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Killing the Empty Mile: How Dynamic Routing Is Decarbonizing European Supply Chains
For European supply chain leaders in retail, 3PL, and FMCG managing multi-country fleets: this guide breaks down exactly how AI-driven dynamic routing through a modern Transport Management System (TMS) eliminates empty miles, slashes CO2 emissions, and strengthens ESG compliance—without replacing a single truck.
Static transport plans no longer work. For decades, European logistics teams have lost profits to a silent enemy: the empty mile. A truck delivers a load from Berlin to Warsaw. It lacks a coordinated return load. It drives back empty. Every kilometer of that return journey burns fuel, generates CO2, and earns zero revenue.
With the European Green Deal mandating a 90% reduction in transport-related greenhouse gas emissions by 2050, the pressure on logistics providers is acute. Globally, logistics operations account for approximately 14% of CO2 emissions. Road transport claims the lion’s share.
Fleet managers are investing in alternative fuels and electric vehicles. But hardware transitions demand massive capital and infrastructure overhauls. The fastest, most cost-effective lever for decarbonization requires zero changes to the physical truck. It’s software.
Specifically, modern TMS platforms like Locus—equipped with dynamic, AI-driven routing—are systematically eradicating empty runs and instantly trimming both fuel costs and carbon footprints for 360+ enterprise clients worldwide.
Key Takeaways
The empty mile problem is severe: Over 21.6% of road freight distances in the EU in 2024 were driven by completely empty trucks—unnecessarily burning fuel and generating CO2.- Software drives 30% of decarbonization: Implementing a TMS for dynamic routing accounts for roughly 30% of the total CO2 reductions a logistics operation can achieve.
- 40% fewer empty runs, 18% less CO2: Real-world implementations show advanced route optimization software reduces empty vehicle runs by 40%, directly translating to an 18% reduction in fleet CO2 emissions.
- Sustainability equals profitability: 82% of surveyed companies confirm they have captured economic benefits from decarbonization—and advanced routing is the fastest path to realizing those gains.
The empty mile problem is severe: Over 21.6% of road freight distances in the EU in 2024 were driven by completely empty trucks—unnecessarily burning fuel and generating CO2.
Software drives 30% of decarbonization: Implementing a TMS for dynamic routing accounts for roughly 30% of the total CO2 reductions a logistics operation can achieve.
40% fewer empty runs, 18% less CO2: Real-world implementations show advanced 
Sustainability equals profitability: 
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The Hidden Cost of Empty Trucks in Europe
The scale of wasted capacity on European roads is staggering.
According to Eurostat’s 2024 data, more than one-fifth (21.6%) of all distances traveled by road freight vehicles in the EU were performed by entirely empty vehicles. That represents millions of kilometers driven—burning diesel, paying road tolls, and wearing down tires—while generating zero revenue and emitting tons of unnecessary greenhouse gases.
Heavy-Duty Vehicles (HDVs) already account for roughly 6% of the EU’s total greenhouse gas emissions. Continuing to operate under rigid, inflexible dispatching models where a quarter of every journey produces nothing but exhaust is no longer viable. Not financially. Not environmentally.
The business case for action is now undeniable. According to CO2 AI’s 2025 Climate Survey, nearly half of respondents said their average return on investment for climate risk investments exceeded 10%. Meanwhile, 6% of surveyed companies reported decarbonization value exceeding 10% of annual revenue—a net value of $221 million per company. Empty miles represent one of the most actionable targets for capturing that value.
Furthermore, customers and retailers are demanding stricter delivery windows. This often forces logistical inflexibility, further exacerbating the empty running problem. For European supply chain leaders in retail, 3PL, and FMCG, the question is no longer whether to address empty miles—it’s how fast.
Enter the Modern TMS: Eradicating the Empty Run Through Dynamic Routing
Historically, route planning was a static exercise. A dispatcher assigned a fixed route based on historical data. If a delay occurred—or a new order popped up nearby—the system was too rigid to adapt in real time.
A modern TMS changes this paradigm entirely. Platforms like Locus integrate GPS, telematics, and real-time environmental data to create dynamic route planning. Instead of viewing deliveries as isolated point-A-to-point-B trips, the software treats the entire fleet as a fluid, interconnected network. It actively matches return loads, reroutes trucks mid-journey to pick up nearby cargo, and optimizes paths to minimize idle time and fuel consumption.
Understanding what is route optimization at this level is critical: it’s not just about finding the shortest path. It’s about orchestrating fleet-wide decisions in real time—factoring in traffic, weather, delivery windows, and carbon intensity simultaneously.
