US Retailers Face Record Holiday Delivery Costs as Diesel Surcharges Rise

The squeeze here is structural rather than seasonal: fuel surcharges set by the two dominant carriers transmit diesel volatility directly onto retailers' peak-season economics, and holiday parcel volumes potentially doubling in the fourth quarter means the cost multiplier lands exactly when order flow is heaviest. The pressure falls hardest on e-commerce-heavy sellers with thin margins, who absorb the increase or pass it along. Whether carriers' surcharge formulas keep outpacing underlying fuel moves is the open question, along with how much of this cost retailers hold versus push to consumers during the peak.