Supermarket titan Coles (ASX:COL) announced emergency amendments to its freight levy agreements.
The shift comes as a direct response to the "significant cost pressure" currently hampering transport operators due to extreme volatility in the global oil market.
Effective immediately, the retailer will transition from monthly to fortnightly fuel levy reviews, ensuring that the freight rates paid to small and medium carriers more accurately reflect the rapid fluctuations in diesel prices.
The updated mechanism will now utilise the most recent Australian Institute of Petroleum terminal gate prices to determine adjustments, effectively shortening the lag time between a price spike at the pump and a compensatory increase in carrier rates.
A spokesperson for Coles emphasised that the temporary measure is designed to assist providers in recouping rising overheads more fairly, noting that the previous monthly smoothing process struggled to keep pace with day-to-day market instability.
Coles is also addressing liquidity concerns by offering reduced payment terms to its smaller logistics partners.
The tactical shift aims to bolster cash flow for the operators responsible for moving essential goods to more than 800 supermarkets across the country.
Despite the intensifying financial strain on the transport sector, Coles confirmed that shelf availability remains unaffected, with no current disruptions reported in the delivery of goods to its national store network.
At the time of reporting, Coles' share price was $21.61.