Delivery Costs Rise 9% for Logistics Operators Yearly
Logistics operators should prioritize reliability over speed as rising costs begin to outpace revenue for most businesses.
Updated on Oct. 26, 2026 in Remote Work
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Logistics operators face a significant margin squeeze as 96% of surveyed companies report rising delivery costs. According to a new report from FarEye, delivery expenses rose by 9% annually, often outpacing revenue growth for most businesses.
Why it matters
Rising logistics costs are forcing operators to choose between prioritizing customer reliability over speed while grappling with the challenge of delivery growth exceeding income. This environment necessitates a closer look at how logistics investments translate into actual profitability.
A report from FarEye tracking over 4,000 data points across 500 companies shows delivery costs rose by 9% year-over-year. Currently, 96% of logistics operators report an increase in cost per delivery, with 76% of firms seeing costs grow as fast or faster than their revenue.
The players
FarEye
A provider of intelligent delivery management software that helps companies automate and optimize their logistics operations.
The details
Operators are shifting their service models to combat these costs, with 63% now prioritizing delivery reliability and only 11% focusing on speed. To manage expectations, 27% of firms have started displaying precise delivery dates before checkout, while 43% offer expedited shipping. Technology adoption is high, with 69% of firms implementing AI to optimize operations, though only 18% have reached the stage of full-scale deployment.
Timeline
2026: FarEye released the Eye on the Last Mile EMEA report.
Market Landscape
This data update follows insights presented at the Last Mile Leaders EMEA 2026 summit in Amsterdam. It marks a departure from speed-centric delivery models toward a focus on reliability amid sustained cost pressures.
Operators should benchmark their cost-per-delivery increases against the 9% industry average to identify potential efficiency gaps. Evaluate if current customer-facing delivery promises are undermining margins given the current trend of costs outpacing revenue.
The takeaway
The data confirms that operational reliability has overtaken speed as the primary competitive lever for last-mile delivery. Review your current shipping cost structures to ensure that expedited or guaranteed delivery offerings are not eroding your net margins.
Further reading
For more on industry shifts in logistics, visit our section on Remote Work.
Live Poll
Do you trust that online retailers are transparent about their delivery costs and schedules?
