More than half (56%) of the world’s population lives in cities. In North America and Europe, the number increases to almost 80%. Though cities occupy just 3% of global land mass, they’re responsible for 75% of global energy consumption and CO₂ emissions.

The goods we consume today require complex logistics processes in urban areas. If not planned adequately, they can negatively affect urban sustainability, in the form of air pollution, traffic congestion, noise, vibrations, safety risks, high prices of goods and services and inefficient consumption of resources. Urban areas play a key role in determining a sustainable future.

With growing demand for home delivery and personalized products, the proliferation of small parcels is a persistent concern in city logistics. Existing logistics systems aren’t capable of meeting this need. Low levels of shipment consolidation result in inefficient use of delivery vehicles, with many empty vehicle trips.

To achieve sustainable logistics in urban areas, it’s necessary to reflect on all three pillars: economic, social, and environmental. Planners must consider the interests of all stakeholders, including logistics service providers, consumers, city residents and local authorities. Often these groups possess conflicting goals and ideals. There’s no one ideal solution for all.

Local authorities should play a key role in addressing conflicting goals, stimulating cooperation and solving logistics problems. However, local authority policies are often counter-productive, as they tend to strictly regulate or prohibit logistics activities in urban areas.

Logistics solutions aren’t universal; each region has its specific economic, demographic and spatial characteristics, and service providers vary significantly. 

On the positive side, the existing scientific literature is abundant with creative and potentially sustainable logistics solutions. Some of the most interesting and promising ideas are for flow consolidation through logistics centers, and the application of alternative transportation modes and eco-friendly vehicles.

Flow consolidation gathers the goods of different suppliers before entering the city, then efficiently distributes them among delivery vehicles (Figure 1). Examples of real-life applications of urban flow consolidation are evident in the Netherlands (Amsterdam, Utrecht), Japan (Tokyo), Germany (Essen), the United Kingdom (Bristol and London), Monaco, and Belgium (Brussels).

Figure 1. Delivery of goods in cities: a) without flow consolidation; b) with flow consolidation.

Replacing road transportation with other transportation modes (such rail, air and river) is one logical step toward achieving sustainable city logistics. Some good examples of this are the application of cargo trams in Dresden and Zurich; transportation by river in Utrecht, Amsterdam, Paris, and Lille; underground systems in China, and the use of drones (operated by Amazon.com and DHL).

Combining flow consolidation and alternative transportation modes has the potential of reshaping city logistics. The model greatly reduces the need for traditional ground delivery vehicles. It requires the creation of transshipment stations within the city zone, allowing for smaller, eco-friendly vehicles, or even on-foot delivery, in the last delivery phase (Figure 2).

Figure 2. Delivery of goods in cities: a) with rail transportation and eco-friendly vehicles; b) with river transportation and eco-friendly vehicles.

The development of such complex logistics systems is a challenge. It requires significant efforts from public authorities and service providers. To become economically feasible and sustainable, adequate infrastructure must be created, in the form of logistics centers, transshipment stations and rail infrastructure. There’s also an accompanying need for advanced information systems. In this way, alternative transportation modes within urban areas can better compete with road transportation. Such an infrastructure will set modern cities on a sustainable development path.

As city logistics undergoes rapid growth, so does the pace of innovation in sustainable urban areas. (Figure 3) COVID-19 has had a profound impact on logistic planning, and with the easing of the pandemic, innovation has bounced back with a renewed commitment to solving logistical challenges.

Figure 3. Source: custom analysis using Derwent Worldwide Patent Index (DWPI) from Clarivate. Timeline of sustainable logistics in cities’ innovation activity.

Overwhelmingly, activity in this area is coming from Chinese academic institutions. Nearly all the top 30 portfolios, based on patent count, are from those entities. Hefei University of Technology, Nanjing University and Zhejiang University of Technology are among the notable top academic players. Up to 83% of all innovations in urban logistics emanate from China.

A look at the distribution of patent ownership paints an even clearer picture (Figure 4). Academic and government institutions hold 37% of sustainable logistic patents in this area, well above the global average of 9%. Yet patenting activity related to sustainable logistics in urban areas is still in the early stages of development, with significant potential to be commercialized. 

Figure 4. Source: DWPI from Clarivate. Innovating organization type in sustainable logistics in cities.

Although China trumps other jurisdictions in terms of the sheer number and scale of academic institutions, there’s a lot to be said for state-driven initiatives like grants, expedited patent procedures and tax credits, which encourage innovation in sustainable logistics. Municipalities have a vested interest in improving these technological capabilities, and making use of available support for developing sustainable logistics infrastructure.

Milovan Kovač is a data analyst, Institute for Scientific Information, and Arun Hill is analytics consultant, with Clarivate.