Why is Containerisation a Game Changer for Final Mile Logistics

In today’s fast-paced supply chain environment, efficiency, flexibility, and security are critical to business success. One of the most effective logistics solutions that has stood the test of time is containerisation—a system that enables the seamless movement of goods across multiple modes of transport, including road, rail, sea and river.

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For businesses organising and handling goods for urban last-mile logistics picked and organised locally or at regional or national distribution centres, the use of standardised containers (obviously smaller than shipping containers) that can be carried by truck, train, boat, van and micromobility is a clear strategic advantage. Containerisation offers a streamlined and cost-effective way to move products with minimal handling. This is particularly beneficial in the age of micromobility, where small, agile delivery vehicles—such as 2,3 and 4 wheel cargobikes can complete the final leg of the journey without the need for riders to sort or pack goods. They simply need to be able to carry uniform sizes of container, be that a 2m3 swop-body container for an ONO cargobike loaded with euro totes or Amazon 'drag bags' for example.

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What is Containerisation?

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Containerisation refers to the practice of packing goods into standardised containers that can be efficiently transported across multiple transport modes. This method has been a cornerstone of global logistics for decades, but its benefits extend far beyond international shipping.

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Today, some businesses are using smaller, urban-friendly containers to move goods efficiently within national and regional distribution networks. This approach ensures that products arrive pre-packed, secured, and ready for last-mile delivery.

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Containerisation within the Urban Final Mile​​

The biggest cost to a final mile operation is the human resource. Is the best use of a van driver or cargobike rider to be loading the vehicle prior to departure? Depending on the business sector and use case, loading can take from 10-30 minutes for every route completed. Depending on route length, number or delivery locations, this could equate to up to 1/6th of every working shift in certain operational scenarios. Loosing 10 minutes in every working hour equates to 1hr 20 minutes to lost productivity over an 8-hour shift. This is 'lost' delivery capacity that could be productively used. To buy back this lost capacity requires recruiting and paying additional workforce and associated vehicles.

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Imagine an alternative scenario. The driver/rider arrives at the distribution centre / urban hub / dark store. They disengage and remove the existing empty container from the vehicle, fetch the new full one and connect to the vehicle. Scan the QR code on the side of the container module which provides to new route and drop sequence on the PDA, then they depart. A 2-minute turnaround and they are gone. A historic 10-minute process reduced by 80% through a change in process and delivery infrastructure.

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This is not future gazing, this is art of the possible today, a solution that we have designed, tested and deployed. Just 2 minutes to load 190kg of groceries pre-picked into customer orders, and placed into a 'container module' for transit in delivery sequence. The container module in the above real-world example has a capacity of 2m3, 200kg payload, 3 shelves, with side and rear access doors.

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Containers come in differing sizes. A 2m3 capacity container module can be transported in rigid and articulated trucks. Our research shows that 22-44 2m3 (pre-packed) containers can be moved by a single or double decked box van trailer, or loaded onto railway carriages from the platform or wheeled on gangplanks to and from commuter boats such as the Thames Clipper in London. Smaller containers can be used for direct order picking on a supermarket aisle and once full, wheeled and stored in the dispatch area for delivery. All whilst maintaining cold chain compliance through use of a range of thermal and ambient totes.

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Our research, testing and deployment demonstrates the tactical and operation advantages of an eco-system of container modules of varying sizes that can be used in a number of operating scenarios from small shop & big shop grocery, to office stationery to FMCG etc. for urban deliveries. Observation shows that all to often goods are placed in non-robust bags and placed XXX exposing the risk of damage, degradation or contamination.

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For medical and pharmaceutical applications, the containers delivered & collected from sites may only be able to be opened by designated key holders (RFID or physical key), thus maintaining security of goods in transit.

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When examining upstream supply chains, standardisation and modularity is commonplace such as Royal Mail's 'York' roll container, Amazon's Nestable XPT CART that can hold 9 filled Sort Kubes. Yet it all changes for the final mile. Re-sortation and repacking occurs in conjunction with loading. XXXXXX sees a logistics world with a near seamless transition between supply chain phases.

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The Key Advantages of Containerisation

 

1. Efficiency in Goods Movement

Containerisation allows businesses to move goods in bulk, significantly reducing the time spent on individual handling and repacking at various points in the supply chain. Whether goods are:

• Picked locally and placed into a container for distribution within a city or region, or

• Picked further afield and sent in bulk from a National or Regional Distribution Centre (NDC or RDC)

 

The result is a streamlined and predictable movement of goods. Once packed, the container itself becomes the transportable unit—minimising handling, improving efficiency, and reducing potential errors.

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2. Multimodal Transport Flexibility

Unlike traditional delivery methods, which rely heavily on a single mode of transport, containerisation offers unparalleled multimodal flexibility. Goods packed into containers can move seamlessly via:

• Road – Trucks can efficiently transport containers from distribution hubs to city centres.

• Rail – A cost-effective and sustainable option for long-distance movement, reducing road congestion.

• River or Canal Transport – An underutilised but highly efficient way to transport goods in urban areas.

 

By using a combination of transport modes, businesses can ensure that goods arrive at the right place, at the right time, with minimal disruption.

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3. Cost Savings and Operational Efficiency

Containerisation reduces logistics costs in multiple ways:

• Lower Labour Costs – Because goods are pre-packed, workers spend less time sorting, picking, and handling orders at various stages of the supply chain.

• Reduced Transport Costs – Bulk shipments via rail or river can be more cost-effective than multiple road deliveries.

• Minimised Damage and Loss – Securely packed containers protect goods from damage, theft, or loss, ensuring reliable delivery.

 

With fewer touchpoints in the supply chain, businesses can move more goods with less manual intervention, leading to significant cost savings over time.

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4. Seamless Integration with Micromobility Logistics

One of the key advantages of containerised orders is that micromobility riders do not need to handle or pack the goods. Instead, pre-packed containers can be transferred directly from a larger vehicle (such as a van or truck) onto:

• Cargo bikes – Designed to carry compact containers efficiently.

• E-scooter delivery platforms – Ideal for lightweight, high-value orders.

• Automated last-mile delivery solutions – Such as lockers or urban hubs.

 

This removes the need for riders to manually sort goods, saving businesses time and reducing the risk of errors in last-mile delivery. Additionally, it ensures a clear chain of custody, improving accountability and customer satisfaction.

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5. Sustainability Benefits

 

Containerisation plays a significant role in building a more sustainable supply chain. By enabling businesses to use a mix of transport methods, it reduces reliance on carbon-intensive road transport. Key environmental advantages include:

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• Lower Emissions – Rail and river transport produce significantly fewer emissions than road transport.

• Reduced Traffic Congestion – Fewer large delivery trucks on city roads mean less congestion and pollution.

• Optimised Last-Mile Delivery – Micromobility solutions, which operate with zero emissions, can seamlessly handle containerised goods for final delivery.

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For businesses aiming to reduce their carbon footprint while maintaining efficiency, containerisation is an essential strategy.