Goods flows are flows of certain types of goods (freight) that move along certain traffic routes, transport corridors or routes, and are the basis of world economic development and progress of each continent, region and country. Therefore, being involved in goods flows is imperative for any country looking for rapid and robust economic development. The today intensity and quantity of goods flows are subjects to the scale of utility of traffic, participation in the international division of labor and degree of economic development of states. In order to understand the structure and movement of goods flows, it is necessary to define the basic characteristics of goods flows and the factors of their formation. In this context, the importance of goods flows, which, as a subsystem of traffic flows and an integral part of the transport system, influences the foreign trade and economic system of national, regional and global world spaces. Well-developed goods flows can increase effectiveness, efficiency, reduce operating costs, etc. Therefore, this paper will explain functions of goods flows in optimizing logistics costs by analyzing Europe's goods flows.