German logistics firms face insolvency surge as costs and delays bite

The transport and logistics sector in Germany is facing growing financial strain. Rising costs, tight margins, and delayed payments are pushing many firms towards insolvency. Experts now warn that one in four small and medium-sized companies could be at risk.

Last year, 469 logistics businesses in Germany filed for insolvency—a 5.6 percent increase from 2024. Among them were 19 firms with annual revenues exceeding €10 million. The sector’s struggles stem from a mix of high diesel prices, soaring pre-financing costs, and profit margins often below three percent.

Many companies must pay for fuel upfront but wait around 60 days for client payments. This cash flow gap adds to the pressure, particularly for smaller freight forwarders. Meanwhile, labour costs keep climbing, squeezing already thin profits. Economic forecasts have also darkened. Oxford Economics now expects global transport and logistics growth of just 2.4 percent in 2025—one percentage point lower than earlier predictions. If disruptions in the Strait of Hormuz last more than six months, growth could grind to a halt entirely. Atradius, a trade credit insurer, has flagged that current government support measures fall short of addressing the sector’s challenges. Without stronger intervention, the outlook for many firms remains uncertain.

The insolvency rate in German logistics has risen, with small and medium-sized companies bearing the brunt. Fuel costs, payment delays, and weak profit margins continue to strain the industry. Without further relief, more businesses may face financial collapse in the coming year.