Breaking

Retailers Split on Freight Costs as Supply Chain Pressures Mount Into Holiday Season

Major retailers faced divergent logistics headwinds during the third quarter, with freight and fuel expenses creating margin pressure across the sector heading into peak season. Amazon absorbed higher fuel and long-haul trucking rates but offset costs through fulfillment network optimization, inventory placement improvements and package consolidation. Shipping expenses climbed 11% year-over-year while unit volume rose 12%. Underlying operational gains limited the cost increase to 8% excluding fuel inflation. Tractor Supply reported transportation and fuel costs as primary margin drags despite a 5% sales increase. Carter's encountered port congestion and container availability constraints that left inventory 11% below prior-year levels at $587 million, though management said disruptions had not materially impacted operations. The uneven environment underscores how supply-chain execution directly influences retailer profitability during critical selling periods.