Retailers Face Record Holiday Delivery Prices

US retailers face record holiday delivery prices as soaring diesel costs and higher carrier surcharges drive up shipping expenses. Ground and express delivery rates are climbing significantly higher compared to last year.

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FILE PHOTO: A driver of FedEx loads packages into a delivery truck during Black Friday preparations in the Georgetown neighborhood of Washington, U.S., November 26, 2024. REUTERS/Benoit Tessier/File Photo

United States retailers face the most expensive holiday shipping year on record as ground delivery prices climb 5.8% over last year. The surge is driven by soaring fuel costs and rising carrier surcharges ahead of the fourth-quarter volume peak. Express parcel prices are forecast to jump 13.8% from the fourth quarter of 2025, according to the TD Cowen/AFS Freight Index. That increase threatens retail profit margins during the critical shopping season.

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