By Senad Karaahmetovic
Walmart (NYSE:WMT) notified suppliers about new fuel and pickup fees it plans to charge as the retail giant explores ways to weather mounting transportation costs, according to the Wall Street Journal.
The company will introduce a fuel surcharge and a “collect pickup charge” on August 1 to companies that use Walmart to move goods to the retailer’s warehouses and stores.
The new fees represent Walmart’s attempt to adapt “to the significant transformation and increased cost seen in the transportation industry over the past few years,” according to a memo delivered to suppliers.
In the memo, Walmart explained the collect pickup charge represents a percentage of the cost of the goods received by the retailer, while the fuel surcharge is calculated based on fuel expenses to transport the products.
Walmart received backlash from some of its suppliers for not sharing additional details about the expected charges and not providing them with more time to prepare for the new fees.
“I have an unknown expense and nothing I can do about it,” one of the suppliers said. It also described the move as “a retroactive charge” given that most of the suppliers already entered product order agreements with Walmart for the following year.
Walmart said suppliers can switch from its collect shipping service to “prepaid shipping,” which involves the supplier organizing and paying for the shipping to become a part of the retailer’s supply chain.