Thursday, October 22, 2026
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Furniture Delivery Fees Need a Fresh Look as Diesel Climbs

Ocean rates from Asia are inching up too, just as fewer homes go under contract before the holidays. Plus Ethan Allen, Southern Motion and tariff refunds.

FIN Desk··6 min read
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Furniture Delivery Fees Need a Fresh Look as Diesel Climbs

Ocean rates from Asia are inching up too, just as fewer homes go under contract before the holidays. Plus Ethan Allen, Southern Motion and tariff refunds.

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Diesel cost about $2.66 a gallon more than a year ago in the Oct 20 federal fuel report, and it rose again in the same week gasoline got cheaper. That split matters for furniture. Delivery trucks, inbound freight and the fuel surcharges on your carrier bills run on diesel, not gas.

The short version

  • Delivery costs: Diesel rose again and sits far above a year ago, and ocean rates from Asia edged up. Expect pressure on delivery fees and freight surcharges heading into the slow season.

  • Housing: Signed contracts on existing homes fell in every region in September, and fewer new homes were finished than a year ago. Fewer families will be setting up a new place before the holidays.

  • Ethan Allen: A smaller proxy advisor backed all five of the activist investor's board nominees. Shareholders vote Nov 4, before the company reports its quarter.

  • Quick hits: Southern Motion is still on interim financing, the tariff-refund case drew a request for more time, and the strike at IKEA's Joliet warehouse is over.

Delivery costs: Diesel climbs while gas gets cheaper

The U.S. Energy Information Administration's weekly fuel survey, released Oct 20, showed on-highway diesel up nearly a dime from the week before. Gasoline fell by about a nickel over the same week. Diesel rose in every region of the country, with the West Coast up the most. The weekly report doesn't explain the move.

On the ocean side, Drewry's World Container Index rose for a second straight week on Oct 22, to its highest level in nearly four months. Rates from Shanghai to Los Angeles and to New York both edged up. Drewry expects transpacific rates to hold steady through its Oct 29 reading, citing strong U.S. import demand.

When Albuquerque's American Home Furniture & Mattress announced its wind-down (covered Oct 19), it pointed to higher fuel and freight costs among its reasons.

What to do:

  • Ask your carriers which diesel index their fuel surcharge follows and when it resets.

  • Plan routes to fill trucks and cut repeat trips, such as grouping deliveries by area on set days.

  • Don't promise free delivery in holiday promotions without pricing in current fuel costs.

Housing: Fewer homes under contract before the holidays

The National Association of Realtors (NAR) said Oct 20 that pending home sales fell in September from August and were down about 11% from a year ago. Pending sales are signed contracts that usually close within one or two months. All four regions fell on both counts, with the West down the most. NAR's chief economist pointed to rising mortgage rates.

The Census Bureau's Oct 20 report showed fewer new homes finished in September than a year earlier, though completions were roughly even with August. Housing starts slipped, but that change was within the survey's margin of error.

Redfin said Oct 22 that pending sales hit the lowest level in its records, which go back to 2021. Freddie Mac's 30-year mortgage rate eased slightly the same day but stayed above 7%.

Contracts signed in September mostly close in October and November. Fewer closings and fewer finished homes mean fewer families setting up a new home before the holidays.

What to do:

  • Expect fewer new-mover sales through December than last year, and set staffing and delivery schedules to match.

  • Plan holiday promotions around rooms people update without moving, like the living room, or the guest room before visitors arrive.

  • Confirm how your own market compares. Month to month, the West fell the most and the Northeast the least.

Ethan Allen: A smaller proxy advisor backs the activist's slate

Activist investor DGB, led by Doug Bergeron, which says it owns about 5% of the stock, announced Oct 20 that proxy advisor Egan-Jones recommends shareholders vote for all five DGB nominees. Per DGB, Egan-Jones also recommended withholding votes from all five company nominees, including Chairman and CEO Farooq Kathwari. Egan-Jones is a smaller advisory firm. Institutional Shareholder Services (ISS) and Glass Lewis hadn't published recommendations as of Oct 22.

Ethan Allen will report its fiscal first-quarter results after the market closes Nov 9, five days after the Nov 4 shareholder meeting. The company says that timing follows its normal schedule and wasn't changed by the proxy fight. In an Oct 19 filing, it said recent revenue pressure partly reflects “softer core retail traffic, orders and delivered volume.” The board has committed to naming a new CEO by June 30, 2027.

What to do:

  • Plan for a new CEO at Ethan Allen by June 30, 2027, whichever slate wins.

  • Don't treat the Egan-Jones call as the outcome. Watch for ISS and Glass Lewis before Nov 4.

Quick hits

Southern Motion financing: After an Oct 20 hearing in its Chapter 11 case, the Pontotoc, Miss., furniture maker is still running on its interim debtor-in-possession (DIP) financing, the short-term funding the court allowed while the case moves forward. The court hasn't entered a final financing order or posted a new hearing date. If you carry the line, keep confirming ship dates and warranty support with your rep until the court rules.

Tariff refunds and trade calendar:

  • A motion for more time was filed the night of Oct 21 in the lead class case over refunds of tariffs collected under the International Emergency Economic Powers Act (IEEPA). The parties' proposed refund schedule was due at the Court of International Trade on Oct 22. The court had not ruled as of midday Oct 22.

  • U.S. Customs and Border Protection's refund page still covers only the first two phases of refunds.

  • U.S. port fees on Chinese ships are set to resume Nov 10, unless the U.S. Trade Representative extends the pause.

  • Section 232 tariff increases on upholstered wood furniture and on kitchen cabinets and vanities remain set for Jan 1, 2027.

If you're counting on an IEEPA refund, don't book it in your fourth-quarter plan until the court sets a schedule.

IKEA Joliet warehouse: Teamsters Local 179 says IKEA workers at the Joliet, Ill., distribution center ratified their first contract on Oct 21, a three-year deal with a double-digit raise, ending a strike that began in August. The terms come from the union's announcement. If you staff your own warehouse or delivery crew in that market, expect this contract to come up when wages are reviewed.

Dates to watch

  • Oct 27: EIA's next weekly diesel price report

  • Oct 29: Drewry's next World Container Index reading

  • Nov 4: Ethan Allen shareholder meeting and board vote

  • Nov 9: Ethan Allen fiscal first-quarter results, after the market closes

  • Nov 10: U.S. port fees on Chinese ships set to resume, unless extended

  • Jan 1, 2027: Section 232 tariff increases on upholstered wood furniture and on kitchen cabinets and vanities

  • June 30, 2027: Ethan Allen's deadline to name its next CEO

Bottom line

It costs more to get furniture to the floor and to the customer's door than it did a year ago, and fewer homes are changing hands before the holidays. Price delivery for what diesel costs now. Keep reorders tied to the demand you're actually seeing, and watch the Ethan Allen vote on Nov 4.

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