The cost of diesel is putting enormous pressure on hauliers, and this isn’t just another headwind. Fuel accounts for around a third of operating costs, and industry estimates suggest the increase is adding roughly £300 per week per truck.
Ryan Yu, Vice President of Product at Samsara, told us:
For many hauliers, there is very little room to absorb these increases. In fact, research from the RHA found that only 1 in 10 operators can pass the increase on in full, while 8 in 10 are absorbing at least some of the additional cost and squeezing their margins. This puts already tight margins under even greater pressure, and operators are now having to scrutinise planned routes, fuelling decisions and the wider supply chain to minimise fuel costs wherever they can.
“To try and counteract this, we’ve been working with our customers to better understand total and recoverable fuel spend. In the US alone, we’ve identified $2 billion of recoverable fuel spend, with idling, driver behaviour, fuelling at the wrong station and fraud all creating significant leakage. One of the biggest changes we’re seeing is that fuel is moving from something businesses reconcile at the end of the month to a financial KPI they actively manage week by week.
“This continued focus on getting more from every litre matters, because there is no overnight alternative to diesel for many fleets. There is, of course, an understandable argument that fleets should simply switch to EVs. But the reality is more complicated, overhauling a fleet requires significant investment, and without reliable charging infrastructure along the routes hauliers actually operate, the economics may not stack up. Rather than treating electrification as an all-or-nothing decision, operators should start with targeted pilots on routes where vehicle utilisation, charging availability and fuel savings offer the clearest return on investment.”
Record High, Dirty Fuel
Jamie Reid, Associate Director of UK Road Freight at forwarder and logistics provider Baxter Freight, is warning UK shippers that diesel prices have climbed to their highest level since 2022, putting further pressure on hauliers and the businesses whose goods they move.
With fuel now at its highest level in months as global conflict strains energy and shipping supply, diesel remains the single biggest variable cost in road freight. Already-thin haulage margins leave little room to absorb the increase, so it moves down the chain as higher fuel surcharges on UK and UK-EU road freight.
For cross-border supply chains, the impact can extend beyond the road element of a movement. Many UK-EU movements depend on ferry crossings, where operators are also facing their own fuel and energy cost pressures, meaning rising costs can affect both the road and sea elements of the transport chain.
Jamie explains what UK businesses need to know:
Diesel is the single biggest variable cost in road freight, so when it climbs like this, there is nowhere for a haulier to hide. Margins in UK haulage are already thin, and a sustained price rise doesn’t get absorbed. It moves down the chain as fuel surcharges, and the shipper pays it in the end
Key points UK shippers need to be aware of include:
- Diesel sets the surcharge: When the diesel price climbs and holds, road freight fuel surcharges rise with it. Shippers treating the increase as a short-term spike to wait out are the ones most exposed if it doesn’t fall back.
- Look at the whole transport network: Businesses cannot control fuel markets, but they can take steps to improve efficiency, increase visibility and reduce unnecessary cost throughout their transport network. Reviewing how and where goods are moved, rather than focusing solely on individual services such as consolidation, can help businesses manage rising costs.
- Consolidation can cut wasted cost: Moving part loads on their own means paying to move empty space. Consolidating freight so vehicles run fuller reduces the fuel cost carried per shipment and lowers direct exposure to the diesel price, where the service is suitable.
- Rail and multi-modal reduce diesel dependency: Shifting suitable traffic onto rail where the lane supports it cuts the diesel you burn. It is not a switch to flip mid-crisis, which is why the planning needs to happen while the pressure is visible.
- Ferries add another cost consideration for UK-EU movements: Many movements between the UK and Europe depend on ferry crossings, meaning fuel and energy costs can affect both the road and sea elements of the journey. Understanding the full transport journey is increasingly important when looking at overall freight costs.
- Additional costs for cross-border freight: There are also increases in War Risk Charges from both shipping lines and marine insurers as vessels face threats of attack. This adds another layer of cost pressure for businesses moving goods between the UK and Europe.
- UK-EU corridors face a double squeeze: The same lanes already carry extra cost and complexity at the border. A sustained fuel rise adds further pressure to corridors that have little slack left in them.
- Why action is needed now: Fuel-saving measures, changes to transport strategy and modal shifts take time to set up. Businesses that review their logistics strategies and supplier relationships while diesel is high are better positioned to manage volatility than those that react once costs have already risen.
Reid continues:
The mistake shippers make is treating a fuel spike as something to wait out. When diesel resets higher and stays there, the businesses that keep their costs under control are the ones that have already looked at how they move freight, not just what they pay for it. Consolidating loads and shifting the right traffic onto rail both cut your exposure directly, and the time to plan them is now, while the pressure is visible
Baxter Freight has extensive experience helping businesses control freight costs and build resilience across road, rail and multi-modal networks, keeping goods moving efficiently between the UK and EU despite volatile fuel prices and tight capacity.
For businesses trading with Europe, understanding the full transport journey is becoming increasingly important. Rising costs can affect not only the road element of a movement but also ferry crossings and other parts of the supply chain, making effective planning, strong carrier relationships and visibility of transport spend critical to maintaining cost control and service reliability.
