By Maria Kalamatas | July 21, 2025

Section: International / Business & Market Outlook

London, July 21 — Freight forwarders worldwide are bracing for a wave of pricing challenges as rising fuel costs begin to filter through transportation contracts, raising concerns about margins and client retention in the second half of 2025.

“Fuel is one of the most unpredictable factors in our business, and it’s moving upward again,” said Richard Hale, commercial director at GlobalLink Logistics, a UK-based forwarding group. “Every carrier is revisiting their surcharge structures, and that creates tension across the entire supply chain.”

Rising costs hit every mode

Jet fuel prices have climbed nearly 9 percent since early June, while bunker fuel for ocean carriers has risen close to 7 percent over the same period. Trucking companies across Europe and North America are also warning of imminent diesel surcharges to offset their costs.

“Shippers understand the math, but no one wants to see invoices spike mid-quarter,” Hale noted. “We’re already fielding calls from clients asking how to lock in rates.”

Forwarders caught in the middle

Many freight forwarders are trying to shield key customers by absorbing part of the cost increase or restructuring contracts to spread charges over longer periods. But with rates on core trade lanes already competitive, few can hold out for long.

“Margins were thin even before this,” said Nadia Benassi, chief operating officer at ItalTrans Freight Solutions. “Now we’re looking at creative ways to maintain service levels without pushing everyone to renegotiate.”

Search for stability

Some logistics companies are exploring alternative fuel hedging strategies, while others are working with carriers to set temporary caps on surcharges tied to oil price fluctuations.

“It’s about finding a balance between predictability and flexibility,” Benassi explained. “Clients want stability, and so do we.”

Outlook for the rest of the year

Market analysts expect the cost pressure to continue into Q4, particularly if global oil prices remain volatile and consumer demand holds steady. While most forwarders say they can manage the increases, some predict consolidation in the sector if smaller firms struggle to adapt.

“Those with scale and flexible networks will weather this better,” Hale said. “For everyone else, the next few months will be a real test.”

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