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As fuel prices surge amidst Middle East uncertainties, several Canadian food suppliers are tacking on fuel surcharges to their deliveries to offset rising expenses.
Documentation obtained by CBC News reveals that at least four suppliers — Sunrise Farms, CTS Foods, Maple Leaf, and Tree of Life — are implementing fuel surcharges. The additional fees introduced by Tree of Life and Maple Leaf were initially disclosed by the Globe and Mail.
These surcharges have prompted some grocery store owners, especially those managing smaller enterprises, to contemplate passing on a portion of the increased costs to consumers.
In a communication to buyers, Sunrise Farms announced a five-cent-per-kilogram fuel cost adjustment, along with a $10 fuel surcharge starting from April 13. The per-kilogram rate, meant to be temporary, will be revised bi-weekly based on prevailing “fuel market conditions,” as per the communication.
According to Maple Leaf’s notice, they will impose an 11-cent-per-kilogram fuel surcharge on shipments of all prepared meat and fresh poultry starting April 6. The meat supplier’s communication stated that the surcharge, intended as a temporary measure, will be reviewed weekly in response to the rapid oil price escalation following the effective closure of the Strait of Hormuz.
Approximately one-fifth of the world’s oil passes through this crucial waterway, whose closure has become a central issue in the Middle East conflict that commenced in February with strikes by the U.S. and Israel on Iran.
CTS Foods and Tree of Life have both announced a temporary $10 fuel surcharge per delivery, with the latter specifying that their surcharge will be rescinded when diesel prices fall to a “rolling three-month average” of $1.20 per liter or less.
The impact of rising fuel prices caused by the U.S. and Israel-Iran war is expected to show up next at the grocery store, starting with imported produce and some meat and dairy products.
A spokesperson from CTS Foods confirmed the rate hike to CBC News via email.
“As a distributor, transportation costs significantly impact our operations, and this temporary surcharge is solely meant to offset extraordinary delivery expenses,” stated Jessica Hemmerich, marketing and regulatory compliance manager for
