Cargo bikes for urban freight

Using cargo bikes to transport goods can reduce the environmental impact of freight transport in urban areas. Cargo bikes come in many shapes and sizes, including two, three, four-wheeled and trailer-based vehicles. These vehicles can transport various goods, from construction materials to food to retail-store provisioning (Cairns and Sloman, 2019). Cargo bikes can carry up to 500 kg, depending on the size of the cargo space and whether they are electric or not (Nürnberg, 2019). Studies have estimated that in European cities, 51% of motorised trips related to purchasing and delivering goods, including passenger trips to procure goods, could be shifted to a mechanical or electric bike (Cairns and Sloman, 2019).

Cargo bikes are well-suited to replace van trips because of the smaller cargo loads that vans used for intra-city deliveries typically carry. However, shifting loads from trucks and larger freight vehicles is more complicated. While using cargo bikes provide benefits in various contexts, they perform especially well in congested urban areas where parking is difficult. In such places, particularly those with narrow streets, cargo bikes can be faster than vans (Hagen, Lobo and Mendonça, 2013). Cargo bikes are also easier to park than vans, potentially reducing the duration of freight trips overall.

Authorities can promote the uptake of cargo bikes for urban freight activities by providing monetary purchase incentives for businesses and adapting existing traffic and vehicle regulations to address and, where applicable, incentivise cargo bike use. For example, city authorities can exempt cargo bikes from traffic restrictions in low-emission zones or pedestrian areas (Ploos Van Amstel et al., 2018). French authorities recently launched a program in four cities to subsidise each parcel delivered by cargo bike between EUR 0.6 - 2.0 (Ministère de la Transition écologique, 2021). Additional incentives could assist logistics service providers and small businesses in evaluating the suitability of cargo bikes for their delivery needs.

Impact on CO2 emissions

Cargo bikes reduce CO2 emissions by replacing higher-polluting vehicle trips. The amount of CO2 saved will mainly depend on the CO2 intensity of the vehicle trips cargo bikes are replacing, which, in turn, will significantly depend on the fuel/energy source used. One study in Paris estimated that based on the typical load factor for each vehicle, cargo bike trips reduce the emissions generated by transporting one ton of goods over one kilometre by 99.6% and 99.8% compared to vans and trucks, respectively (Koning and Conway, 2016).

Costs

Logistics service providers can save costs by using cargo bikes, depending on the cargo characteristics and a city’s local transport context. Cargo bikes’ capital and operating costs – including fuel, maintenance, storage and insurance – tend to be lower than those of other delivery vehicles. In Bogota, replacing two mini-trucks with three cargo bikes lowered delivery costs by 16% (Prato Sánchez, 2021).

However, depending on the vehicles, a cargo bike may have a lower payload than a van, thus requiring an increased number of trips to transport the same number of goods. Cargo bikes also require public infrastructure, such as dedicated bike lanes and loading spaces. The lack of these facilities contributes to time and efficiency losses. These factors could increase overall freight travel times and salary costs. A study in Antwerp, Belgium suggested that shifting from vans to cargo bikes could increase operational costs by around 10% (Arnold et al., 2018).

Improving infrastructure for bicycle transport and un(loading) activities creates additional costs for city authorities.

Co-benefits

Using cargo bikes for goods movement yields numerous benefits from the displaced freight vehicle trips. Since cargo bikes are smaller than vans and trucks, shifting freight activity from these vehicles to cargo bikes reduces congestion. Reduced freight vehicle traffic (mainly vans, trucks, and two- and three-wheelers) results in lower local air pollution and noise. One study in Paris estimated that the eleven-fold increase in the volume of goods delivered by bike between 2001 and 2014 led to reductions of 45% and 50% in local air pollution and congestion from freight traffic, respectively (Koning and Conway, 2016). A simulation study in Antwerp estimated that implementing a cargo bike delivery system from distribution points to consumers would reduce the value of external costs from noise, emissions, and congestion costs by more than 40% (Arnold et al., 2018).

Cargo bikes may improve road safety by reducing the number of trips and distances travelled by larger and more dangerous freight vehicles such as vans and trucks. These safety improvements disproportionately benefit vulnerable road users such as pedestrians, people on bikes, and occupants of smaller motorised vehicles.

Other considerations

Cargo bikes require dedicated infrastructure such as bike lanes and (un)loading spaces. Loading spaces can be tailored to the smaller vehicle footprint of cargo bikes compared to vans and trucks. The lack of these facilities contributes to efficiency losses in cargo bike deliveries and can lead to conflicts between cargo bikes and other users on the pavement or at a curb. As part of a cargo bike delivery pilot, New York City authorities created ‘cargo bike corrals’ for logistics-service operators to park bikes while loading and unloading (New York City DOT, 2021). Loading areas should be clearly marked for freight purposes to avoid drivers of passenger vehicles parking in them. 

When designing cargo bike loading facilities, authorities should designate enough space for logistics operators to deconsolidate freight loads from vans to cargo bikes to avoid increased congestion resulting from vehicles parking in the public right of way.

The role of cargo bikes in traffic may be confusing for delivery workers and for other road users. City authorities can adopt regulations specifying where cargo bikes are permitted on roadways and where they are allowed to park during un(loading) activities (Ploos Van Amstel et al., 2018).

Cite this measure as

ITF (2022) Transport Climate Action Directory – Cargo bikes for urban freight activities, [https://www.itf-oecd.org/policy/cargo-bikes-urban-freight](https://www.itf-oecd.org/policy/cargo-bikes-urban-freight-activities).

Sources

Arnold, F. et al. (2018) ‘Simulation of B2C e-commerce distribution in Antwerp using cargo bikes and delivery points’, European Transport Research Review. Springer Verlag, 10(1), pp. 1–13. doi: 10.1007/S12544-017-0272-6/FIGURES/6.

Cairns, S. and Sloman, L. (2019) Potential for e-cargo bikes to reduce congestion and pollution from vans in cities.

Hagen, J., Lobo, Z. and Mendonça, C. (2013) ‘The Benefits of Cargo Bikes in Rio de Janeiro: A Case Study’, in 13th WCTR, July 15-18, 2013. Rio de Janeiro. doi: 10.7916/D8DZ089R.

Koning, M. and Conway, A. (2016) ‘The good impacts of biking for goods: Lessons from Paris city’, Case Studies on Transport Policy. Elsevier, 4(4), pp. 259–268. doi: 10.1016/J.CSTP.2016.08.007.

Ministère de la Transition écologique (2021) Plan national cyclologistique .

New York City DOT (2021) Commercial Cargo Bicycle Pilot A New Mode for Last Mile Deliveries in NYC. New York.

Nürnberg, M. (2019) ‘Analysis of using cargo bikes in urban logistics on the example of Stargard’, Transportation Research Procedia. Elsevier, 39, pp. 360–369. doi: 10.1016/J.TRPRO.2019.06.038.

Ploos Van Amstel, W. et al. (2018) URBAN TECHNOLOGY RESEARCH PROGRAMME LEFV-LOGIC: RESEARCH ON LIGHT ELECTRIC FREIGHT VEHICLES.

Prato Sánchez, D. F. (2021) ‘Bicicarga: Distribución eficiente y ecológica’, in Programa Regional de Capacitatión SOLUTIONSplus 2021.