Source: NYT > Business
The Iran conflict is creating immediate margin pressure on the most time-sensitive supply chains—perishable goods that spoil in days, not weeks, giving distributors little negotiating leverage with retailers. Unlike durable goods where suppliers can absorb temporary fuel costs or adjust logistics, fresh food distributors are now openly adding surcharges, which means grocery chains face a choice between raising produce prices or squeezing margins themselves, accelerating retail consolidation around suppliers with scale advantages. Geopolitical volatility now directly reshuffles which intermediaries survive and which get disintermediated in food retail.