News / European haulage players must innovate and cut costs to survive

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European road freight transport is expected to register “moderate growth” this year, according to a recent report from intelligence company Upply.

A large driver of this is a projected demand increase from a GDP growth rate of 1.2% for the euro area, 1.4% for the European Union, and a drop in the unemployment rate from 6.3% last year to 6.1% in 2026 in the euro area. 

The European Central Bank projects household consumption to “regain some momentum” in the coming quarters, with annual growth rates of around 1.2% forecast for 2026-2028.  

Source: Upply

Upply reported that both the automotive sector “which represents a significant share of road transport flows in Europe”, and the ecommerce sector will enjoy a bump in 2026.  

In Germany, the automotive market is expected to grow by 2%, with around 2.9m new vehicles sold. Across Europe (EU + UK, Norway, Switzerland), sales are expected to reach 13.4m, an increase of 1% on 2025, but still far from the 15.8m of 2019. 

The B2C ecommerce market is expected to exceed €800bn, according to Upply, up 7% compared with 2024. France is expected to cross the threshold of €200bn in turnover, with 41.6m French people buying online.  

“This growth means additional volumes,” said the data company, estimating an increase in parcel flows of 10%-20% in countries such as France and Germany.  

“Transport operators will meet this demand, despite rising operating costs and increasingly stringent environmental requirements,” it said.  

Indeed, Upply warned that even though demand was looking up, the supply of transport “remains under control” with the pressure on costs “significant”, which it explained would limit the impact of low volumes on the evolution of freight rates. 

In the UK, the Road Haulage Association (RHA) noted that recruitment and retention, and net zero readiness remained issues for the road freight sector. 

It highlighted that insolvency numbers in road freight “tell a sobering story”, its data showing some 400 UK hauliers went out of business last year, 470 the year before and more than 500 in 2023.   

The RHA estimates 60,000 drivers are needed each year over the next five years to keep up with demand. 

Further, the its recent cost report showed operating expenses jumped 5.91% last year and profit margins averaged at 2%. 

“Many firms faced tough decisions in 2025: delaying investment, consolidating operations and prioritising survival,” RHA MD Richard Smith told The Loadstar. “Whilst insolvency rates have slowed slightly and there’s room for optimism, they still remain too high. Ever-rising running costs continue to make trading more expensive,” he added.  

Mr Smith urged that in 2026, lowering the cost of doing business “must be a UK government priority”. 

“We want decision-makers to work collaboratively and support industries like ours that are crucial to the health of the wider economy,” he said. 

One large expense looming for hauliers is net-zero fleet pressure – zero-emission vehicle affordability remains a barrier for many haulage businesses. 

Mr Smith added: “We’re clear that the pathway to decarbonising must be realistic and viable. This hinges on two key issues: infrastructure in place and vehicle affordability.” 

In an RHA survey last year, 70% of HGV operators said they had “no current plans” to add zero-emission vehicles to fleets. 

Upply summarised: “2026 and the coming years will be crucial for Europe, which will have to reconcile industrial competitiveness, ecological transition, and technological sovereignty in the face of American and Asian competition.  

“Economic players that manage to innovate while controlling their logistical and regulatory costs will be best positioned to take advantage of this fragile recovery.”