ECG — 2026-03-09
News from ECG
The recent sharp increase in oil and diesel prices is placing significant economic pressure on the European finished vehicle logistics sector. ECG – the Association of European Vehicle Logistics – warns that many logistics service providers are currently facing rapidly rising fuel costs that cannot immediately be reflected in existing contractual mechanisms.
Fuel price adjustment mechanisms are a well-established practice within the industry to account for fluctuations in fuel costs between shippers and logistics providers. However, the frequency of these adjustments varies widely across the sector. While some contracts allow for monthly reviews, many operate on quarterly schedules and in certain cases adjustments occur only every six months.
Given the current volatility in energy markets, this creates a growing time gap between the fuel costs logistics providers must pay and the point at which contracts allow those costs to be adjusted.
“Fuel price increases affect operating costs immediately. When adjustment mechanisms only apply several months later, logistics companies are forced to absorb these costs in the meantime, which can place considerable pressure on liquidity and cash flow,” said Frank Schnelle, Executive Director of ECG.
ECG therefore encourages shippers and logistics providers in the FVL sector to temporarily increase the frequency of fuel price reviews and adjustments during the current period of market volatility.
A weekly review and adjustment of fuel price mechanisms would help reduce the time lag between rapidly changing fuel costs and contractual adjustments. This would allow exceptional price movements to be reflected more accurately and fairly between logistics providers and their customers.
“Finished vehicle logistics is built on long-term partnerships between manufacturers and logistics providers. In times of exceptional fuel price volatility, closer and more frequent coordination is essential to ensure that sudden cost increases do not destabilise logistics operations,” Schnelle added.
ECG will continue to closely monitor developments in energy markets and their implications for the finished vehicle logistics sector.
Note to editors:
ECG is the established European platform for the outbound automotive logistics sector bringing together logistics service providers, manufacturer logistics managers and suppliers to the sector. ECG aims to facilitate non-commercial collaboration between member companies and assist them in sharing best practices in many operational areas, especially the harmonisation of operational standards.
For more information, please contact:
Frank Schnelle
Executive Director
ECG – The Association of European Vehicle Logistics
+32 2 706 82 80
info@ecgassociation.eu
www.ecgassociation.eu