and complicate logistics, making it difficult for retailers to lower costs ahead of the holiday season. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,delivery,shipping,costs,retailers,UPS,Fedex,Amazon,alternatives,war,Iran,prices,oil,diesel,logistics,holiday season,peak,shopping,surcharges
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