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War in Irans impact felt by industries at home
The impact of the war in Iran is still being felt in the Bay Area, whether its at the pump or the Port of Oakland. Some industries are being hit harder than most. KTVUs Tom Vacar takes a look at how delivery drivers are faring.
OAKLAND, Calif. - Deeply rooted in the financial damage the Iran War to the world's economy, the fossil fuel-dependent United States will be particularly affected by adding inflationary costs for everything. Whether it's Costco or Sarita's Flower Shop, the inflation squeeze is getting tighter.
Besieged by fuel price impacts
American truckers have been body slammed by higher diesel costs, the lifeblood of supply chain deliveries.
"The Sunday after the war, our fuel price went up by a dollar just overnight," said Bill Aboudi, owner of AB Trucking at the Port of Oakland.
That was back then. What about now?
What they're saying:
"And so, we're feeling it. Our fuel prices are doubling and so we're passing on an emergency war surcharge. We've added 15% to our rates. We pick up from the port. We deliver to a distribution center. The distribution center then delivers it to the store. So, everybody's burning fuel," said Aboudi.
Another surcharge is added on by each of those intermediaries to the consumer who can pass it on to no one. "Everything is up and it's just an effect that goes downstream and we're all gonna feel it. Now there's talk about more tariffs and so it's an ongoing issue here," said Aboudi.
This has made the trucking shortage far worse, bankrupting those who literally live from hauling job to hauling job. "Some truckers are deciding to not work and take some time off and the ones that are working are gouging," said Aboudi.
Small businesses getting burned
If all of this is hurting big retailers and big shippers, imagine what it's doing to small stores like Sarita's Flower Shop in Richmond. Sarita's Flowers is a tiny flower and gift shop in central Richmond that often delivers her wares over a wide area of clients and customers, costing her a lot more to make those deliveries.
Owner, operator, and sole employee, Adriana Corona de Sanchez named it after her grandmother, who was a floral designer. "It's more difficult for the business. Yeah," she said.
Sarita's suppliers demand and assess fuel surcharges on deliveries to the shop. But, she almost lost a large order over a $30 delivery charge to Vallejo; 18 miles, a bridge toll and driver's wage away, that contained a five dollar fuel surcharge.
She had to give up the surcharge to save the transaction. "$25 dollars is not enough, you know, but I had to deliver a funeral package and I say, OK," said Corona de Sanchez.
Inflation report coming
What's next:
On Friday, the inflation report comes out, expected to rise to as much as 3.4%, a sharp increase from February's 2.4% rate. And, you're paying for it.