Rising fuel costs push brands to adjust shipping policies

New Economic Realities // June 16, 2026 Rising fuel costs push brands to adjust shipping policies By Allison Smith Ivy Liu 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. TickWise 3 Moms Organics is among the businesses feeling the ripple effects of the conflict in Iran as FedEx, United Parcel Service and the U. S. Postal Service raise prices to offset higher fuel costs.

To cope, the natural insect repellent brand increased its free shipping threshold to $100 from $75. “Raising those minimum thresholds for free shipping is a necessity,” said Lisa-Jae Eggert, the founder of TickWise 3 Moms Organics. “It’s not something I want to do.”

Last year, it cost about $1,400 to move a truckload of product from Indiana, where TickWise’s products are made. This year, that cost jumped to about $2,700, Eggert said. Shipping a package that once cost $5. 36 now costs about $8. 42. Eggert said the company raised the price of its bestselling product to $21. 99 from $18.

99 this season, but that alone wasn’t enough to offset higher freight and delivery costs. For many brands, shipping has become the latest area where they are looking for savings after contending with tariffs, higher manufacturing costs and other expenses over the past year.

Even though TickWise produces its products domestically, Eggert said the company has faced higher costs across its supply chain, including for bottles, labels and other materials used to make and package its products. “I was already getting squeezed in so many directions,” Eggert said. “Once prices went up from tariffs, they never came down.”

Some larger retailers appear to be making similar adjustments. According to archived versions of its website, Barnes & Noble raised its free shipping threshold to $60 from $50 some time after March 8. Similarly, J. Crew increased expedited shipping fees by $2, from $15 to $17, some time between Feb. 1 and March 11.

Madewell also appears to have discontinued its economy shipping offering, which was shown as an option as recently as April but is no longer listed on the retailer’s website. Not every retailer has found that customers will accept higher shipping thresholds.

Joe & Bella already scaled back its free online returns policy last year to offset duties on imports from China, where the company manufactures its adaptive clothing for seniors and people with disabilities.

But when fuel costs surged earlier this year, Joe & Bella tested raising its free shipping threshold from $75 to $100 after seeing shipping costs rise sharply. The company’s average shipment cost, which had typically been about $9. 50, climbed to as much as $14 or $18 in some cases. The higher threshold hurt performance almost immediately.

Site conversion fell by more than half, prompting the company to return to its previous policy. “Our site conversion absolutely tanked,” said Jimmy Zollo, co-founder and chief executive of Joe & Bella. “We’re trying to do all we can to avoid just passing higher fuel and freight costs on to our customers.”

Instead, Joe & Bella is looking elsewhere for savings. The company has begun bulk ordering components such as zippers and other trims in hopes of lowering product costs and reducing freight expenses. It also added a paid express shipping option that some customers are choosing even when they qualify for free shipping.

Some retailers are taking a different approach by charging customers shipping rates that more closely reflect actual delivery costs. Lori’s Designer Shoes plans to begin offering calculated shipping next week.

Instead of charging a flat $10 fee on orders that fall below its $150 free shipping threshold, the retailer will display rates based on package weight, box dimensions