Produce distributors pass on fuel costs as produce prices rise
Updated
Updated · The Wall Street Journal · May 10
Produce distributors pass on fuel costs as produce prices rise
8 articles · Updated · The Wall Street Journal · May 10
At New York City's Hunts Point market, $5.66-a-gallon diesel has pushed a California-to-Bronx celery haul to $11,000, up 46%, adding about 40 cents per sleeve.
Vendors say margins are shrinking as trucking, airfreight and storage costs climb, lifting prices for avocados, lemons and asparagus; Peru asparagus was about $60 for 11 pounds, versus $32 a year earlier.
After the March Strait of Hormuz closure jolted energy markets, fruit and vegetable prices rose more than 2% in February and March, and growers warn higher freight, fertilizer and packaging costs could force further increases.
With food prices tied to foreign oil, can America's green energy boom actually secure the nation's food supply?
As fuel costs make shipping unprofitable, could American farms let crops rot in the fields this year?
Is the current food price crisis a temporary shock or the new permanent reality for American families?
Strait of Hormuz Shutdown 2026: The Ripple Effects on North American Fuel and Food Costs
Overview
In May 2026, the ongoing conflict with Iran led to the closure of the Strait of Hormuz, causing a major disruption in global oil flows. This triggered an immediate shockwave in energy markets, resulting in soaring fuel costs and rising food prices, especially in North America. The sudden spike in fuel expenses fueled inflation and economic uncertainty, with supply chains facing new surcharges and delays. As oil supply remained constrained, both consumers and businesses experienced higher costs, and experts warned that even if the Strait reopened, markets would take months to recover, keeping prices elevated for the foreseeable future.