Will Last Mile Delivery Prices Go Up Because of Fuel — And What Can You Do About It?

Industry Insights · Victory SK

Short answer — yes, fuel affects last mile delivery prices. But how much it affects yours depends on a few things that you should consider when choosing a last mile delivery company for your freight.

Why fuel hits last mile harder than other shipping

Last mile is the most stop-heavy, time-intensive part of the supply chain. A truck making 10 residential deliveries in Newark burns significantly more fuel per mile than one driving a straight highway route. More stops, more idling, more time in traffic — it all adds up. When fuel prices rise those costs are typically passed on through fuel surcharges.

Why do some companies charge more than others?

Carriers calculate fuel costs differently. Big national carriers apply fuel surcharges across their entire operation — coast to coast. Even if your delivery is only going 20 miles across New Jersey, you're paying based on a nationwide cost structure. That's rarely fair to you.

Smaller regional carriers that only serve NJ, NY and the Northeast have lower overhead and more efficient local routes. Their drivers know the area — the traffic, the buildings, the best times to make deliveries. Less time on the road means less fuel burned, and that usually means lower costs for you.

What can you actually do to pay less?

Batch your deliveries. Instead of booking one delivery at a time, group them by area and day. A truck making 8 stops in the same neighborhood in one day costs much less per stop than 8 separate trips. This is the single easiest way to reduce your delivery costs right now.

Don't pay for more service than you need. White glove delivery — where the team brings items inside and sets them up — costs more than simply dropping something at the door. Not every shipment needs that. Match the service level to what the shipment actually requires and you'll save on every order.

Use a regional carrier for local freight. If your deliveries stay in NJ and NY there's no reason to use a national carrier. You're paying for their national network but only using a tiny part of it. A regional carrier charges for what you actually use.

Ask your carrier to explain your surcharges. Look at your last invoice and find the fuel surcharge line. Ask your carrier exactly how it's calculated. A good carrier can explain it clearly. If they can't — or if the number seems unrelated to your actual delivery distance — that's worth questioning.

Request scheduled delivery days. If you ship regularly to the same areas ask about fixed delivery schedules. When a carrier knows they'll be in a certain area every Tuesday they plan more efficiently. More efficient routes mean less fuel and sometimes lower pricing for regular customers.

Fuel costs go up and down and delivery prices follow. You can't control that. But you can control how efficiently you're shipping. Businesses that plan ahead — grouping deliveries, choosing the right service level, working with carriers who know their local area — consistently pay less than those who book reactively and never question their invoices.

A little planning goes a long way when prices are rising.