Fuel, Freight and Tariff Costs Complicate Holiday Importing

Retailers and other importers are bringing in holiday inventory during what is traditionally the busiest period for ocean and truck shipments, but this year’s peak season is being disrupted by rising transportation expenses. Late July data from DAT Freight and Analytics shows fuel costs up about 31% year over year, with van rates climbing 29% and flatbed rates up 34.7%.

The cost increases are tied partly to higher fuel prices linked to the ongoing conflict in the Middle East, as well as a persistent shortage of trucking capacity. Steve Blough, chief supply chain strategist at Infios, said capacity constraints are making it harder to move goods efficiently, and higher fuel costs may soon spill into ocean container rates.

Importers have also been adjusting to the latest round of tariffs that took effect at the end of July, which prompted many brands to accelerate their shipping schedules. That pull-forward has added to demand for freight services during the summer months, further tightening capacity.

There is no easy solution for shippers, Blough noted, as the combination of tariffs, fuel surcharges and limited trucking availability leaves little room to absorb additional costs. Retailers that locked in rates earlier may have some buffer, but those relying on spot market pricing face the most exposure.