As the freight industry grapples with the imperative to transition towards zero-emission operations, a recent discussion at the ACT Expo in Anaheim emphasised the necessity for shippers and carriers to collaborate more effectively. Executives from major players such as Amazon Freight, IMC Logistics, Unilever, and WattEV addressed both the urgency of decarbonisation and the practical challenges that accompany such a monumental shift.
Ari Silkey, General Manager at Amazon Freight, illustrated the company’s commitment over the past eight years to build a robust infrastructure aimed at facilitating a sustainable transport network. With Amazon’s 2019 climate pledge solidifying its strategic approach, Silkey detailed how the company’s investments in technology—including mobile applications and logistics interfaces—have evolved, now enabling them to manage a transportation network that serves multiple shippers. To date, Amazon has deployed over 3,000 compressed natural gas (CNG) trucks powered by renewable natural gas in the U.S., signalling a significant leap towards its ambitious operational goals.
The barriers to achieving zero-emission goals remain daunting. Jim Gillis, President of IMC Logistics’ Pacific region, acknowledged that while the company has set a target for a zero-emission fleet by 2028, less than 10% of its trucks currently meet that standard. Gillis attributed this gap to the shifting landscape of customer expectations, where cost pressures have exacerbated the challenge. “Just 24 months ago, customers were willing to absorb higher costs for green technologies,” he noted, reflecting on the economic volatility that has tempered enthusiasm for investments in sustainability.
Unilever is taking strides towards sustainability as well, with Andrew Sylling, the company’s head of procurement for logistics in North America, reporting a 30% reduction in emissions since 2020. The corporate giant aims for a further 42% reduction in Scope 3 emissions by 2030. Yet, Sylling emphasised the need for aligning organisational goals across all levels, advocating for a pragmatic approach: “Don’t let perfection be the enemy of progress.” For Unilever, meaningful advancements can occur through renewable diesel projects and strategies that embrace tangible actions rather than waiting for ideal conditions.
WattEV’s CEO, Salim Youssefzadeh, highlighted that creating a viable framework for zero-emission freight hinges not solely on ambitious goals but on practical implementation. The company is growing its network of charging sites with a focus on high-utilisation routes to ensure profitability. He pointed out that charging efficiency is a significant barrier to the widespread adoption of electric trucks, noting that advancing megawatt charging technology could drastically reduce charging times—a crucial step towards making electric freight a more appealing option.
The importance of pilot projects in testing new technologies was a recurring theme among the panelists. These pilots offer invaluable insights that could facilitate scaling successful initiatives, provided they are set up with expansion in mind. Silkey stated, “Everything starts with a concept and a pilot… We always learn a ton in a pilot,” underscoring the role of structured testing in validating new solutions. Yet even successful trials face obstacles related to contractual stability, which is essential for fostering long-term partnerships that can support up-front investments in green technologies.
Gillis reiterated the need for multi-year contracts, which he sees as critical to aligning efforts between shippers and carriers. Unilever’s experience reinforces this notion, as their efforts to deploy natural gas-powered vehicles relied on established contracts of three years or more. Utilizing longer terms allows fleets to optimise their planning and deploy necessary infrastructure effectively, a strategy echoed by Youssefzadeh at WattEV.
Despite these steps forward, the industry faces persistent challenges. Gillis pointed to the fluctuating prices of hydrogen fuel as an area of concern, particularly in California where infrastructure for hydrogen is limited. The volatility in pricing has deterred investment and complicated the landscape for zero-emission technologies, with Gillis asserting the need for hydrogen to be competitively priced below $10 per kilogram to gain traction among fleet operators.
With various stakeholders entering a critical phase in the transition towards decarbonised freight, the call to share risks and resources has never been stronger. Achieving a sustainable transportation network will demand innovative strategies and steadfast partnerships, reinforcing the notion that while the road ahead is fraught with challenges, collaborative efforts can chart a viable path toward meaningful change.
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Source: Noah Wire Services
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