For years, the road freight market has been under sustained pressure, shaped by a combination of post-Brexit structural change, rising costs and geopolitical disruption.
At the same time, there are early signs that the UK may begin to move closer to Europe in practical, trade-focused ways, in a shift that could have meaningful implications for cross-border logistics.
For now, however, the market remains challenging.
Since Brexit, UK–EU road freight has been defined by increased friction. New customs processes, regulatory checks and border systems have added cost, complexity and delay, particularly for groupage and mixed loads.
The impact is clear in the data. Road freight volumes are estimated to be down by over 10% since Brexit, reflecting weaker trade flows and reduced demand. UK exports to the EU have also taken a structural hit, with studies pointing to a decline of around 16%.
At the same time, the number of operators has fallen sharply. Between 2021 and 2025, 2,051 UK road haulage companies became insolvent, which is almost double the 1,068 recorded in the previous five-year period. That equates to nearly eight hauliers exiting the market every week.
This combination of lower volumes and higher costs has fundamentally reshaped the sector. Capacity has tightened, margins have come under pressure, and the market has consolidated around stronger, more resilient operators.
Rising costs and the impact of the Iran war
The Iran conflict has added a new layer of pressure at a time when the sector was only just stabilising. Fuel costs, which can account for up to 30% of operating expenses, have risen sharply, with industry bodies warning this represents a structural shift rather than a temporary spike.
Across Europe, operators are now dealing with sustained fuel volatility, tightening supply and increasing financial strain. The knock-on effects are being felt across the entire road freight ecosystem, from pricing and capacity to investment decisions and fleet utilisation.
At the same time, additional cost pressures continue to build. Driver shortages remain unresolved, pushing up wages and limiting flexibility. New tolling regimes are increasing the cost of operating across key European markets. Regulatory changes, including evolving border systems on both sides of the Channel, are adding further administrative burden.
This is not just a UK issue. Across Europe, the road freight market remains fragile, with growth limited to just 0.5%, with many key markets recording declines.
The short-term outlook is closely tied to energy markets, geopolitical developments and spiking fuel costs. In this environment, many operators are focused on protecting margins and maintaining utilisation rather than expanding. Investment is being delayed, networks are being rationalised, and risk appetite remains low.
Signs of a closer UK–EU relationship
Against this backdrop, there are early signs of a shift in the UK–EU relationship. As the Trade and Cooperation Agreement comes up for review, both sides are exploring ways to reduce friction and improve trade flows.
Potential developments include veterinary and SPS agreements to streamline border checks, deeper customs cooperation and more structured alignment on energy and climate policy. For road freight, these are not abstract political discussions, they directly influence transit times, costs and reliability.
Even incremental improvements could have a meaningful impact, helping restore confidence, support volume recovery and reduce operational complexity.
Metro’s European division bucks the trend
While much of the market is under pressure, Metro’s European road freight division is moving in the opposite direction.
The division has been growing at 40% per year, making it Metro’s fastest-growing business unit. This performance stands in sharp contrast to the wider market, where volumes are flat or declining and operators are exiting the sector.
This growth has been driven by a clear and deliberate strategy. Metro has invested in building a strong European network, with high-quality groupage services into key markets including the Netherlands, Turkey, Poland and Iberia, alongside established strengths in France and Germany.
The business offers a balanced mix of less-than-truckload (LTL) and full-truckload (FTL) solutions, with a range of equipment, security and service options, giving customers flexibility as demand patterns shift. Crucially, the focus is on tailored, customer-led solutions, adapting routing, transit times and documentation processes to meet specific requirements.
In a more complex post-Brexit environment, this approach is proving highly effective. Rather than avoiding complexity, Metro is helping customers navigate it, smoothing customs processes, reducing risk and maintaining flow across European supply chains.
As the European road freight landscape continues to evolve, Metro provides the expertise, network strength and proactive approach needed to keep goods moving. Helping customers manage complexity, control cost and unlock opportunity across UK–EU trade.
EMAIL our Managing Director Andy Smith to learn how we can secure your European supply chains.
