In cities, logistics is a key part of the mobility system, with freight transport making up on average 25% of traffic in cities, while taking up 40% of the road space, and generating 40% of transport-related emissions (ICLEI). Often, urban logistics and freight vehicles commonly carry loads that are below full capacity, since much of urban logistics is centred around the last- or first- mile which has a strong preference for speed and convenience. This therefore means that more vehicles are on the streets, contributing to increased emissions, congestion and air pollution in urban areas.

Optimisation of urban logistics systems can reduce the total quantities of vehicles on the roads and associated emissions and congestion. In addition to this, cities that are intrinsically linked to a port can optimise the incoming freight, the logistics of unloading, before such loads enter the urban mobility system. One such example is shared logistics systems that pool resources intelligently via digital systems that can match available load capacity with demand to minimise the total quantity of kilometres travelled and the number of vehicles required. Furthermore, decentralised distribution centres throughout cities can act as hubs for low-carbon and non-motorised logistics vehicles and achieve similar benefits in reducing the number of vehicles driving in cities, which can be particularly effective for last- and first-mile logistics.

Local governments can support such optimisation systems by providing financial and in kind aid to innovations and initiatives that are focused on improving the technologies and processes that underpin and enable urban logistics. To this end, cities can share real-time transport related data to optimise logistics routes and support such innovations. Finally, cities can also leverage regulations to establish a minimum load capacity for logistics vehicles entering (certain parts of) the city.