Road Freight: The Unsung Workforce of Trade Battles Rising Costs and a Shrinking Pool of Drivers
Road freight – Supermarket shelves often seem to empty faster than expected, sparking widespread concern among consumers. Yet, few pause to consider the unseen logistics that sustain the flow of goods from production to purchase. Road freight, the backbone of European commerce, moves approximately 80% of inland cargo and plays a critical role in the EU27’s economic framework, contributing around 3.75% to total GDP. Despite its pivotal role, the industry remains largely unnoticed, as Lyall Cresswell, founder and CEO of the Transport Exchange Group (TEG), notes in a recent interview. “It’s probably the largest industry you don’t really know much about,” he remarked during a session of *The Big Question*, a platform where Euronews Business explores pressing issues with industry leaders.
The Economic Weight of Fuel Costs
With the European freight and logistics market valued at $1475.88bn (€1263.66bn) in 2025, road transport alone accounts for over €400 billion in annual turnover. TEG, which connects more than 10,000 businesses across the continent, anticipates managing around 3 million freight loads this year. However, the sector’s fortunes are increasingly tied to volatile fuel prices, a challenge that has grown more pronounced as global instability reshapes supply chains. “Fuel makes up roughly 30% of a transport company’s expenses,” Lyall explained, highlighting how even minor fluctuations in petrol costs can destabilize operations. This is particularly problematic for an industry already operating on slim profit margins, where cash flow is a constant battle. Companies often lock in fuel payments before receiving revenue for their services, creating a financial strain exacerbated by rising costs.
“Fuel represents approximately 30% of the cost of a transport company.”
The direct link between fuel prices and retail costs is undeniable. As petrol prices climb, the prices on supermarket shelves follow suit, pushing consumers to adjust their budgets. But this isn’t the only threat to the industry’s stability. The driver shortage, a long-standing issue, has intensified in recent years, with the number of unfilled positions nearly doubling between 2024 and 2025. In 2024, 233,000 driver roles remained vacant, a figure that rose to 444,000 by 2025. Some forecasts predict the gap could widen further, reaching up to 745,000 unfilled positions by the end of the decade. This shortage is not just a logistical hurdle—it’s a crisis that could disrupt the entire supply chain.
An Aging Workforce and the Strain on Recruitment
The driver workforce is experiencing a significant demographic shift, with Lyall Cresswell emphasizing that “the driver workforce is ageing very substantially.” In Germany, for instance, nearly half of all truck drivers are over the age of 55, a trend mirrored in other European nations. This aging trend reflects broader challenges in the labor market, where the traditional role of a long-haul driver—often requiring weeks away from home—has made the profession less appealing to younger generations. “The nature of the job has changed over time,” Lyall noted, “but the demand for skilled labor remains high.”
“The driver workforce, unfortunately, is ageing very substantially.”
Compounding the issue is the lack of investment in modern infrastructure. While efforts have focused on improving driver safety through innovations like active noise cancellation and adaptive seating, Lyall argues that foundational issues—such as inadequate parking facilities and poorly maintained roads—remain unaddressed. “Without safe and secure parking options, it’s harder to attract new drivers,” he said. These challenges are part of a larger problem: the industry’s ability to retain and recruit talent is being tested by both economic pressures and structural inefficiencies.
With over 3 million people employed directly in road freight and an additional 2.5 million in related warehousing and support roles, the sector is a vital employment engine. Yet, the growing shortage of drivers threatens to slow down this engine, potentially leading to delays in product delivery and higher costs for businesses. The ripple effect is already visible, as companies scramble to hire, offer competitive wages, and invest in technology to mitigate the impact of the labor gap.
Technology as a Potential Lifeline
Lyall Cresswell believes that technological advancements could offer a transformative solution to the industry’s challenges. He points to AI-driven route planning as a key innovation, suggesting that it could enable haulage firms to maximize efficiency with fewer resources. “AI-powered systems could help us do more with less,” he stated, envisioning a future where predictive analytics and automation reduce the strain on human labor. This idea aligns with broader efforts to enhance driver comfort and safety, such as lane assist technologies and ergonomic vehicle designs.
“I think what will happen at some point is point-to-point transports along the autoroute, along the motorway between distribution centres, I can see that happening.”
While automation may not replace human drivers entirely, Lyall is optimistic about the role of autonomous vehicles in specific segments of the supply chain. “Driverless trucks could be a game-changer for long-haul routes between distribution hubs,” he suggested. However, he also acknowledges that the “first mile” and “last mile” of delivery—critical for reaching customers—will take longer to automate. “These last-mile challenges involve navigating urban environments and interacting with local systems, which are more complex,” he explained.
Despite the promise of technology, Lyall remains cautious about its immediate impact. “It’s not a silver bullet,” he said, stressing that solutions must be holistic. This includes addressing workforce aging by attracting younger professionals to the sector and investing in infrastructure that supports both current and future drivers. The conversation around automation also raises questions about the future of the industry: could driverless trucks ultimately redefine the role of human drivers, or will they simply ease the burden of an already overworked system?
The Path Forward: Balancing Innovation and Tradition
As Europe grapples with the dual crises of rising fuel costs and an aging driver base, the road freight industry stands at a crossroads. Lyall Cresswell’s insights underscore the need for a balanced approach—one that leverages technology without abandoning the human element. “We need to make the job more attractive, not just through pay but through improved working conditions,” he said. This sentiment echoes a growing recognition that the future of the industry depends on both innovation and adaptation.
For consumers, the consequences of these challenges are tangible. Empty shelves, delayed deliveries, and higher prices are all potential outcomes of a strained logistics network. Yet, the industry’s resilience is evident in its ability to adapt to changing conditions. Whether through AI-driven optimization, investment in infrastructure, or new recruitment strategies, the road freight sector is poised to navigate the complexities of a rapidly evolving market. As Lyall concluded in his interview, the industry’s silent contributions to trade will remain essential—provided it can overcome the hurdles that threaten its stability.
The *Big Question* series from Euronews Business continues to highlight the critical issues shaping Europe’s economic landscape. This episode, featuring Lyall Cresswell, provides a glimpse into the challenges facing one of the continent’s most vital industries. To learn more about the logistics sector and its future, viewers can watch the full discussion above, which delves deeper into the intersection of tradition, technology, and trade in Europe.
