Prices in stores throughout Haines are likely to rise beginning Jan. 31 when Alaska Marine Lines (AML) increases shipping rates in Southeast by 5%. The increase will reflect an 8.75% total increase since January 2020.
“The freight weight is definitely a factor in price. We take the freight rate we’re charged and add that into the price (of an item) at the store,” Oleruds manager Tyler Swinton said. “I don’t imagine (the price increase) will be huge, but I think people will notice.”
It’s complicated to predict how the increase will impact specific items, according to local store owners. Rates vary from store to store and are based on the type of item being shipped. Store owners said in general, price increases will be more apparent for heavier items.
“Lighter goods will probably see an increase in pennies,” Swinton said, listing paper products and cereal as examples. Heavier items like soda, canned goods and meat will see bigger markups.
AML declined to comment on the decision to increase prices. Local store owners speculate that it has to do with the COVID-19 pandemic.
“I’m not surprised by AML’s price increase. I think with the cost of COVID, everyone’s prices are going up. We’re seeing price increases on lots of materials this year for a variety of reasons,” Lutak Lumber owner Chip Lende said. He said as a business that deals with a lot of heavy items that arrive in Haines via barge, AML’s price increases will translate to price increases in the store.
“Freight’s a significant cost of everything that comes into town,” Lende said. “We’ll just have to bite the bullet. I don’t know what else to do. We only have one carrier.”
Some stores in town rely more heavily on the U.S. Postal Service (USPS) for the inventory they sell. For these stores, only items received via barge are likely to see price increases.
“We do some of our stuff on AML. I suspect the shipping rate increases will affect all retailers in town, but most of our stuff comes from USPS,” Alaska Backcountry Outfitter owner Dan Egolf said. He said the store receives items like campstove fuel via barge.
Like Egolf, RadioShack owner Patty Campbell said the AML rate increase will only apply to select items in the store, those not received through the post office. “It will increase (prices for) the heavier items, things like TVs, printers and copier paper,” she said.
The last time AML had a general rate increase in Southeast was a 3.75% increase that took effect Jan. 26, 2020.