Americans are going to feel the pinch in their wallets, experts warn, after major delivery companies brought in surcharges to offset their fuel costs.
Finance gurus in California revealed the hikes are “unescapable” and will cause “ripples through the supply chain and our pocketbooks.”
Amazon will begin imposing new seller surcharges on April 17, joining UPS, FedEx and USPS, which have added fuel fees to offset rising energy costs since the war in Iran.
Professor Andy Tsay, a supply chain expert at Santa Clara University, told ABC7: “The higher oil prices are affecting shipping and logistics costs — Amazon, UPS, USPS. I don’t think there’s any escape. Mortgage rates are going up.
“Everyone has been talking about affordability since before the presidential election, and the geopolitical situation isn’t making things any better.”
He added: “One way or another, this is going to ripple through the supply chain and through our pocketbooks.”
Even ordering takeout on apps like DoorDash, Uber Eats and Grubhub could see surcharges, according to the experts.
The White House launched a military campaign against Iran over a month ago after the assassination of its head of state, with the Islamic Republic retaliating by bombing air bases in the Middle East and closing the Strait of Hormuz, a key passage controlling much of the world’s oil supply.
The move sent shockwaves through the region and the globe, contributing to rising gas prices — hitting California the hardest, where taxes on fuel were already sky high.
“Transportation costs are a big factor there,” said Dr. Dima Leschinskii, a professor of finance at Menlo College, noting Amazon’s plan to tack a temporary 3.5% fuel surcharge onto its third-party sellers.
Starting April 26, USPS will impose a temporary 8% price increase on select packages, including Priority Mail, due to rising fuel costs.
“Every company involved in logistics has to pay for gas. They either absorb the cost or pass it on to third parties,” she said. “I’m not surprised this is happening — at some point, Amazon will say it cannot absorb all this cost.”
The current national average for gas is $4.12 per gallon, while in California it stands at $5.93 — up roughly a dollar from a month ago, according to AAA.
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