In Europe, the transportation and logistics industry does much more than just get cargo from A to B. Our supply chain connects whole countries and cultures, bringing businesses to new customers and widening access to key public services. More than ten million people are employed in transport in Europe, and the sector contributes around 5% to EU GDP.

However, these numbers come at a cost. Transport emissions account for approximately 25% of all greenhouse gas emissions in the EU, a figure that’s been on the rise for decades. Between 1990 and 2022, emissions decreased across every major sector in the EU except for domestic transportation — which grew 20% in that time period.

All this means one thing: if Europe is going to reach its net-zero targets, then future-proofing the freight industry by embracing sustainable practices will be a key step to take.

The growing link between carbon emissions and supply chain disruption

Emissions aren’t just bad news for our environment, they’re catastrophic for supply chains too. Extreme weather events, which are becoming more frequent due to increased carbon emissions, remain one of the key causes of supply chain disruption in Europe. 

With 2024 being the continent’s hottest summer on record, it’s no surprise that we witnessed a number of large-scale disruptions last year. During an August heatwave, low water levels in the Rhine meant that cargo vessels couldn’t sail down the crucial shipping channel while fully loaded. Yet, only ten months earlier, the Rhine experienced a polar opposite extreme — when key sections of the river were closed to shipping due to high water levels caused by heavy rain and snow.

Extreme weather events damage the very infrastructure our supply chains rely on, destroy cargo, and even impact goods before they’ve entered the market. In 2023, two successive dry years led to a drastic reduction in olive oil harvest — which ultimately saw olive oil prices increase by a reported 70%. Not only did this hurt consumer wallets, it also made  olive oil a prime target for cargo thieves, further increasing supply chain disruption. Reducing transport emissions is therefore essential for an efficient and future-proofed supply chain.

The European Green Deal: turning intent into action

Approved in 2020 by the European Commission, the European Green Deal is a set of policy initiatives to make the EU climate neutral by 2050. Transport is a key focus of the Deal and, in 2023, numerous measures were proposed to make transportation and logistics more efficient and sustainable. This included:

• Cutting transport emissions 90% by 2050
• Strengthening rail infrastructure management
• Offering incentives for low-emission lorries
• Standardising emissions calculations

Of those measures, incentivising rail transport and decarbonising lorries will be crucial, as more than half of all freight in the EU is carried by road — which perhaps explains why road transportation made up 73.2% of the EU transport sector’s CO₂ emissions in 2022.

Another more recent development has been the EU’s corporate sustainability due diligence Directive, which came into force in July 2024. By establishing a corporate due diligence duty, the Directive aims to encourage companies to address human rights and environmental impacts throughout their entire value chain, and ensure that larger companies align with broader 2050 climate neutrality goals.

How the European freight market is evolving to be more sustainable

In response to today’s climate challenges, transportation and logistics businesses throughout Europe are implementing a variety of measures to help reduce carbon emissions. Let’s take a look at some of the most notable efforts: 

1. Changing fuel sources: Many European companies are making the move towards alternative fuels for their trucks, such as Volvo’s first ever electric-only truck and Scania’s natural gas-powered range. Dutch logistics company Simon Loos doubled its electric fleet last year with the purchase of 75 Mercedes-Benz eActros 600 trucks, another 50 of which were acquired by EUROTRACO as it invested in the largest electric fleet in Belgium. Volvo also reportedly sold 1,970 electric trucks over 16 tonnes in 2024 (although, admittedly, this was not an increase on the previous year).
2. Switching transport methods: As well as switching to alternative fuels, choosing a different transport method altogether can have a substantial impact. Rail and ocean are both comparatively low-emission transport methods, with some reports suggesting that swapping air freight for ocean freight could reduce emissions by 98% — a figure which could justify a slight reduction in delivery times.
3. Limiting last-mile emissions: The ‘last-mile’ contributes to around 30% of CO₂ emissions in a parcel’s journey, with inefficient delivery vehicles, undercapacity loads and numerous drop-offs all contributing to such a high figure. However, these issues could largely be resolved by encouraging consumers to opt for out-of-home deliveries, where parcels are stored at a single collection point (e.g. Amazon Lockers)
   
4. Reducing deadhead miles: In 2020, empty vehicles accounted for 20% of all road freight transport in the EU. Not only do these ‘deadhead miles’ increase operational costs, they contribute to emissions — without any tangible cost benefit. To reduce such unnecessary journeys, consider optimising delivery routes in real-time, consolidating freight with other businesses, or ‘backhauling’ (acquiring additional cargo to transport on the return route).
   
5. Improving reporting: Wide-scale changes to the transportation and logistics  industry can only be driven by governments and regulatory bodies. Keeping these institutions informed with regular, transparent reports will enable them to produce legislation and incentives that more accurately align with the real world.

Thriving in a more sustainable sector

Learning to adapt and reduce emissions isn’t just a case of surviving — it’s about thriving. Diversifying transport methods can reduce bottleknecks, while optimising delivery routes will only improve operational efficiency. Ultimately, these actions could drastically reduce Europe’s transport emissions, while minimising the prospect of future supply chain disruptions caused by climate change.

When such disruptions do happen, having the right risk management solution in place is crucial in protecting your bottom line. An innovative approach like Loadsure’s Holistic Freight Protection will not only ensure you have access to the right data-priced insurance products for your business, but can also help you manage your risk upfront, and expedite recovery from any unavoidable losses. 

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