Retailers grapple with soaring fuel surcharges to ship online orders - BNN Bloomberg

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Retailers grapple with soaring fuel surcharges to ship online orders - BNN Bloomberg
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Canadian retailers are struggling with higher shipping costs as couriers tack hefty fuel surcharges onto shipping rates to recoup record gas prices.

The additional charge is sending the cost of shipping goods within Canada higher, topping 40 per cent for some carriers.

"Retail is one of the most competitive industries in Canada, so raising minimum free shipping thresholds or adding surcharges to consumers directly is often done as a last resort," she said. Higher domestic shipping costs come as international freight costs finally begin to stabilize. "We're absolutely clear that especially at the moment with inflation and how customers are feeling ... we will not want to be raising prices," Ruis said.

Apparel retailers, which often see the highest return volumes among retailers, also appear determined to avoid passing fuel surcharges on.

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