German logistics firms face collapse as insolvencies surge in 2024
Germany’s transport and logistics sector is facing growing financial strain. Rising costs, slim profits, and delayed payments are pushing many firms to the brink. New figures show insolvencies and payment defaults are both on the rise. In 2024, 469 logistics companies filed for insolvency, including 19 with annual revenues over €10 million. This marks a 5.6 percent increase compared to the previous year. Many firms operate on profit margins below three percent, while labour and fuel costs keep climbing.
The industry’s cash flow problems are worsening. Companies often pay for fuel upfront but wait around 60 days for client payments. High diesel prices and pre-financing costs are hitting small and medium-sized freight forwarders the hardest. One in four of these firms is now considered at risk, according to credit insurer Atradius.
Payment defaults in early 2025 have already surpassed the five-year average. Beyond financial pressures, the sector struggles with a shortage of drivers, costly digital upgrades, and competition from cheaper Eastern European providers. The crisis in logistics is expected to have wider effects. Food prices could rise by up to ten percent in the near future due to higher energy and transport costs. Without relief, more firms may collapse, further disrupting supply chains across the country.
