How Freight Costs Are Changing in 2025 in Australia - What you need to know…

The Australian freight industry is undergoing rapid change in 2025, with one of the biggest shifts being the rise and reshaping of freight costs. For businesses that rely on supply chains, logistics providers, or bulk freight deliveries, understanding these cost drivers is essential for staying competitive and protecting margins.

From fuel price volatility to labour shortages and sustainability initiatives, multiple forces are reshaping freight pricing nationwide.

Here are the seven biggest freight cost trends in 2025 and what they mean for Australian businesses.

1. Fuel Prices Still Dominate Freight Costs.

Fuel remains the single largest contributor to freight delivery costs.

• Global oil market fluctuations and domestic energy policies are driving uncertainty.

• Most carriers now apply fuel surcharges to manage rising costs.

• Long-haul and regional deliveries are especially exposed.

Tip: Monitor surcharge policies carefully and consolidate freight where possible to minimise impact.

2. Labour Shortages Driving Prices Up.

Australia’s ongoing shortage of drivers and warehouse staff continues to push logistics costs higher.

• Carriers are paying higher wages to attract and retain workers.

• Costs are being passed through to freight customers.

• Regional freight is feeling the greatest pinch.

Tip: Build long-term partnerships with providers to secure consistent service despite labour market challenges.

3. Speed Comes at a Premium.

Same-day and next-day delivery are increasingly expected by customers.

• Express and priority freight are now “the norm” in metro areas.

• While it boosts satisfaction, it also raises costs significantly.

Tip: Reserve express services for shipments that truly need them. Route the rest through standard or consolidated services.

4. Green Freight Is Growing.

Sustainability is no longer optional.

• Carriers are adopting electric vehicles, offsets, and eco-friendly packaging.

• Green freight often comes at a higher upfront cost.

• But it can enhance brand reputation and deliver long-term savings.

Tip: Position sustainability as a strategic investment in your supply chain future.

5. Technology Adds Both Costs and Value

Digital freight tools, from AI route optimisation to real-time tracking, are becoming industry standard.

• They improve transparency, reduce delays, and drive efficiency.

• But setup and adoption costs are often baked into customer rates.

Tip: Focus on the bigger picture: higher reliability and efficiency usually outweigh the extra fees.

6. Tolls and Infrastructure Levies Rising.

The expansion of toll roads and government levies is adding to freight bills.

• NSW, VIC, and QLD freight corridors are especially affected.

• Charges vary by route, vehicle, and cargo.

Tip: Use technology or work with partners who can identify the most cost-efficient freight paths.

7. Regional & Remote Freight Still Challenging.

Deliveries to rural and remote regions remain costly, and 2025 has amplified this.

• Limited carrier availability means fewer options.

• Rising fuel prices in remote areas compound the issue.

• Agriculture, mining, and regional retail are most affected.

Tip: Where possible, explore depot-to-depot delivery to reduce charges on remote shipments.

What This Means for Australian Businesses.

The cost landscape in 2025 highlights the need for proactive freight planning. Businesses can offset rising costs by:

• Comparing multiple freight quotes.

• Consolidating shipments into bulk loads.

• Leveraging technology for tracking and optimisation.

• Partnering with logistics providers who offer transparent, flexible pricing.

Managing freight costs is no longer just about trimming expenses; it’s about ensuring supply chain stability while still delivering customer value.

Stay Ahead with Deliver.

At Deliver, we help Australian businesses stay ahead of shifting freight economics. From bulk pallet deliveries to sustainable freight solutions and smarter route optimisation, our nationwide carrier network and real-time technology deliver cost-effective, reliable outcomes.

Looking to get ahead of freight cost changes?

Contact our team at Deliver today for a free-market cost comparison and discover smarter, more efficient logistics solutions tailored to your business.