""Transportation costs are a big factor there. Every company that is involved and has logistics and they have to pay for gas, either they have to absorb this cost, or they will charge the third party that will provide this service. I'm not surprised this is happening, because at some point, Amazon will say we cannot absorb all this cost.""
""One way or another, this is going to ripple through the supply chain and ripple through our pocketbooks.""
""It's $137 dollars. That's significant," said Jill from Pleasant Hill. That's how much it cost her to gas up on Sunday."
""That's crazy," said Stevie, a driver from San Francisco. "It's going to slow people down from ordering stuff. Most definitely because you are already paying other costs on top of it.""
Fuel prices have surged due to the ongoing war in Iran, impacting delivery costs for consumers. Starting April 17, Amazon will implement a 3.5% fuel surcharge on third-party sellers. UPS, FedEx, and USPS are also raising prices to offset these costs, with USPS introducing an 8% increase on certain packages from April 26. The closure of the Strait of Hormuz has exacerbated the situation, leading to higher gasoline prices and affecting logistics across the supply chain.
Read at ABC7 San Francisco
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