Small Businesses Report Rising Shipping Costs

In a survey carried out by Endicia, the Palo Alto based internet postage company, 84% of small businesses reported an increase in their shipping costs this year. The survey noted that on average theire is a surcharge for fuel of 8.25% on ground shipments and 28.5% on air services. These fuel surcharges were passed on to the customer by businesses that spent the most on shipping. Over 60% of companies spending over $10,000 passed the surcharge on to customers.

With the departure of DHL, small businesses have less shipping choices. Unlike private shipping companies, the US Postal Service has not implemented a fuel surcharge which is extremely attractive to small businesses. However as fuel prices fluctuate, businesses should be cognizant of any rate changes. Endicia’s survey found that 34% respondents did not know if their shipper had instituted a fuel surcharge.