Knowledge Hub
Collaborative Shipping: Paving the Way to Net Zero Logistics
The logistics industry is at a pivotal moment. As one of the largest contributors to global emissions, transportation must evolve swiftly to meet the increasing demands for sustainability and carbon reduction. The future of logistics is rooted in reducing carbon footprints, and two critical strategies have emerged: electrification and collaborative shipping.
The logistics industry is at a pivotal moment. As one of the largest contributors to global emissions, transportation must evolve swiftly to meet the increasing demands for sustainability and carbon reduction. The future of logistics is rooted in reducing carbon footprints, and two critical strategies have emerged: electrification and collaborative shipping.
The Need for a Net Zero Logistics System
Transportation accounts for 25% of the EU’s total emissions, with heavy-duty trucks and buses making up a significant portion. As the demand for road freight is expected to rise by 47% by 2050, a fundamental shift is needed to decouple these emissions from increasing transport demand. Electrification, though essential, presents complex challenges including high upfront costs, technological uncertainty, and infrastructure gaps.
The whitepaper emphasizes that achieving net zero emissions in logistics requires a comprehensive, system-wide approach. This involves not just the transition to battery electric vehicles (BEVs) but also the integration of digital tools and strategic collaboration between all stakeholders—manufacturers, logistics providers, energy suppliers, and end customers.
The Role of Electrification
Electrification is a cornerstone in reducing logistics-related emissions. Battery electric trucks are advancing rapidly, with several original equipment manufacturers (OEMs) producing vehicles that meet long-haul requirements. However, widespread adoption has been slow. In 2024, only 1.1% of heavy-duty vehicles sold in Europe were electric, primarily due to high initial costs and limited infrastructure.
For smaller transport operators—who represent 70% of the market—the capital required to transition to electric vehicles is a significant barrier. These operators often have older fleets, and the cost of an electric truck, which is 2–3 times higher than a diesel truck, is a substantial investment. Beyond vehicle costs, infrastructure such as en-route charging stations is underdeveloped, creating further hurdles for long-distance transport.
“The path to net zero logistics is clear but challenging. Electrification and collaboration must go hand in hand, supported by digital tools that enhance efficiency.”
Collaborative Shipping: A Solution Beyond Silos
The whitepaper highlights that decarbonization cannot be achieved in isolation. The logistics ecosystem is fragmented, with various actors—manufacturers, suppliers, logistics providers, and energy companies—operating in silos. This lack of coordination leads to inefficiencies, duplicated efforts, and slowed progress towards sustainability goals.
Collaborative shipping emerges as a key solution. By fostering greater transparency and collaboration, shippers and logistics providers can optimize their operations, reduce inefficiencies, and share investments in infrastructure. A central orchestrator role is essential to manage the complex logistics network, ensuring that all stakeholders align towards common sustainability targets. This orchestrator can identify bottlenecks, streamline processes, and maintain momentum in the transition to electric logistics.
Digital Transformation: A Catalyst for Change
Digital innovation is crucial for supporting electrification in logistics. Advanced AI and machine learning tools can optimize routes, manage vehicle range, and predict energy consumption, making electric logistics more cost-effective. For instance, generative AI can automate planning processes and suggest optimal integration strategies for electric trucks within existing fleets. By reducing operational complexity and improving efficiency, these digital tools are vital for accelerating the shift towards sustainable transport.
A Roadmap to a Greener, Smarter Future
The path to net zero logistics is clear but challenging. Electrification and collaboration must go hand in hand, supported by digital tools that enhance efficiency. The logistics industry can transform itself from a major carbon emitter to a driving force for sustainability, but only through coordinated, system-wide efforts.
As the whitepaper outlines, achieving a greener, smarter, and more resilient logistics sector by 2030 will require bold leadership, innovative thinking, and a commitment to collaborative action. By addressing the barriers to electrification and embracing digital transformation, the logistics industry can pave the way to a sustainable future that benefits both the economy and the planet.
Insights
Cases
News
Packoplock and LOTS Group: Driving Logistics Efficiency Through Strategic Partnership and AI Innovation
Packoplock and LOTS Group have entered a results-oriented partnership to enhance European logistics operations. Central to this collaboration is the LOTS Group Pathfinder platform, which leverages advanced AI to analyze, simulate, and optimize logistics for maximum efficiency and smarter planning.
Racing Against 2030: Small Carriers, Big Sustainability Challenges
Europe’s transport sector must cut emissions fast to meet 2030 climate goals. While big players push ahead, small and medium carriers – the backbone of the industry – risk being left behind. This article highlights their challenges and the solutions needed to keep them part of the transition.
LOTS Pathfinder in Dagens Industri
In an interview with Dagens industri, Johan Palmqvist, Managing Director of LOTS Europe, and Jonathan Jönsson, Tech Lead, explain how LOTS Group leverages AI and data to reduce empty mileage, optimize vehicle utilization, and make electric freight commercially viable.
