The transport, forwarding, and logistics (TSL) industry is facing unprecedented pressure. Rising operating costs, an evolving European regulatory landscape, and the growing need to adopt sustainable business practices are reshaping the market. In such a dynamic environment, companies need to act now.

We spoke with Marlena Ołdakowska-Czajkowska, Head of European Transport at BGT Group, about how businesses can adapt to these changes, where genuine cost-saving opportunities lie, and why logistics consulting has become a strategic tool for long-term growth.

The TSL industry is operating in an increasingly dynamic environment. What factors are currently driving the cost of road transport?

The market remains highly volatile, with operating costs continuing to rise due to several key factors.

Total Cost of Ownership (TCO)

Although inflation has eased, the overall cost of operating a transport fleet—including vehicle maintenance, equipment, and cargo insurance—remains high. Elevated interest rates have significantly increased the total cost of ownership, particularly for carriers financing their fleets through leasing.

Fuel Prices and Geopolitical Uncertainty

Fuel prices remain high and continue to fluctuate in response to geopolitical developments, armed conflicts, and government policy decisions, making transport costs increasingly difficult to predict.

Regulations and Road Tolls

Frequent regulatory changes, new road toll schemes, and operational disruptions such as temporary border closures create additional uncertainty and force transport providers to continuously adjust their pricing.

Does rising operating expenditure automatically translate into higher freight rates?

The situation is far more complex.

Three years ago, freight rates increased sharply. However, in early 2023, despite continued inflation, demand for transport services began to decline as economic growth slowed, leading to downward pressure on freight rates.

As a result, many carriers have shifted away from long-term agreements in favour of shorter contracts lasting three to six months or have introduced fuel surcharge mechanisms that allow pricing to adjust more quickly to market conditions.

When it comes to factors companies can control, what cost-saving strategies does BGT Group recommend?

Reducing logistics costs begins with improving operational efficiency. The most effective measures include:

Reducing Empty Miles

Empty running remains one of the biggest sources of unnecessary cost. The cost per kilometre is virtually the same whether a truck is carrying cargo or travelling empty.

We use advanced transport planning systems to identify return loads and backhaul opportunities, helping customers maximise vehicle utilisation and reduce unnecessary mileage.

Improving Fuel Efficiency

While no company can influence global fuel prices, fuel consumption can be managed effectively.

We work with partners who provide eco-driving training, as efficient driving techniques can reduce fuel consumption by several percentage points while also lowering vehicle wear and emissions.

Investing in Modern Technology

We continuously invest in advanced transport planning and management systems that automate routine processes, optimise transport operations, and significantly reduce errors caused by manual workflows.

BGT Group provides comprehensive logistics consulting services. What does that involve in practice?

Logistics consulting is a comprehensive assessment of a company's existing logistics processes with the objective of identifying opportunities for improvement.

Our consultants are experienced industry professionals who help customers achieve three key objectives:

• reduce logistics costs;
• improve operational efficiency;
• enhance customer service by streamlining processes and shortening lead times.

In one of our recent projects, a combination of improved route planning, increased use of backhaul opportunities, and cooperation with trusted logistics partners enabled a customer to reduce transport costs by 10%.

How do you see the TSL industry evolving over the next five to ten years?

The future of transport and logistics will be shaped by two closely connected trends that will require businesses to rethink their long-term strategies: sustainability and digital transformation.

First, environmental sustainability is no longer simply a corporate responsibility initiative. It has become both a regulatory requirement and a business necessity.

Second, digitalisation has become the most effective way to address rising compliance costs and the ongoing shortage of skilled labour. Companies will increasingly need to implement modern technologies across every stage of their operations—from transport planning to administrative workflows.

Ultimately, the industry is moving towards logistics that are more sustainable, more digital, and more cost-efficient. Companies that successfully combine sustainable business practices with advanced technology will be best positioned to remain competitive and achieve long-term growth.

Conclusion

The transport and logistics sector is undergoing one of the most significant transformations in its history. Rising costs, stricter regulations, and growing customer expectations are redefining the way supply chains are managed.

Businesses that proactively optimise their logistics operations, embrace digital technologies, and invest in sustainable transport solutions will not only reduce costs but also strengthen their resilience and build a lasting competitive advantage in an increasingly demanding market.