-------------------------------------------------------------------------------- Document ID : DARX-OPS-LOG-BRIEF-001 Title : Logistics Cost Crisis and Response Window : 7-Day Cost Movement Analysis — April 21, 2026 Version : 1.0 Status : ACTIVE Date Created : 2026-04-21 Prepared by : PYB / Daralbeida Style : BPGP Department : OPS Classification: Internal — Operational Related Docs : Daralbeida_Landed_Cost_Calculator.xlsx Notes : Valid through April 28, 2026. Fuel surcharges and spot : rates update weekly. Verify all figures before acting. -------------------------------------------------------------------------------- OUTLINE -------------------------------------------------------------------------------- 1. Purpose and Scope 2. Executive Summary 3. Cost Movements — Seven-Day Analysis 4. Cost Drivers 5. Recommended Actions 6. Financial Snapshot 7. Repricing Analysis 8. Action Checklist 9. Supporting Data 10. Acronyms 11. Glossary 12. Document Control ================================================================================ 1. PURPOSE AND SCOPE ================================================================================ This document records and structures the Daralbeida logistics cost crisis brief of April 21, 2026. It covers a seven-day window of cost movements across three independent shocks: the Amazon FBA fuel surcharge (April 17), the Iran-war-induced container rate spike, and nationwide diesel price escalation. It documents the financial impact, recommended response actions, and a response window of 7-10 days. This document is valid through April 28, 2026. Fuel surcharges and spot rates update weekly. All figures must be verified before acting. ================================================================================ 2. EXECUTIVE SUMMARY ================================================================================ Total landed cost shifted +$6,400-$7,100 per 10,000 units in the 7 days prior to April 21, 2026. Three independent shocks drove this: 1. Amazon FBA 3.5% fuel surcharge effective April 17, 2026. 2. Iran-war-induced container rate spike: +49% Shanghai-LA. 3. Nationwide diesel: $5.07/gal (+$1.52 year-over-year). At 10,000 units per year, this erodes approximately 0.8-0.9 percentage points of the 41% margin target unless addressed within 7-10 days. The next round of carrier fuel surcharge updates and port congestion charges is expected to lock in at new highs within that window. ================================================================================ 3. COST MOVEMENTS — SEVEN-DAY ANALYSIS ================================================================================ 3.1 Amazon FBA Channel (estimated 70% of volume) -------------------------------------------------------------------------------- Amazon implemented a 3.5% fuel surcharge on all FBA fulfillment fees effective April 17, 2026, applied to US and Canada. Cost item Change per unit Notes --------------------------------------------------------------- FBA base fulfillment fee +$0.03 Jan 15 hike now in invoices FBA fuel surcharge +$0.08 New April 17 FBA Inbound Defect Fees +$0.20 Jumped from $0.02-$0.07 to $0.32-$1.74; FBA prep ended January 1, 2026 Aged inventory surcharge +$0.13 Threshold moved (181+ days) from 271 to 181 days 7-day FBA channel impact: +$4,400 for 10,000 units. 3.2 Parcel and DTC Carriers (estimated 15% of volume) -------------------------------------------------------------------------------- Carrier Current Surcharge Notes ----------------------------------------------- UPS Ground 22.75% FSC Updates weekly FedEx Ground 25.0% FSC Up from ~21% in early March USPS 8% surcharge Effective April 26, 2026 through January 17, 2027 7-day parcel impact: +$1,200-$1,500 for 10,000 units. Weekly volatility of $0.02-$0.03/unit expected through summer. 3.3 Inbound Truckload (LA to Santa Monica) -------------------------------------------------------------------------------- Lane Prior rate Current rate Change --------------------------------------------------------------- Dry van spot $2.32/mile $2.52/mile +8.6% Flatbed spot $2.89/mile $3.15/mile +9.0% Port dwell POLA $8.50/day $9.40/day +10.6% 7-day inbound impact: +$800-$1,200 for 10,000 units. 