The Data: Real-Time Route Optimization Delivers Measurable CO2 Cuts
The empirical data on this software-driven approach is clear:
| Metric | Impact | Source |
| Empty run reduction | 40% | European Research Studies Journal, Vol. XXVIII, Issue 4, 2025 |
| Total fleet CO2 reduction | 18% | European Research Studies Journal, Vol. XXVIII, Issue 4, 2025 |
| Share of total logistics decarbonization | 30% | TMS + route optimization combined |
| EU empty truck distances (2024) | 21.6% of all road freight km | Eurostat 2024 |
In practical applications, integrating dynamic route planning with GPS and telematics reduces empty runs by a massive 40%. Because less fuel is burned on unproductive travel, this single technological intervention results in an 18% reduction in total CO2 emissions for the fleet.
Out of all the environmental logistics initiatives a company can deploy, TMS and route optimization account for a full 30% of the total decarbonization impact. No other single software intervention comes close.
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The Compound Benefits: Why Green Means Lean
The distinct advantage of deploying a TMS for decarbonization is that environmental goals align perfectly with operational profitability. Green logistics isn’t a cost center—it’s a margin accelerator.
The proof is now global. According to CO2 AI’s 2025 survey, 82% of surveyed companies say they have captured economic benefits from decarbonization. One-third have even implemented internal carbon pricing to formalize the link between emissions reduction and financial performance. Dynamic routing is one of the most direct mechanisms for translating that link into daily operational savings.
1. Fuel Cost Reduction
Fuel remains one of the highest variable costs in road transport. By cutting empty runs and shortening overall route distances, companies directly slash fuel spend. A truck earning revenue for every kilometer driven is a dramatically more profitable asset.
2. Maximized Asset Utilization
Instead of purchasing more trucks to handle increased volume, dynamic routing allows a company to move more freight with its existing fleet. By maximizing average load factors, enterprises extract significantly more value from the hardware they already own. Learn how modern logistics software improves fleet utilization without capital expenditure.
3. Automated Scheduling
A TMS automates the heavy lifting of dispatch scheduling. This reduces vehicle operating time and further lowers emissions. It also relieves pressure on dispatch teams and ensures driver hours are utilized efficiently. The result: fewer manual errors, faster turnarounds, and lower cost per delivery.
4. Future-Proofing for ESG and CSRD Compliance
As the EU enforces stricter environmental regulations—including the Corporate Sustainability Reporting Directive (CSRD)—manufacturers and logistics providers must deliver highly accurate, verifiable emissions data. A modern TMS provides the exact digital footprint necessary to prove reductions and build comprehensive ESG strategies.
5. Carbon-Aware Routing as a Competitive Differentiator
Beyond compliance, carbon-aware routing is becoming a procurement requirement. Major European retailers and manufacturers increasingly evaluate logistics partners on verified emissions performance. Companies that can demonstrate 18% fleet CO2 reductions through dynamic routing win contracts that competitors with static planning cannot.
Key Features of a Modern TMS for Dynamic Routing Decarbonization
Not all TMS platforms deliver the same decarbonization impact. Here are the features that separate a truly carbon-optimized routing engine from legacy systems:
- Real-time GPS and telematics integration: Enables mid-journey rerouting based on live traffic, weather, and order changes—eliminating idle time and unnecessary detours.
- AI-powered backhaul matching: Automatically identifies and assigns return loads from a network-wide order pool, directly attacking the empty mile problem.
- Multi-constraint optimization (250+ variables): Factors in delivery windows, driver hours, vehicle capacity, fuel types, road restrictions, and carbon intensity—simultaneously.
- Dynamic eco-routing algorithms: Balances emissions minimization against delivery speed, choosing routes that cut CO2 without sacrificing SLA performance.
- Automated dispatch and scheduling: Removes manual planning bottlenecks, reducing both human error and vehicle operating time.
- ESG reporting and audit trail: Generates verifiable, granular emissions data mapped to every route and shipment—ready for CSRD and customer audits.
- Fleet modernization integration: Supports mixed fleets (diesel, LNG, electric) with route assignments optimized per vehicle type and charging/fueling infrastructure.
Understanding why your business needs route optimization at this feature depth is what separates incremental gains from transformational decarbonization.
Why Choose Locus for Dynamic Routing Decarbonization
Locus is not a generic TMS. It is purpose-built for enterprise logistics teams that need to balance operational performance with measurable sustainability outcomes. Here’s what sets it apart:
- 360+ enterprise clients globally across retail, FMCG, 3PL, and e-commerce—each with verified decarbonization and cost-reduction results.
- 1.5 billion+ deliveries optimized using AI-driven dynamic routing that factors in 250+ real-world constraints per route decision.
- Proven empty mile elimination: Locus clients see measurable reductions in empty runs, fuel costs, and fleet CO2 emissions—often within weeks of deployment.
- CSRD-ready emissions reporting: Built-in carbon tracking delivers the granular, auditable data European enterprises need for regulatory compliance.
- Seamless integration: Connects with existing ERP, WMS, and telematics systems without infrastructure overhaul.
- Now backed by Ingka Group: Locus has been acquired by Ingka Group—built for the real world, backed for the long run—while remaining fully independent and platform-agnostic.
