European logistics companies grapple with declining freight rates as overcapacity and weak demand compress margins. Container shipping rates from Asia to Europe drop 35% year-over-year, while road freight rates decline 12% in Q3 2025. Major carriers including DHL, DSV, and Kuehne+Nagel report profit warnings as price competition intensifies amid economic uncertainty. Lower freight costs benefit shippers with reduced logistics expenses, improving landed costs for European warehouses. However, service quality may decline as carriers cut costs. Recommend locking in long-term contracts at favorable rates while market remains soft. Monitor carrier financial stability to avoid service disruptions.
Logistics Impact
Lower freight costs benefit shippers with reduced logistics expenses, improving landed costs for European warehouses. However, service quality may decline as carriers cut costs. Recommend locking in long-term contracts at favorable rates while market remains soft. Monitor carrier financial stability to avoid service disruptions.
European logistics firms face impact from falling freight rates | Reuters