Brands are raising free shipping thresholds, adding new delivery fees and testing paid shipping options as higher fuel costs push up the price of moving goods across supply chains.The changes come as gas prices have climbed following disruptions to shipping traffic through the Strait of Hormuz, a key route for global oil exports. For many retailers, shipping has become the latest pressure point after more than a year of higher costs because of inflation and President Donald Trump’s trade war. Higher fuel costs are now flowing through to freight bills, parcel delivery rates and carrier fuel surcharges, forcing brands to rethink shipping policies that many consumers have come to expect.
Relief may be on the horizon. The U.S. and Iran reached an interim peace agreement to reopen the Strait of Hormuz. Trump said in a Truth Social post on Monday that many ships “loaded up with oil” are starting to move through the strait.
U.S. gas prices surpassed $4 a gallon for the first time since 2022 in April as conflict in the Middle East pushed up fuel costs. As of Monday, the national average for regular gas stands at $4.06, well above the $3.14 average a year ago, according to the American Automobile Association.
