Freight Consolidation in Small Cities: A Framework for Policy Design and Urban Livability

A recent academic study offers practical guidance for local authorities in smaller cities, helping them better understand and manage freight consolidation within their urban areas. Rather than prescribing specific regulatory measures—which are often subject to political change—the study introduces a structured framework that supports evidence-based policy development to improve urban livability.

The approach is grounded in the perspective of municipal authorities and evaluates the effects of various market structures, each characterized by different levels of consolidation. The study identifies key factors influencing urban livability using indicators such as total vehicle kilometers driven, stop frequency, and stop duration. A notable contribution is the application of micro-level vehicle routing models to assess the macro-level impacts of freight consolidation, enabling authorities to anticipate the outcomes of different policy choices.

The framework is applied to a case study in Bergen, Norway—a compact medieval city with a complex street network and limited parking. Based on real geographic data and actual parcel demand, the findings show that small carriers significantly contribute to urban congestion by occupying street space for longer durations at multiple delivery points. In contrast, a market arrangement that limits end-customer deliveries by smaller carriers could offer greater efficiency gains than a system relying solely on large-scale consolidation or a limited number of larger operators.

The analysis also highlights that, in cities with narrow, one-way streets, stop duration is a particularly relevant indicator. While consolidation can help reduce this metric, a meaningful portion of delivery time still occurs at the curb. To address this, the study proposes further exploration of operational models where delivery personnel—rather than drivers—complete the final leg of the delivery on foot or by bicycle. Such strategies could reduce the number and duration of vehicle stops, thereby improving traffic flow and street accessibility.

The city of Bergen is already exploring last-mile delivery by bicycle, offering a potential testing ground for alternative logistics models. Research into the feasibility, operational requirements, and policy implications of such approaches could inform similar efforts in other small cities.

Lastly, the study notes that its findings are based on PostNord’s delivery patterns, used as a proxy for broader market behavior. While collecting data from additional carriers remains a logistical challenge, doing so could enhance the generalizability of the conclusions. Future research may also examine how consolidation strategies affect livability across different types of goods and delivery markets beyond parcel logistics.

Source: Orhan, C. C., Goez, J. C., Guajardo, M., Osicka, O., & Wallace, S. W. (2024). Assessing macro effects of freight consolidation on the livability of small cities using vehicle routing as micro models: The case of Bergen, Norway. Transportation Research Part E: Logistics and Transportation Review, 185, 103521. https://doi.org/10.1016/j.tre.2024.103521

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