Physical Internet: where we stand and why it will change global logistics

A graphic representation of the Physical Internet: smart containers connected in a global sustainable logistics network.

Introduction

The concept of the Physical Internet (PI) is proposed as a radical transformation of the ways in which goods are moved and managed globally. Inspired by the operating principles of the digital network, the PI aims to make logistics more efficient, sustainable, and interoperable through a modular and collaborative network.

In light of the growing needs for sustainability, traceability, and resilience of supply chains, the PI is configured as an emerging paradigm of strategic importance to face the challenges of the 21st century.

This contribution is based on the systematic analysis conducted by Maria Matusiewicz (Acta Logistica, 2024), who examined 74 scientific articles published between 2006 and 2023, with the aim of mapping the state of research, identifying recurring themes, and proposing future research directions.

What is the Physical Internet

The Physical Internet is based on four conceptual pillars:

  1. Modularity: physical standardization (e.g. PI-containers) to promote interoperability.
  2. Sharing: openness and collaboration among logistics chain stakeholders.
  3. Digitalization: use of enabling technologies (IoT, blockchain, AI).
  4. Sustainability: optimization of physical flows to minimize costs, waste, and environmental impact.

This vision aims to overcome the current fragmentation of supply chains, fostering the emergence of a global, hyperconnected, and adaptive logistics system.

State of Research: A Systematic Literature Review

Temporal Evolution

Until 2020, research on PI was predominantly conceptual. Starting from the COVID-19 pandemic, there has been a exponential increase in applied studies, driven by the urgency of rethinking supply chain resilience. Between 2020 and 2023, a peak of publications was recorded, especially in Europe and Asia.

Geographic Distribution

The countries with the greatest scientific involvement are:

  • – France: main theoretical incubator of PI (MINES ParisTech, Montreuil et al.).
  • – United States and China: focused on technological implementations and applications in complex contexts.
  • – Canada, Germany, and the United Kingdom: significant contributions in terms of infrastructure, interoperability, and sustainability.

Multidisciplinarity

The PI is an interdisciplinary field par excellence:

  • – Transport engineering and logistics (27.7%)
  • – Computer science and data analytics (18.1%)
  • – Economics and management (11.2%)
  • – Social and environmental sciences (13.3%)

This heterogeneity reflects the complex nature of the PI, which requires integrated approaches among technical, economic, and regulatory domains.

Emerging Themes and Research Trends

1. Operational Efficiency and Sustainability

Numerous studies highlight how PI enables:

  • – the reduction of empty transports (up to 40%)
  • – the containment of energy costs
  • – the increase in logistics flexibility also in urban areas (city logistics)

The work of Crainic and Montreuil (2016) proposes a model applicable to the urban context that improves distribution efficiency and reduces environmental impact.

2. Integration with Industry 4.0 Technologies

Among the enabling technologies:

  • – IoT and Digital Twin for real-time simulation
  • – Blockchain for information flow security
  • – Smart Contracts for the automation of logistics transactions
  • – AI and metaheuristic algorithms for cost and route optimization

Pan (2019) highlights the importance of Product-Service Systems (PSS) in the PI context, enabling a logistics-as-a-service model.

3. Pricing Models and Economic Optimization

Qiao et al. (2020) propose an approach based on dynamic pricing for LTL (Less-than-Truckload) transport, demonstrating how PI networks can maximize revenues through flexible adaptation of supply to demand.

4. Cooperation Among Logistics Actors

The PI presupposes a new cooperative mindset, overcoming competition among logistics operators. However, numerous studies still highlight cultural resistance linked to lack of trust, data opacity, and the absence of shared incentives.

5. Port and Urban Applications

In the port context, the PI promotes:

  • – the standardization of information
  • – the adoption of intelligent traceability systems
  • – the integration of intermodal PI-hubs

Fahim et al. (2021) provide a mapping of critical areas in ports to support the evolution toward a PI-ready infrastructure.

Challenges and Future Perspectives

The full implementation of PI requires:

  • – Definition of common international standards
  • – Regulatory and legal framework
  • – Infrastructure investments
  • – Incentives for operator collaboration
  • – Mitigation of cybersecurity risks

One of the less explored areas is the application of PI to passenger transport: although some studies mention the sharing of infrastructure and urban fleets, the systematic analysis reveals a significant gap in this field.

Conclusions

The Physical Internet is configured as a logistics paradigm of revolutionary potential, capable of promoting efficiency, transparency, and sustainability along the entire value chain. Data from the literature highlight a strong theoretical maturity and several ongoing application experiments, but also the need to address cultural, regulatory, and technological barriers.

The success of PI will depend on the cooperation between academia, industry, and institutions as well as the ability to build a shared, resilient, and scalable digital and physical infrastructure.

https://youtu.be/O-8OQZYqNi4

The logistics of the future will not be based on competition between actors but on the intelligent sharing of resources.

Jean-François Cordeau.

Department of Logistics and Operations Management – HEC Montréal

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