Work directly with carriers to secure capacity and avoid double margins as fuel prices rise

- Author: Agnieszka Leone

How rising fuel prices are reshaping freight forwarding in Europe

We’ve seen this happen before. In 2022, when war started in Ukraine, oil prices surged past $100 per barrel and sent shockwaves through European transport. But back then, demand was rebounding after the pandemic, volumes were growing, and despite the turbulence, there was still a sense that the market was moving forward.

Today, things are very different.

Across Europe, consumption has been softening for months, and uncertainty is starting to weigh on transport volumes. Instead of recovery, the market is entering a period of hesitation, and now, another geopolitical escalation is pushing fuel prices up again.

You can see this volatility directly in operations. A 1,000 km route that cost around €480 in fuel at the beginning of the year can now reach up to €750 if refueling happens in the Netherlands, for example, one of the most expensive European countries when it comes to fuel prices.

Many carriers are planning to refuel in cheaper places, but even that is subject to restrictions in some countries: for example in Hungary, the measure to freeze prices applies only to vehicles with Hungarian registration and documents.

Why fuel price increases are now a direct risk for forwarders

Fuel is no longer just a carrier issue. It is becoming a forwarder’s problem. Fuel represents up to 30–40% of a carrier’s operating costs. Even a €0.20–€0.30 increase per liter can add hundreds of euros to a single shipment.

At the same time, many carriers operate on 45 to 90 day payment terms, which means they are financing transport upfront.

When fuel prices rise quickly, this model breaks down. Smaller carriers lose liquidity and start limiting operations or rejecting loads.

For forwarders, this translates into reduced capacity, higher rates, and significant operational risk.

Why working with subcontractors increases transport costs in a high fuel price market

In many European markets, freight is still sourced through multiple layers. A forwarder works with another forwarder, who then finds a carrier. Each step adds margin and puts more pressure on carrier cost.

When fuel prices rise, this structure becomes too expensive.

This is how forwarders end up paying more without fully understanding why, and how carriers, especially small ones, end up earning too little to support their business. In a volatile market, reducing unnecessary layers becomes one of the fastest ways to control costs.

Why contract rates cannot keep up with fuel price volatility

Fuel prices change weekly, sometimes daily. Carrier rates adjust quickly. Contracts do not. This creates a situation where transport costs increase immediately, while revenues remain fixed. Over time, this gap directly reduces margins.

At the same time, carriers become more selective. They prioritize profitable routes and reliable partners, and avoid underpriced contract work. Forwarders relying too much on fixed contracts risk slower response times, limited availability, and higher costs.

How freight exchanges help forwarders find carriers faster and reduce costs

Speed and access matter more than ever. Forwarders who can quickly compare offers, reach more carriers, and react in real time are better positioned to control costs and secure capacity. This is where digital freight exchanges like Trans.eu play a key role.

With access to over 25,000 verified carriers across Europe, Trans.eu allows forwarders to find available capacity faster, compare multiple offers, and work directly with carriers instead of through intermediaries.

This cuts unnecessary margins, improves transparency, and helps forwarders respond to market changes as they happen.

How to reduce transport costs and secure capacity in a volatile market

Fuel prices may be outside your control, but your sourcing strategy is not.

Forwarders who expand their carrier network, reduce reliance on intermediaries, and use real-time tools to compare rates can protect their margins and maintain access to capacity. Those who do not risk paying more, reacting slower, and losing competitiveness.

Fuel is expensive enough already. Paying two margins on top of it is no longer sustainable.

Register on Trans.eu and start working directly with carriers today.

Q&A: Fuel prices, freight exchange, and transport costs

Why should forwarders use a freight exchange during fuel price increases?
Freight exchanges provide access to a large pool of carriers, allowing forwarders to compare offers in real time and secure better rates when the market is volatile.

Can working directly with carriers reduce transport costs?
Yes. By removing intermediaries, forwarders avoid paying additional margins and gain better visibility into real market pricing.

Why are contract rates less effective during fuel price volatility?

Contract rates are fixed and adjust slowly, while fuel prices and carrier rates can change daily. This creates a gap that reduces forwarder profitability, which the spot market can help address.