3.4 Ocean and FCL Import (Year 2+ relevance) -------------------------------------------------------------------------------- Route Prior rate Current rate Change --------------------------------------------------------------- Shanghai-LA (40ft) $1,890 $2,810 +48.7% Peak Season $0 $2,000 New; Surcharge (PSS) (eff. May 1) locks in May 1 Year 2 action: front-load June shipment to avoid May 1 PSS; negotiate contract rates before $3,000/40ft becomes standard. ================================================================================ 4. COST DRIVERS ================================================================================ Driver 1 Iran War and Strait of Hormuz Closure (since March 2026) Spot rates from Far East to US West Coast up 29% since end of February. Diesel surging with fuel costs. Carriers increasing blank sailings to manage capacity. Driver 2 Diesel Volatility National average: $5.07/gal April 21 vs. $3.55/gal February 28 — +42.5% in 7 weeks. Diesel hit $5.375/gal in the week of March 22-28, highest since late 2022. UPS fuel surcharge tables restructured March 9 and April 13. FedEx following. USPS entering surcharge market for first time. Driver 3 Carrier Supply Contraction Available truck capacity postings (dry van, reefer, flatbed) each reached their lowest Week 13 counts in at least 10 years of DAT data. Flatbed market showing approximately 74 loads per truck. Driver 4 Amazon Structural Changes Five Amazon policy changes in Q1 2026: fee hikes, end of FBA prep services, per-unit removal fees, returns processing fee on apparel, DD+7 payout delay. Inbound Defect Fees are now the fastest-growing FBA cost line. ================================================================================ 5. RECOMMENDED ACTIONS ================================================================================ 5.1 Tier 1 — Immediate (This Week) -------------------------------------------------------------------------------- Action 1 Reprice on Amazon FBA The 0.5L product at $26 retail sits below the $50 threshold for the largest fee increase. The cumulative surcharge ($0.11/unit) justifies a $0.30-$0.40 retail price increase on the 2-pack. Test 2-pack from $51.99 to $53.99 (3.9% lift). Monitor conversion 48-72 hours. Maintain single-unit pricing; defend bundle strategy. Action 2 Enforce FNSKU and Prep Quality Real-world IDF exposure: $0.18-$0.42/unit once IDF, prep replacement cost, and SIPP non-compliance are layered in. Audit 3PL prep partner. If mislabel rate above 1%, shift prep center or bring FNSKU in-house for next shipment. SOP: 100% unit inspection, barcode verification, poly-bagging before shipment. $0.32/unit IDF = $3,200 exposure per 10K units. Action 3 Liquidate Aged Inventory Pull Seller Central: Inventory Management, Inventory Health, Aged Inventory Surcharge report. Anything 150+ days: mark down 20-30% or remove to salvage. Surcharge schedule: 181 days: +15% 271 days: +20% 361 days: +40% 541 days: +50% For slow-movers: 4-pack bundle or gift-pack promo resets the aging clock and increases turnover. Action 4 Lock Parcel Carrier Rates for Q2-Q3 Solicit FedEx/UPS quotes for Q2-Q3 DTC prepaid shipping. Request explicit fuel surcharge caps (e.g., "not to exceed 26% FSC"). For lightweight items, UPS/FedEx is now likely cheaper than USPS post-April 26. 5.2 Tier 2 — Week 2 (April 22-28) -------------------------------------------------------------------------------- Action 5 Front-Load Import Timing (if Year 2 expansion is planned) Negotiate June shipment now before May 1 PSS ($2,000/40ft) locks in. If rates stabilize at $2,700-$2,800, lock 1-2 containers for June delivery. Confirmed landed cost at 1,000-bottle container: Shanghai FOB + freight $2,800- $3,000 + insurance + dwell + truck LA-Santa Monica $168 + Amazon FBA inbound = approximately $1.80-$2.10/unit. Action 6 Communicate Price Lift to Wholesale Partners If pursuing specialty retail or Whole Foods, inform of logistics cost reset. Supplier margin compression is industry-wide. Expect 2-3% price resets across premium olive oil category in Q2-Q3. 