Will your semi trailer movers soon be toting cargo for haul on greener tractor trailer models? United Parcel Service (UPS) is expanding its fleet to include 730 new alternative fuel semis. In efforts to trim fuel costs and reduce emissions, compressed natural gas will now power 19% of the shipping giant’s fleet.
How Much Green is Going Into the Investment?
To cover the cost of the 730 compressed natural gas vehicles, UPS is forking out $130-million. It is also adding 5 compressed natural gas (CNG) fueling stations to the company’s existing framework of fueling stations to accommodate the addition.
Which Truck Manufacturers are Greening-Up their Product Line?
The company’s purchases include 400 big rigs from Freightliner (Daimler North America) and Kenworth (Paccar), as well as 300 semi trailer movers for toting trailers to their new digs.
Why’s the Company Shifting Gears?
The investment is part of a broad, company-wide effort to reduce greenhouse gas emissions from ground operations 12% by 2025. It comes alongside a $20-billion investment in facilities technology and automation in efforts to adjust to the household e-commerce boom, a sector which tends to be less profitable than business deliveries. Focusing on fuel, historically the biggest expense for transportation companies, UPS is aiming to keep their business in the black.
Will Others Follow?
Many others are exploring alternatives for their delivery vehicles: Anheuser-Busch has reserved hundreds of Nikola Motor Company’s hydrogen-electric trucks; Walmart and J.B. Hunt Transport are in line to test out Tesla’s all-electric big rigs; and Deutsche Post AG’s DHL supply chain and truck-leasing company Ryder are likewise jumping aboard the green vehicle bandwagon.
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