Ideas on building sustainability in fleet operations

Experts from XPO and DP World have highlighted the logistics industry’s eagerness to adopt electric vehicles (EVs) despite facing obstacles such as the cost of charging infrastructure. Fleet managers are moving from questioning the viability of EVs for their operations to strategizing the most effective transition towards electric power. This shift reflects a broader understanding of electric vehicles’ role in achieving commercial sustainability amidst modern challenges, unlike during the late industrial revolution. 

A significant majority, 79% of fleet decision-makers, acknowledge the availability of EVs that meet their business requirements, particularly for commercial vans and light-duty vehicles. However, transitioning heavy goods vehicles (HGVs) and bulk transportation to electric or alternative fuels like hydrogen presents a more daunting task. Dr. Nicholas Head, XPO’s Head of Sustainability for the UK and Ireland, points out the current impracticality of fully electrifying large fleet operations by the end of 2024 due to three major challenges, including the time needed to finance and integrate new technologies into the market. 

Head further notes that while the commercial van sector is ready for electrification, thanks to extensive testing and deployment, the HGV segment is still in its infancy, requiring more time to build confidence among fleet operators. 

Related: Is the future of transportation all electric?

DP World’s VP of Port Operations for the London Gateway, Ahsan Agha, sheds light on another perspective, emphasizing the high costs associated with electrifying non-roadworthy equipment like container handlers. Agha points out that 2022’s electricity price volatility and the need for enhanced grid capacity complicate the transition to all-electric operations. 

The narrative also touches on the role of smart, digital technologies in optimizing energy use and managing operations more efficiently, potentially offsetting the costs of electrification. However, the lack of sufficient charging infrastructure remains a significant barrier, with calls for increased investment in grid and distribution networks to support the charging demands of the logistics sector. 

Sustainability Magazine discusses how logistics companies can utilize existing smart technologies to manage their fleets more effectively, even with the limited public charging infrastructure currently in place. This approach could facilitate longer trips and improve the overall efficiency of delivery operations, setting the stage for more collaborative efforts to expand charging solutions for the logistics industry in the future.