5.3 Tier 3 — Ongoing (Weekly Cadence) -------------------------------------------------------------------------------- Action 7 Monitor Weekly FSC Updates Every Monday morning: check UPS/FedEx fuel surcharge sites. If diesel crosses $5.50/gal, trigger repricing review (potential +$0.04-$0.05/unit FBA surcharge). Action 8 Port and Dwell Optimization If importing, negotiate express dwell terms (2 days free, not 4). Truck pickup within 24 hours of vessel arrival. Alternative: Port of Oakland (lower dwell, longer drayage). ================================================================================ 6. FINANCIAL SNAPSHOT ================================================================================ At 10,000 units per year: Channel Volume Prior Cost Current Cost 7-Day Delta Annual per Unit per Unit Impact ----------------------------------------------------------------------- Amazon FBA 7,000 $0.94 $1.08 +$0.14 +$980 Parcel/DTC 1,500 $0.22 $0.24 +$0.02 +$30 Wholesale 1,500 $0.18 $0.20 +$0.02 +$30 Inbound avg 10,000 $0.32 $0.36 +$0.04 +$400 ----------------------------------------------------------------------- TOTAL $1.66 $1.88 +$0.22 +$2,200 -$2,800 Additional exposure: IDF contingency (1% error rate): $3,200/year Aged inventory surcharges: $1,300-$1,500/year Conservative 2026 total impact: +$6,400-$7,100 in logistics costs, or 0.8-0.9 percentage points of margin if unaddressed. ================================================================================ 7. REPRICING ANALYSIS ================================================================================ 7.1 Single Unit at Current Retail -------------------------------------------------------------------------------- Item Prior After 3.5% surcharge --------------------------------------------------------------- Retail price $26.00 $26.00 (unchanged) Less referral fee (15%) -$3.90 -$3.90 Less FBA fulfillment -$3.22 -$3.30 Less FBA fuel surcharge - -$0.11 Less goods cost -$10.00 -$10.00 Gross margin $8.88 $8.69 To recover margin: lift price to $26.40 (1.5% lift). Referral: -$3.96 FBA total: -$3.41 Goods: -$10.00 Gross margin: $9.03 (recovered + $0.14/unit) 7.2 Two-Pack Bundle Test -------------------------------------------------------------------------------- Scenario Price Referral FBA Goods Margin --------------------------------------------------------------- Prior 2-pack $51.99 -$7.80 -$6.44 -$20.00 $17.75 Proposed 2-pack $53.99 -$8.10 -$6.60 -$20.00 $19.29 Improvement +$1.54/pk 3.9% price lift is within typical premium elasticity tolerance. ================================================================================ 8. ACTION CHECKLIST ================================================================================ Item Action Deadline --------------------------------------------------------------- 1 Audit FBA prep partner; lock QA SOP for This week next inbound shipment 2 Run Aged Inventory report; liquidate This week 150+ day stock 3 Price test 2-pack $51.99 to $53.99; This week monitor 48-hour conversion 4 Solicit FedEx/UPS Q2-Q3 quotes with This week FSC cap terms 5 Pull DAT/Truckstop weekly truck-post counts; This week assess inbound routing alternatives 6 If Year 2 import planned: negotiate June April 22-28 container rate (avoid May 1 PSS) 7 Set Monday 8 AM calendar alert for weekly Ongoing UPS/FedEx FSC updates 8 Budget $3,200-$4,000 IDF contingency In 2026 P&L in 2026 P&L ================================================================================ 9. SUPPORTING DATA ================================================================================ All source data points are from April 2026: Source Detail --------------------------------------------------------------- Amazon FBA fee changes Effective January 15 + April 17 surcharge UPS/FedEx