Like airfreight, my exposure to road freight came a little later in my career. In some ways, I found it simpler than air or ocean transport—there’s no need for airway bills or bills of lading or customs clearance at every border, and the infrastructure is more flexible. But in other ways, it’s far more challenging.
Road freight is a highly dynamic and unpredictable sector where things can go wrong at the last minute, forcing constant replanning and adjustments. Driver shortages, equipment availability, congestion, delays, and unforeseen disruptions all mean that even the most carefully laid plans can unravel in real time.
It’s also an industry that remains highly fragmented, with a complete mix of maturity levels when it comes to technology adoption. The introduction of app-based freight platforms has started to level the playing field, but adoption is inconsistent, and the commercial models of who pays for these platforms remain a sticking point. The industry still hasn’t cracked this nut, leaving many inefficiencies in place—and a huge opportunity for road haulage companies to get ahead of their peers and gain a competitive advantage in efficiency and service.
The Road Freight Industry’s Biggest Bottleneck? “This Is How We’ve Always Done It.”
One of the biggest hurdles road freight faces is its resistance to change. Across manufacturers, shippers, and hauliers, route planning, carrier selection, and operational decisions are rarely optimized. Instead, most companies simply tender their freight contracts based on “last year’s rates” and the same suppliers they’ve always used—not because it’s the best way, but because the work involved in truly analyzing and optimizing the network is overwhelming.
This results in a supply chain that has evolved through inertia rather than strategic optimization. Routes, carriers, and methods are often based on historical habits rather than data-driven, real-time insights.
But it doesn’t have to be this way.
With the assistance of AI-driven solutions, supply chain planning and control towers could be revolutionized, shifting from reactive, last-minute adjustments to real-time, proactive optimization. Instead of merely adjusting based on yesterday’s problems, road freight could be optimized in real-time, minimizing waste, maximizing efficiency, and ensuring the best possible logistics decisions are made before problems arise.
For both shipper and carriers willing to embrace this shift, the rewards are huge—gaining a competitive advantage in efficiency, cost control, and service levels, putting them ahead of the curve in an industry where margins are tight and reliability is king.
A Brief History of Road Haulage
Road freight as we know it today has roots stretching back to the late 19th century. The first truck, designed by Gottlieb Daimler in 1896, marked a shift from horse-drawn wagons to mechanized transport, setting the stage for the modern haulage industry.
In the UK, early hauliers transitioned to motorized lorries, drastically improving delivery speeds and reliability. Over time, family-run businesses emerged as key players, many of which still dominate the industry today.
In the USA, the trucking boom started in the 1930s with the expansion of paved roads and later exploded with the construction of the Interstate Highway System in the 1950s and 1960s, making long-distance freight transport more viable than ever.
In mainland Europe, the development of road transport became essential for cross-border trade, with modern highways and logistics corridors facilitating goods movement between multiple countries.
From steam-powered wagons to beginning to where we are today, road freight has continuously evolved. But while trucks have become more advanced, operations and logistics still have inefficiencies that AI and digitalization can solve.
The Road Freight Landscape: UK, Europe, and the USA
While all three regions rely on road transport as a crucial part of their supply chains, each market operates differently, facing unique challenges and opportunities:
The UK: A Fragmented and Family-Owned Market
The UK’s road freight industry is dominated by small to medium-sized enterprises, with many being family-owned businesses.
The market is highly fragmented, with a high percentage of independent owner-operators managing relatively small fleets.
Brexit has introduced additional customs complexities, requiring hauliers to navigate new regulations and border procedures.
Mainland Europe: Large, Complex, and Cross-Border
Europe’s road transport industry employs over 3.3 million people and consists of over 570,000 companies.
Poland leads in fleet size, with around 1.2 million trucks, supporting its strong role in intra-European trade.
Unlike the UK and the US, cross-border complexity is a major challenge, requiring truckers to comply with multiple countries’ laws, toll systems, and labor regulations.
The USA: A Giant in Scale and Diversity
With over 4 million miles of public roads, the U.S. trucking industry is vast, moving more than 70% of domestic freight by weight.
The market features huge national carriers alongside independent owner-operators, creating a highly diverse competitive landscape.
Driver shortages continue to be a pressing issue, with the industry needing to attract younger workers as older drivers retire.
Comparing the Three Regions:
The U.S. has the largest and most diverse trucking network.
The UK is fragmented but highly competitive, often reliant on smaller fleets.
Europe has large fleet operators but faces cross-border regulatory complexities.
Across all regions, one problem remains universal: the inefficiency of empty miles.
The Challenge of Empty Miles
A staggering percentage of trucks on the road are traveling empty—wasting fuel, driving up costs, and increasing emissions.
In the EU, up to 30% of truck journeys involve no cargo.
In the UK, estimates suggest that one in three trucks is driving empty.
In the U.S., deadhead miles (empty return trips) waste billions of dollars annually in fuel and lost productivity.
This inefficiency has a significant environmental impact, contributing to unnecessary CO₂ emissions while increasing congestion on already stretched road networks.
The key to solving this? Better data, collaboration, and AI-driven optimization.
Harnessing Technology and Collaboration
How AI Can Transform Road Freight Efficiency
Smart Load Matching & Dynamic Route Optimization
AI isn’t just about optimizing the route for a single vehicle—it’s about transforming how an entire fleet operates. Imagine a system that instantly matches available cargo with empty trucks and continuously calculates the most efficient routes and stops for every vehicle in real-time. It takes into account traffic patterns, weather conditions, fuel efficiency, and delivery windows to ensure that each truck is taking the best route, with stops strategically planned for maximum efficiency. This dynamic approach eliminates congestion, minimizes downtime, and reduces fuel consumption across the entire fleet, creating a seamlessly coordinated operation.
Predictive Demand Planning
AI is more than a tool for the present—it’s a powerful predictor for the future. By forecasting demand spikes, AI enables companies to allocate trucking capacity ahead of time, ensuring they’re always ready to meet market needs. With better foresight, fleets can reduce empty miles, optimize utilization, and maintain consistent service levels, even during peak demand or unexpected surges.
Dynamic Pricing & Smart Contracting
AI-powered pricing models provide real-time adjustments based on fluctuating supply and demand, allowing hauliers to stay ahead of the competition. Paired with smart contracts, which automatically execute and adjust agreements, freight rates become more transparent and adaptable, streamlining transactions and reducing administrative overheads
Collaborative Logistics Platforms
AI also facilitates collaboration across the industry. Secure digital freight exchanges let competing companies share capacity, ensuring that trucks never travel empty, yet still retain their competitive edge. This collaborative model maximizes efficiency, reduces costs, and helps lower the environmental impact of empty runs.
The Competitive Edge of Early Adoption
For companies that embrace AI and digital transformation early, the benefits are clear: greater operational efficiency, reduced carbon footprints, and a more resilient, future-proof business model. Those leading the charge will shape the future of the freight industry—enhancing not just profitability but sustainability.
How Problems Solved is Driving Efficiency in Road Freight
At Problems Solved, we help logistics companies optimize efficiency, reduce costs, and embrace AI-driven innovation.
🚛🔍💡 Let’s drive the future together.