The route optimization benefits extend across every segment Locus serves, from last-mile retail delivery to long-haul 3PL operations.
The Path Forward: Combining Software With Fleet Modernization
While the long-term future of European road freight depends on zero-emission vehicles—LNG-powered units, electric trucks, hydrogen fuel cells—manufacturers cannot afford to wait for hardware supply chains to catch up.
The highest levels of CO2 reduction—15–30% annually—are achieved by integrating dynamic routing software with fleet modernization and warehouse infrastructure upgrades. A comprehensive approach is necessary. But attacking the empty mile with a modern TMS offers one of the fastest, most cost-effective returns on investment available today.
The data from CO2 AI’s 2025 survey reinforces this: nearly half of companies investing in climate solutions report ROI exceeding 10%. Dynamic routing decarbonization is where that ROI materializes first—before a single vehicle is replaced.
By shifting from static schedules to dynamic, data-driven routing, European supply chains can transform logistics from a primary source of carbon emissions into a strategic driver of sustainability and profitability.
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Frequently Asked Questions (FAQs)
What is dynamic routing in decarbonization?
Dynamic routing uses AI-driven TMS platforms with GPS and telematics for real-time route optimization. It matches return loads, reroutes trucks mid-journey, and minimizes empty runs across the fleet network. In European logistics, this approach cuts road freight CO2 by 18% through a 40% reduction in empty miles, based on 2024 EU data. It also factors in traffic, weather, and carbon intensity to find the most fuel-efficient path for every shipment.
How much CO2 can TMS dynamic routing actually reduce?
TMS dynamic routing accounts for 30% of total logistics decarbonization impact—more than any other single software intervention. Real-world implementations show 40% fewer empty runs and 18% lower fleet CO2 emissions. When combined with fleet modernization (LNG or electric vehicles) and renewable-powered warehouses, companies achieve 15–30% annual emission reductions. Academic research, including multi-agent Markov decision process eco-routing models, confirms these orders of magnitude.
What are empty miles and why are they a problem in EU supply chains?
An empty mile is any distance a freight vehicle travels without cargo. This typically occurs on return journeys when no backhaul load has been secured. According to Eurostat 2024 data, over 21.6% of all EU road freight distances were driven by empty trucks. That represents millions of wasted kilometers—burning diesel, generating CO2, and earning zero revenue. Dynamic TMS eradicates this by treating the fleet as an interconnected network, continuously matching trucks with available loads.
How does eco-routing balance emissions reduction and delivery speed?
Advanced eco-routing algorithms—including those based on multi-agent Markov decision process (MMDP) models—provide differentiated guidance. They calculate routes that minimize carbon intensity on urban expressways and highways without violating delivery SLAs. Unlike consumer navigation apps, which can inadvertently increase network-wide congestion and emissions, TMS-based eco-routing optimizes across the entire fleet simultaneously. The trade-off is engineered: maximum emission reduction while maintaining on-time performance.
Can dynamic routing help with ESG regulations like CSRD?
Yes. A modern TMS generates verifiable, granular emissions data for every route and shipment. This is precisely what the EU’s Corporate Sustainability Reporting Directive (CSRD) requires. Companies using dynamic routing can prove 18% CO2 reductions with auditable digital records—strengthening ESG reporting, satisfying investor scrutiny, and meeting customer procurement requirements. The system also integrates with fleet modernization data (LNG/electric vehicles) for comprehensive carbon accounting.
Is software enough to reach full climate neutrality in logistics?
No. While a TMS is the most effective immediate step, reaching full neutrality requires a combined approach. The highest CO2 reductions come from integrating dynamic routing software with zero-emission fleet transitions and renewable energy infrastructure. However, software acts first: it delivers measurable results within weeks, funds further investment through fuel savings, and provides the data foundation for every subsequent decarbonization initiative.
Do green logistics strategies cost more money to implement?
The evidence says the opposite. 82% of surveyed companies confirm they have captured economic benefits from decarbonization. Using a TMS to optimize routes drastically cuts fuel spend and improves asset utilization. These operational cost savings typically offset the initial software investment within months. Nearly half of companies investing in climate solutions report ROI exceeding 10%. Sustainable logistics doesn’t just reduce carbon—it increases profitability.
What industries benefit most from dynamic routing decarbonization?
Enterprise logistics operations in retail, 3PL, FMCG, and e-commerce see the most immediate impact. These sectors run high-frequency, multi-stop delivery networks where empty miles compound rapidly. Dynamic routing also delivers significant route optimization benefits for long-haul freight, hyperlocal delivery models, and cold-chain logistics—any operation where fuel costs and emissions scale with distance and frequency.
Data Credit: European Research Studies Journal Volume XXVIII, Issue 4, 2025: Innovative Logistics Solutions for Reducing CO? Emissions in Industrial Enterprises
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Killing the Empty Mile: How Dynamic Routing Is Decarbonizing European Supply Chains