fuel surcharges Updated March 9, April 13; weekly adjustments ongoing USPS surcharge Effective April 26 pending regulatory approval Diesel price $5.07/gal (week of April 14-21) DAT spot rates 2-year highs (week ending April 12) Container rates Shanghai-LA $2,810/40ft (Drewry WCI, week of April 16) POLA dwell Escalated due to Strait of Hormuz reroutes Xeneta FEU market average $2,645 as of April 10 (up 41% since pre-conflict February 28) Companion spreadsheet: daralbeida_logistics_cost_deltas.xlsx (detailed cost-by-lane breakdown with status codes and action triggers) ================================================================================ 10. ACRONYMS ================================================================================ ASIN Amazon Standard Identification Number ASP Average Selling Price COA Certificate of Analysis DAT DAT Freight and Analytics (trucking rate data) DD+7 Amazon payout delay policy (disbursement + 7 days) EVOO Extra Virgin Olive Oil FBA Fulfilled by Amazon FCL Full Container Load FEU Forty-foot Equivalent Unit FNSKU Fulfillment Network Stock Keeping Unit FSC Fuel Surcharge IDF Inbound Defect Fee LCL Less than Container Load P&L Profit and Loss POLA Port of Los Angeles PSS Peak Season Surcharge PYB Internal reference code for the Daralbeida founder QA Quality Assurance SIPP Seller-Initiated Prep Policy SOP Standard Operating Procedure 3PL Third-Party Logistics provider ================================================================================ 11. GLOSSARY ================================================================================ Daralbeida Brand name of the premium Moroccan EVOO venture. Always one word. USPTO-registered trademark. FBA Inbound Defect Fee (IDF) Amazon fee charged when inbound shipments do not meet prep and labeling requirements. Jumped from $0.02-$0.07/unit in 2025 to $0.32-$1.74/unit for standard sizes in 2026 after Amazon eliminated FBA prep services on January 1, 2026. Fuel Surcharge (FSC) Variable additional charge applied by carriers (Amazon, UPS, FedEx, USPS) on top of base rates, calculated as a percentage and tied to a diesel price index. Updates weekly for UPS and FedEx. MAFTA Morocco-America Free Trade Agreement. Grants Moroccan-origin EVOO zero import duty under HTS 1509.10.4000. Peak Season Surcharge (PSS) Additional ocean freight charge applied by carriers during high- demand periods. Announced at $2,000/40ft effective May 1, 2026. Port of Los Angeles (POLA) Primary US West Coast container port. Experiencing increased dwell fees due to rerouting caused by the Strait of Hormuz closure. Strait of Hormuz Strategic waterway between the Persian Gulf and the Gulf of Oman. Closure due to Iran-related conflict since March 2026 is the primary driver of container rate escalation on Far East to US West Coast routes. -------------------------------------------------------------------------------- DOCUMENT CONTROL (FOOTER) -------------------------------------------------------------------------------- Document ID : DARX-OPS-LOG-BRIEF-001 Version : 1.0 Status : ACTIVE Style : BPGP Department : OPS Last Modified : 2026-04-21 Review Cycle : Point-in-time document. Valid through April 28, 2026. Not updated after expiry — a new document is created for the next cost movement review. Retention : 2 years from date of creation Owner : PYB / Daralbeida Distribution : Internal — founder, finance, operations COMPLIANCE : All freight rates, fuel surcharges, and fee figures in this document reflect April 21, 2026 data only. Carrier surcharges update weekly. Verify all figures against current carrier rate tables before repricing or contracting. Document expires April 28, 2026. Revision History: Version Date Author Summary of Changes -------------------------------------------------- 1.0 2026-04-21 PYB Initial issue -------------------------------------------------------------------------------- END OF DOCUMENT — DARX-OPS-LOG-BRIEF-001 --------------------------------------------------------------------------------