Traffic Congestion?-?The Elephant in Last-mile Logistics

"The number of vehicles needed for online product delivery will increase by 36% by 2030 in the top 100 cities globally. Consequently, emissions will rise, congestion will increase by over 21%, and 11 minutes will be added to each commute".?

The Future of the Last-Mile Ecosystem, World Economic Forum (1)

Cities are dense concentrations of people reliant on infrastructure. The recent growth in online purchases has led to parcel-delivery vehicles blocking lanes and double parking. Meanwhile, e-grocers and food delivery services are increasing their presence with home deliveries via vans, bikes, and scooters.

The rise in online shopping directly contributes to traffic congestion, with the demand for last-mile delivery expected to grow by 78% in urban areas globally by 2030 (1). This article analyzes a role model city in urban planning, such as Barcelona, and explores how its logistics network operates.

Barcelona City-Scale Logistics

Barcelona is structured similarly to most coastal cities. The main city center serves as the core, with distribution radiating outward, shaped and constrained by the coast and surrounding geography. The city center is surrounded by international transportation hubs or gateways along the coast, suburban residential areas, and industrial zones concentrated near these transportation hubs.

The city logistics flow starts with metropolitan logistics, where national and international goods arrive in bulk via ocean freight, air freight, rail, or trucking at international transportation hubs. These goods are sorted at distribution centers, where large shipments are divided into smaller lots. These smaller lots are then transported to fulfillment centers operated by e-commerce giants like Amazon or third-party logistics providers. Here is where last-mile logistics begins.

The primary flow of goods is radial, moving from international transportation hubs on the outskirts toward customers in the city center. Goods travel along roads that navigate the regional geography, converging in densely populated urban areas. This creates a “traffic funnel” effect, which intensifies as the demand for online shopping continues to grow.

The following illustration represents the industrial areas and main distribution centers encircling the urban core, emphasizing how parcel flows concentrate in the city’s most densely populated regions.

Barcelona Last-Mile Logistics

Last-mile logistics refers to the final stage of the delivery process, from a distribution or fulfillment center to the end consumer. It is the most expensive part of the supply chain, accounting for 53% of overall shipping expenses (2). This stage often causes increased traffic and pollution in cities worldwide as metropolitan logistics converge on urban areas.

In cities like Barcelona, the last-mile delivery industry faces additional challenges due to urban masterplans like the Superblock, which prioritizes pedestrians over cars. The Superblock concept restricts traffic on certain roads while maintaining open main arteries. These zones are implemented in densely populated residential areas, where e-commerce demand is highest, accounting for 86% of all deliveries (3).

While the Superblocks reduce traffic within designated zones, they tend to increase congestion on the main roads that remain open to vehicles. This creates more pedestrian-friendly areas but exacerbates congestion in key transit arteries.

Given these challenges, the critical question is: How will the last-mile delivery industry adapt? Potential solutions include localized regulations tailored to e-commerce demand. However, multi-dimensional strategies are essential to address the broader challenges of urban logistics.

Superblock Planning

In 1859, the Plan Cerdà introduced orthogonal planning to Barcelona, giving rise to the Eixample district. The plan aimed to reorganize the European city into a more efficient and modern urban model. Building on this legacy, and in line with 21st-century goals for sustainability and habitability, Barcelona is now restructuring the Eixample by grouping existing blocks into Superblocks.

Under this concept, the primary roads forming the Superblock boundaries serve as the main transport corridors, while the interior streets are largely transformed into pedestrian-friendly spaces. This reorganization prioritizes walkability, reduces traffic within the Superblocks, and supports more sustainable urban living.

Conclusion

While the Eixample and Superblock masterplans are global benchmarks in urban planning, the rapidly growing last-mile logistics sector demands tailored solutions.

Advancements like battery-powered and hydrogen vehicles reduce CO2 emissions by 16% and 24% respectively. Parking enforcement mechanisms could further alleviate congestion by up to 29% by addressing double parking. However, the core challenge of traffic congestion persists, leaving space for innovators to disrupt and reshape this critical industry.

Bibliography

1. “The Future of the Last-Mile Ecosystem”, World Economic Forum?, 2020: https://www3.weforum.org/docs/WEF_Future_of_the_last_mile_ecosystem.pdf

2. “What is last mile delivery? The definitive guide”, Fareye, 2022: https://fareye.com/what-is-last-mile-delivery#:~:text=The%20last%20mile%20is%20typically,a%20consumer%20places%20an%20order.

3. “E-commerce and urban freight distribution in Spain post-COVID-19”, Deloitte, 2020: https://www.deloitte.com/content/dam/Deloitte/es/Documents/operaciones/deloitte-es-operations-e-commerce-and-urban-freight-distribution-in-spain-post-covid-19.pdf