Physical
Internet

Towards a connected, efficient, and sustainable logistics network

The Physical Internet (PI) is a global vision for freight transport and logistics based on universal open standards, physical and digital interconnectivity in freight transport and logistics. It is inspired by the digital internet and application of its principles to the movement of goods, enabling them to be transported, handled and stored seamlessly across different networks, modes of transport, logistics nodes and service providers.

Just as data flows across the internet using common protocols, goods in the logistics networks that are PI compliance are packaged, routed, and handled seamlessly. Companies in the PI network can easily share and access resources for smooth operations.  This allows them to move goods efficiently in the supply chain, whether by truck, train, ship, or inland waterway, without unnecessary delays, duplication, or waste.

Why does the Physical Internet matter?

Today’s logistics networks are often fragmented, with operators working in isolation due to the incompatibility of systems and high integration costs hampering collaboration opportunities.  This results in empty journeys, difficulties to arrange and be part of multimodal transport networks, underused assets and higher operational costs, as well as increased greenhouse gas emissions. The PI addresses these challenges by:

• • Enabling interoperability: common processes, packaging standards and digital interfaces make it possible for different logistics actors to work together effortlessly.
  • Reducing environmental impact: shared resources and optimised routing help to reduce energy use, congestion and CO₂ emissions.
  • Improving resilience: a connected network can better absorb disruptions and adapt to changes in demand or infrastructure availability.

For strategic guidance on the development and adoption of the Physical Internet across industry and policy frameworks, see the ALICE Physical Internet Roadmap,  which outlines key development areas and milestones to be achieved by 2040.

Benefits for different stakeholders

The Physical Internet offers tangible advantages for a various actor in the logistics ecosystem:

• • For shippers: Better access to capacity, faster delivery options, more predictable costs, and measurable progress toward sustainability targets.
  • For logistics service providers:  Greater network reach, optimised load factors, reduced operational waste, and compliance with emerging EU standards.
  • For technology developers: Opportunities to integrate digital tools into an open, interoperable logistics ecosystem, with high demand for real-time data solutions.

The PI is more than a theoretical model. Early adoption is already underway, with standardised packaging systems, collaborative platforms, and digital freight exchanges emerging in several regions. These developments are supported by new governance structures, such as coalitions and working groups, which guide standard-setting and encourage alignment between industry, policymakers, and researchers.

As adoption grows, the PI is expected to transform logistics operations, making them more cost-effective and environmentally friendly while ensuring they can meet the demands of modern supply chains.