# price escalation clause

*Last updated: 2026-06-26*

> A price escalation clause is a contractual provision that automatically adjusts agreed freight rates or logistics charges in line with predefined cost or price indices, such as fuel surcharge benchmarks or labour cost indices.

A price escalation clause is a contractual provision that automatically adjusts agreed freight rates or logistics charges in line with predefined cost or price indices, such as fuel surcharge benchmarks or labour cost indices. It is standard practice in medium-term transport and logistics contracts, where fixed pricing would expose one or both parties to significant input-cost risk. The escalation formula specifies a base date, index components, adjustment intervals, and any applicable caps or floors. Unlike a fixed-price agreement, it allows rate adjustments without formal renegotiation; unlike a hardship clause, it activates on ordinary market movements rather than exceptional disruptions.

**Source:** [https://de.wikipedia.org/wiki/Preisgleitklausel](https://de.wikipedia.org/wiki/Preisgleitklausel)

## Quick Facts

| Property | Value |
|---|---|
| Term | price escalation clause |
| Language | EN |
| Word count | 99 |
| Last updated | 2026-06-26 |
| Source | https://de.wikipedia.org/wiki/Preisgleitklausel |

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