Rising fuel costs caused by the war in Iran are causing consumers to be hit with additional charges, from online delivery costs to airline baggage fees.
Amazon earlier this month said it will apply a 3.5% “fuel and logistics-related surcharge” fee to third-party sellers starting on April 17.
“Elevated costs in fulfillment and logistics have increased the cost of operating across the industry,” Amazon wrote, according to CNBC. “We have absorbed these increased costs so far. However, similar to other major carriers, when costs remain elevated, we implement temporary surcharges on our fulfillment fees to recover a portion of the actual cost increases we are experiencing.”
Other companies are imposing fees to handle higher fuel costs caused by soaring oil prices.
The U.S. Postal Service said in late March it would impose a temporary 8% price increase on domestic shipping services starting April 26. FedEx and UPS have also increased their fuel surcharge rates.
Shipping rates are influenced by diesel prices, which have increased since the war. Diesel prices were around $3.89 per gallon before the war but jumped to $5.40 by March 6, according to the U.S. Energy Information Administration.
The war has damaged key energy infrastructure across the Middle East. The Strait of Hormuz has been effectively closed since the conflict started in late February. The strait is a key trade route through which 20 million barrels of crude oil and petroleum products normally pass daily, about one-fifth of the global supply.
The additional fees come as inflation is rising and gasoline prices soar. Gas prices have spiked about 21.2% between February and March, with consumer prices rising 3.3% for the year ending in March, the Labor Department said.
In addition, airlines are raising baggage fees.
American Airlines announced earlier this week that baggage fees will be raised starting on Thursday.
“These changes are the result of the airline’s continuing evaluation of pricing and in light of the current operating environment,” American Airlines said.
Alaska Airlines also said earlier this week it would increase its baggage fees for flights booked on or after April 10.
“Due to ongoing volatility in fuel prices and an uncertain global environment, Alaska Airlines is increasing its checked baggage fees for travel on North American Alaska Airlines and Hawaiian Airlines flights,” the airline said.
Jet fuel per gallon was about $2.50 at the end of February, but now it is around $4.25, according to data from Argus.
IRAN WAR DISRUPTS GLOBAL ALUMINUM SUPPLY, PROLONGING SHORTAGES FOR MONTHS
Meanwhile, European airlines have warned there could be significant fuel shortages if flows do not resume in the next several weeks. Airports Council International (ACI) Europe, which represents European airports, sent a letter to the European Union transport commissioner Apostolos Tzitzikostas, according to the Financial Times.
“If the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality for the EU,” the letter reads.
