FDRA warns oil price surge to squeeze footwear margins
Footwear Distributors and Retailers of America president and CEO Matt Priest said rising oil prices following the US - Iran conflict are driving up costs across the footwear industry.
Container fuel surcharges have climbed to $275–$375 (€253–€345), spot shipping rates to $400–$1,000 (€368–€920) and air freight costs have surged with jet fuel prices up about 75 percent.
Priest noted oil-based components, including EVA, polyester, and nylon, may see cost increases of 3–7 percent over the next two to three months. He added tariffs could compound the impact, since duties are based on freight on board values.
The FDRA’s first-quarter 2026 survey showed US footwear executives more optimistic, expecting firmer sales and moderating landed costs. Some respondents welcomed the Supreme Court of the United States ruling overturning emergency tariffs. With Section 122 tariffs set to expire in July, the FDRA is working with the administration to limit new measures under Section 301.