LOTS Group Acquires Elain – Strengthening capacity for data-driven CO₂ reduction
As pressure mounts on the logistics sector to cut emissions, many companies still struggle to turn climate data into actionable change. With the acquisition of Elain, LOTS Group is bridging that gap. By combining operational expertise with one of the market’s most advanced emissions platforms, the two companies aim to deliver deeper insights, stronger compliance, and measurable CO₂ reductions — without compromising on cost or quality.
White paper: It’s Not the Truck – It’s the System: How to Make Electric Freight Work
The road to decarbonized freight isn't blocked by technology — it's blocked by outdated thinking. Battery-electric vehicles (BEVs) are ready. Long-range electric trucks exist. Public charging infrastructure is growing along Europe’s major corridors. So why aren’t we seeing widescale adoption of electric road freight? The answer is simple: it’s not about the truck. It’s about the system around it.
SKF and LOTS Group Collaborate on Electrification – Launching One of Europe’s Longest BEV Routes
As the demand for greener transport solutions grows, SKF and LOTS Group, together with Scania and Ahréns Åkeri, are taking action by launching one of Europe’s longest battery-electric vehicle (BEV) routes. This initiative significantly reduces emissions while optimizing transport efficiency. By leveraging digital tools and collaboration across the supply chain, the project demonstrates that long-haul electrification is both feasible and economically viable, setting a new standard for sustainable logistics.
Navigating Electricity Cost Structures: Optimizing BEV Charging Economics
Electrifying freight means mastering grid costs. Peak demand, not fuel price, defines BEV economics.
Women Driving Change in Logistics
LOTS Group’s female driver training program fosters inclusion and changes the face of road transport.
Battery Energy Storage Systems: A Smart Step Toward Scalable Fast Charging
As the world races towards net-zero emissions targets, the electrification of long-haul trucking offers immense potential to reduce emissions. However, the higher upfront costs of battery electric vehicles (BEVs) pose a challenge to widespread adoption in the freight industry. This is where Battery Energy Storage Systems (BESS) emerge as a game-changing solution, enabling lower charging prices and helping to offset the increased capital expenditure associated with BEVs, thus paving the way for a more sustainable and economically viable future in heavy-duty transportation.
ETS2: Calculating Your Emissions – A Guide for Logistics Professionals
Article 2 in our series about ETS2: Accurately calculating emissions. With ETS2 introducing a cost for carbon and CSRD driving demand for primary emissions data, logistics professionals must adopt standardized methodologies like those outlined in the GHG Protocol, ISO 14083, and the GLEC framework. Choosing the right calculation approach and collaborating with supply chain partners will be critical for meeting regulatory requirements, maintaining competitiveness, and driving meaningful CO2 reductions.
ETS2: The End of Business as Usual for Logistics and Transport
Article 1 in our series on ETS2: The EU’s Emissions Trading System 2 (ETS2), launching in 2027, will bring carbon pricing to road transport, buildings, and smaller industries—driving long-overdue emissions reductions in logistics. This article series breaks down the key impacts and offers practical insights to help businesses adapt.
Case: Boosting Efficiency Through Lean Principles: The Power of Small Changes
Lean production is about more than cutting costs. It’s about creating a smarter, more resilient system that adds value at every step. By embracing lean efficiency, we’re not only improving processes but also laying the foundation for a more sustainable, greener supply chain.
Collaborative Shipping – Decarbonization won’t happen in silos
One of the most significant challenges facing the logistics sector is its fragmented nature. With multiple stakeholders, from manufacturers to logistics providers, each working in their own domain, inefficiencies are bound to arise. This siloed approach hinders the progress needed to transition toward sustainable, electric transport. The lack of a cohesive strategy results in duplicated efforts, wasted resources, and slower overall progress toward sustainability goals.
The Changing Landscape of Logistics
The logistics industry stands at a critical crossroads, grappling with unprecedented challenges as it seeks to reduce emissions while meeting the demands of a rapidly evolving global economy. Currently, transport accounts for 25% of total EU emissions, with heavy-duty vehicles representing a significant portion of this total.
Electrification – The Next Frontier for Decarbonizing Transport
Electrification offers a promising path to reducing transport emissions, but challenges like high costs and limited charging infrastructure slow its adoption. This article examines the potential of electric trucks and the key obstacles to creating a sustainable logistics future.
Enhancing Efficiency and Sustainability in Logistics
The logistics industry is constantly evolving, and companies are always looking for ways to improve efficiency, reduce costs, and enhance sustainability. One such initiative is the transition from non-stackable to stackable pallets. This document explores the potential benefits of this transition for a client who has been using non-stackable pallets for bulk transportation of components. The goal is to identify how switching to stackable pallets can optimize logistics operations, reduce costs, and support sustainability goals while adhering to lean efficiency principles.