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Rising fuel costs are hitting small businesses with a new wave of shipping expenses, as major carriers pass along higher diesel prices through surcharges many owners say feel like “tariffs 2.0,” The Wall Street Journal writes.
FedEx and UPS have pushed fuel surcharges above 26%, while diesel prices have surged sharply in recent weeks, driving up the cost of moving goods across supply chains.
For e-commerce sellers already grappling with higher import tariffs, the added costs are squeezing margins and forcing tough decisions. Some businesses are raising prices, adjusting free-shipping thresholds or absorbing the hit to stay competitive. Others say even small per-package increases can quickly add up to thousands of dollars each month.
Larger companies often negotiate better rates, but smaller merchants lack that leverage, leaving them especially exposed. As fuel volatility continues, businesses are scrambling to adapt to yet another unpredictable cost pressure reshaping their bottom lines.
