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Europe’s road hauliers shift focus to cost control as expenses outpace rates

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Rising freight rates are no longer enough to shore up the finances of Europe’s road hauliers. Spot prices have increased in recent months, but day-to-day operating costs are rising faster. Fuel, tolls, social charges and wages continue to squeeze margins, leaving a large part of the sector under cash-flow pressure.

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Speakers at a webinar hosted by The European Road Transport Institute (EITD), Trans.INFO and Eurowag said the sector is entering a period of sustained cost pressure. In their view, waiting for the market to improve is unlikely to be sufficient on its own; many operators are instead focusing on cutting overheads, digitising workflows and strengthening day-to-day operational discipline.

Labour costs are tightening margins

Workforce-related costs remain one of the biggest pain points for European carriers. Higher social contributions and wage pressure are pushing companies to look for lawful ways to reduce employment costs without cutting drivers’ take-home pay.

In practice, this often involves the use of specific allowances or reimbursements linked to workplace safety, per diems or route-related expenses—always within each country’s legal framework.

Many fleets are also rethinking how work is organised. Common long-haul patterns such as the “2/1” rotation (two weeks on the road followed by one week off) are starting to lose their economic appeal given today’s level of social charges. As a result, more operators are trying to increase effective vehicle utilisation and make better use of drivers’ monthly availability.

The experts also cautioned against a broader shift towards bogus self-employment or B2B-only arrangements used primarily as a cost-cutting tool. In several European countries, labour inspectorates are stepping up checks on these practices and increasing penalties.

Fuel remains the biggest swing factor

Fuel still accounts for 30–40% of transport operating costs. At the same time, many companies are facing liquidity constraints and are reaching fuel-card limits faster than before.

That can leave drivers buying smaller quantities at pump prices, without access to previously negotiated discounts.

As a result, detailed refuelling plans are becoming a central cost-control tool. Companies are increasingly calculating the minimum fuel required to reach specific stations where they have better commercial terms.

Interest is also growing in HVO, a synthetic diesel that can be used in much of today’s fleets without major technical changes. Beyond cutting CO2 emissions, it may help carriers secure better-paid “green” contracts without having to invest in new electric trucks.

Digitisation and automation to lift productivity

According to the speakers, cost reduction increasingly depends on deeper digitisation. Transport management systems are no longer being treated purely as back-office tools; more companies are using them to measure profitability by lane, customer or specific service.

Automation and artificial intelligence are also gaining ground. Tools that automatically import cost data, process documents or transcribe transport orders can reduce administrative workload and allow teams to focus on sales and operations.

At the same time, connecting telematics with driver apps and digital document flows is accelerating daily processes and improving visibility into trip-level costs. Digitisation can also shorten the time between delivery and invoicing—particularly important for businesses operating with tight cash flow.

A tougher market with fewer easy wins

The opening months of 2026 did not bring the rebound many in the industry had hoped for. Even where spot rates rose, many carriers saw little improvement in profitability.

“We’re not seeing a solid market recovery. Many rates are rising simply because carriers are trying to pass on steadily increasing operating costs to their customers,” says Michał Pakulniewicz, a transport market analyst at EITD.

The situation is compounded by a gap between market movements and the way contract mechanisms are designed to protect against fuel increases.

“Fuel clauses react too slowly and don’t keep pace with the market. More and more companies quickly exhaust their card limits and end up buying small quantities at very high prices,” notes Tomasz Czyż, a technology solutions expert at Eurowag.

Tolls across Europe are also continuing to rise, alongside CO2-related surcharges, making virtually every international lane more expensive.

Differences in tax and social systems between European countries are also intensifying competition. Some operators can run with significantly more favourable cost structures than others, increasing pressure across the wider market.

What to expect in the second half of the year

The second half of 2026 does not point to a quick turnaround either. Industrial indicators in Germany and across the eurozone remain weak, limiting demand for international road haulage.

Oil prices may ease slightly in the months ahead, but analysts expect them to remain elevated for much of the sector. For many hauliers, cutting costs and digitising operations is no longer optional; it is increasingly a condition of staying competitive in the European market.

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