🚛 How Carriers Can Improve Asset Utilization to Boost Profitability and Sustainability

EC data shows that more than 1 in 5 trucks on European roads are driving empty.

This inefficiency creates a significant opportunity for carriers to increase profitability while reducing unnecessary emissions and road congestion.

Improving asset utilization — ensuring that trucks carry cargo as efficiently and consistently as possible — is a win-win for carriers, shippers, and society at large.

In this article, we define asset utilization in a freight context, explain why it’s a critical KPI for transport companies, and offer proven methods to improve it using both operational and commercial levers.

📘 What Is Asset Utilization in Trucking and Logistics?

Asset utilization in freight and logistics refers to the degree to which a transport company is using its physical assets — such as trucks, trailers, or containers — to generate revenue. It is commonly measured by the percentage of time or distance that an asset is:

• Actively transporting goods (as opposed to being idle or driving empty)

• Carrying profitable or revenue-generating loads

• Being used efficiently (e.g. full trailer capacity, minimized idle time)

In simple terms, high asset utilization means fewer empty kilometers and better cost-efficiency. Low asset utilization means trucks are underused, costing money instead of making it.

📊 Why Is Asset Utilization a Critical KPI for Carriers?

In a recent market study by Geobirds, based on input from over 100 European carriers, three strategic priorities were consistently highlighted:

1. Profitability

2. Sustainability

3. Personnel shortages

Asset utilization directly influences all three:

💰 Profitability

Operating a truck — even an empty one — costs fuel, wages, tolls, and maintenance.

A truck driving empty still burns cash. Improving asset utilization helps ensure every trip contributes to revenue, improving your revenue per kilometer.

Stat: The average cost of operating a heavy-duty truck in Europe is over €1.20 per km. Just 100 empty km per day can burn through €30,000 annually per truck.

🌍 Sustainability

Empty trucks don’t just waste fuel — they contribute to CO₂ emissions and congestion with no economic value in return.

Reducing empty runs is a low-hanging fruit in achieving sustainability targets.

👷 Personnel Shortages

Driver capacity is limited and increasingly hard to hire. If drivers spend time on underutilized routes, it’s a missed opportunity to use limited personnel effectively.

🚧 Common Challenges in Improving Asset Utilization

If improving asset utilization were easy, every fleet would already be running at near 100%. But in practice, carriers face multiple challenges:

1. Imbalanced Networks

Most carriers operate in networks where volume in and out of regions isn’t symmetrical. One leg might be full, while the return trip runs empty. This is particularly common in cross-border haulage.

2. Lack of Visibility

Many small and mid-sized carriers don’t have a real-time overview of asset availability, load capacity, or opportunities to combine freight. This leads to missed optimization opportunities.

3. Fragmented Load Matching

Finding the right load to match an empty route — especially on short notice — is difficult without the right digital tools. Load boards offer some help, but they often focus on spot freight, not long-term alignment.

4. Manual Planning Constraints

Dispatchers often rely on spreadsheets, phone calls, or outdated systems. Without automation, it’s hard to spot recurring inefficiencies across the network.

🔧 How to Improve Asset Utilization

Improving asset utilization comes down to two major levers:

1. Operational Optimization

Boost efficiency using your existing loads, tools, and capacity

2. Commercial Optimization

Add new loads or partners that structurally improve your network balance

The most successful carriers blend both approaches.

🚦 Operational Strategies to Improve Asset Utilization

🔁 Route Optimization

Reduce empty kilometers by improving routing between drop-off and pick-up points.

Modern Transport Management Systems (TMS) or dedicated routing tools help dispatchers minimize inefficiencies.

Consider factors like:

• Traffic congestion zones

• Pickup and delivery time windows

• Availability of backhaul options

Pro tip: Look for TMS platforms with geospatial planning capabilities that highlight inefficient legs in your network.

🕒 Reduce Dwell Time

Idle trucks mean lost time and revenue.

• Identify facilities with long wait times

• Work with shippers to improve turnaround

• Use trailer drop strategies when appropriate

Dwell time reduction improves both asset and driver utilization — especially in time-constrained operations.

📦 Increase Load Density

Underfilled trailers reduce revenue per km.

• Use advanced load planning to better fill trailer space

• Combine partial loads with compatible routes

• Explore freight consolidation on shared lanes

Even small gains in fill rate (e.g. from 80% to 90%) can lead to significant cost improvements at scale.

📈 Commercial Strategies to Improve Asset Utilization

🧾 Use Load Boards for Backhauls

Platforms like Timocom or Teleroute can help fill empty legs quickly.

Ideal for:

• Spot freight

• One-off network gaps

Limitations: Not always consistent, and often price-competitive.

🤝 Partner with Other Carriers

Establish agreements with trusted carriers to swap or subcontract freight on empty lanes.

• Improves structural utilization

• Expands network without owning more assets

• Reduces reliance on spot markets

With the right data, these partnerships can be proactive — not reactive.

🧭 Identify Shippers That Fit Your Network

The most strategic way to improve utilization is to identify shippers whose flows match your empty capacity.

This approach allows for:

• Long-term contracts

• Predictable lanes

• Higher asset ROI

Example: If you regularly run loaded from Rotterdam to Dijon but return empty, identify a shipper in Dijon that exports to the Netherlands.

📊 Sample KPI Benchmarks for Asset Utilization

Use these as internal benchmarks and adjust based on your trade lanes, mode (FTL/LTL), and operating regions.

🚀 Final Thoughts

Asset utilization is one of the most important KPIs in modern freight logistics — directly affecting revenue, sustainability, and operational efficiency.

Carriers that invest in both operational improvements and network optimization can unlock:

• Higher margins

• Lower emissions

• Better use of scarce resources

The key is to combine internal efficiency with smart commercial matchmaking — and to take a data-driven, proactive approach.

👉 Want to identify shippers that match your network?

Geobirds helps carriers increase asset utilization by identifying shippers that perfectly match their existing transport network — structurally and profitably.

Contact us to learn how.