Online shipping costs expected to increase further into the pandemic

Delivery costs have been rising across the country and are expected to continue as the pandemic drags on, creating a serious headwind for retailers, according to a report by Jefferies. “The recent growth in shipping costs has been fueled by the surge in e-commerce penetration, which has created a significant supply/demand imbalance and left carriers capacity constrained,” Jeffries’ analyst Janine Stichter said in the report, which was based on a call with Dean Maciuba, a former FedEx executive who is currently the North America managing partner at consulting firm Last Mile Experts. Read more at CNBC.

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