SME carriers need practical tools to stay part of the transport transition

Europe’s road freight sector is under pressure to reduce emissions quickly. The EU has committed to reducing net greenhouse gas emissions by at least 55% by 2030 compared with 1990 levels, with climate neutrality targeted by 2050. Transport remains one of the harder sectors to decarbonise, and road transport accounts for about one quarter of the EU’s total greenhouse gas emissions.

For large logistics groups, the shift is already underway through electrification, alternative fuels, improved routing and investment in new infrastructure. For small and medium-sized carriers, the situation is more difficult. These companies form a large part of Europe’s road freight system, but often have fewer resources to analyse new technologies, invest in vehicles, secure charging access or adapt operations to changing regulations.

“Small transport companies are the backbone of the European transport system but often lack the financial means to take the first steps toward a more sustainable operation. One of the reasons we developed Pathfinder was to give smaller carriers access to the kind of data and tools that make the transition manageable – even without massive internal resources,” says Fadi Said, Head of Operations at LOTS Group.

Why electrification is difficult for smaller carriers

Fleet electrification can reduce tailpipe emissions and, in some cases, lower operating costs. But the shift also brings practical challenges. Battery-electric trucks require access to charging, route planning must account for energy use and charging time, and the business case depends on utilisation, electricity prices, vehicle costs and customer requirements.

For smaller carriers, the barriers are often structural. High upfront investment, uncertain resale values, limited charging infrastructure, changing policy requirements and limited internal capacity can make it difficult to decide when and where to start. A Smart Freight Centre report on European SME road carriers notes that smaller operators face specific barriers in the decarbonisation transition, including financial constraints and limited internal capacity.

Pathfinder’s role in reducing planning risk

Pathfinder is designed to help carriers and transport buyers evaluate routes before making operational changes. For electric and alternative-fuel transport, this includes analysing verified infrastructure waypoints, route distance, energy consumption, rest times, route cost and CO₂ data.

The value is not in replacing operational experience, but in making it easier to test options before committing resources. A carrier can compare route alternatives, see where charging or refuelling may affect delivery planning, and identify where the operational risk is highest.

For smaller carriers, this matters because there is often less room for trial and error. Better route analysis can help them start with the flows that are most suitable, rather than treating electrification or alternative fuels as an all-or-nothing decision.

Collaboration will determine how widely the transition reaches

Technology alone will not solve the transition for SME carriers. Financing, infrastructure, customer demand, regulation and partnerships all matter. Smaller companies may need access to leasing models, shared charging or refuelling infrastructure, clearer incentives and customers willing to support lower-emission transport solutions. Cooperation between carriers, shippers and technology providers can also make it easier to identify suitable routes, coordinate capacity and plan infrastructure use, helping smaller carriers participate without carrying the full investment burden alone.

The risk of leaving SME carriers behind

If smaller carriers cannot take part in the transition, the impact will go beyond emissions. Europe’s transport system depends on a diverse carrier base. Smaller operators often serve local markets, specialised flows and flexible transport needs that larger networks may not cover in the same way.

If the transition becomes accessible only to the largest companies, the market could become less competitive and less resilient. It could also slow overall decarbonisation, because a large part of transport activity would remain outside the practical reach of lower-emission operations.

A practical way forward

SME carriers need better access to financing, clearer policy incentives, more charging and refuelling infrastructure, and planning tools that help them understand operational consequences before investing. Pathfinder is one example of how this support can work, helping carriers and customers make decisions based on route-level evidence rather than assumptions.

The challenge is significant, but it is not only a question of technology. It is about making the transition usable for the companies that keep Europe’s freight system moving every day. With the right planning, partnerships and support, SME carriers can remain part of it rather than being left behind.