Germany's LTL logistics costs surge despite stagnant shipment volumes in 2025
Costs in Germany's less-than-truckload (LTL) logistics sector have risen again, despite little change in shipment volumes. The latest Groupage Cost Index from the German Freight Forwarding and Logistics Association (DSLV) shows a 3.4 percent increase in shipment-related process costs for the second half of 2025 compared to the previous year. Published twice yearly, the index tracks operational trends in parcel logistics and highlights ongoing financial pressures on the industry.
Labour costs remain the largest expense, accounting for about 51 percent of shipment-related process costs. They climbed by 3.7 percent, further squeezing profit margins. Meanwhile, toll and fuel costs stayed relatively stable, helping to offset some of the overall rise.
Operating costs jumped by 4.2 percent, largely due to investments in new technologies and infrastructure. Pallet handling expenses saw an even sharper increase of 6.4 percent, driven by a 21 percent surge in pallet prices.
The number of transshipment hubs included in the analysis grew from 22 to 28. This expansion reduced the average number of shipments per depot from 1,200 to 980—a drop of 3.3 percent. Despite these adjustments, shipment volumes in LTL networks remained mostly flat, with a slight year-on-year decline.
The DSLV has warned that further cost reductions through internal efficiency measures alone are unlikely. The association's findings suggest that external factors, such as rising material and labour expenses, are now the primary drivers of increasing costs.
The latest DSLV report confirms that LTL logistics firms face persistent cost pressures, even as shipment volumes stagnate. With labour and pallet handling expenses rising sharply, companies may need to explore new strategies beyond efficiency improvements. The industry's ability to adapt to these financial challenges will shape its performance in the coming year.
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