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Topic of the week: Sustainable Trucking in Disarray
Sustainable trucking is facing significant challenges, with high costs, insufficient investment, and a lack of a clear infrastructure framework hindering progress for manufacturers and fleet operators. The recent announcement by Stellantis-owned Vauxhall to scrap plans for a hydrogen-powered van has been met with disappointment, with FleetCheck CEO Peter Golding describing it as a "major blow" to the industry.
The lack of refuelling infrastructure, high investment costs, and limited incentives to buy hydrogen-powered vehicles have all contributed to the decision. However, Golding notes that hydrogen has the potential to offer zero emissions without the compromises of electrification, such as range and charging time limitations. The absence of a refuelling infrastructure means that there is no way forward for hydrogen-powered vehicles, at least for now.
BMW have also announced that it will not sell its new hydrogen car in the UK due to the lack of fuelling facilities. This is not an isolated issue, as companies are having to weigh their options for sustainable trucks in each country. Dachser CEO Burkhard Eling notes that the problem is the infrastructure, with a lack of 1,000 kilowatt charging power in branches being a major hurdle. He emphasises the need for certainty and a clear understanding of what steps need to be taken to decarbonise fleets, including investment in infrastructure and toll reductions for CO2 emission-free trucks.
The challenges faced by manufacturers are also evident, with Volta Trucks, which counted DB Schenker among its launch customers, forced into administration in 2023 and then restarting with new owners earlier this year. The company blamed governments for its second closure in May this year, citing a decline in government support and subsidisation throughout Europe, as well as a trend towards less capital investment from the private sector.
In the meantime, some companies are exploring alternative options, such as biofuels. Geodis has opted for a biofuel-powered fleet in the UAE, while Descartes emphasises the need for smarter fleet management to support logistics businesses. The company notes that the challenge of purchasing an EV goes beyond simple vehicle costs, and that more needs to be done to support businesses still hindered by a transition to electric vehicles.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have decreased by 1.4% from $2,368/FEU to $2,334/FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have fallen over the last two weeks, decreasing by 15.9% to $4,113/FEU.
- Global container spot prices have fallen over the last two weeks, and are now sitting at $2,369/FEU, a 6.8% decrease over the last two weeks and a 51.9% decrease from spot rates this time in 2024 according to the Freightos Baltic Index (FBX)
Air:
- Global Air Freight spot rates currently sit at $2.39, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $1.77 (100-3000kg), says FAX, decreasing by 1.1%.
- Europe to Asia, Greater China spot rates currently sit at $1.15 (100-3000kg), says FAX, remaining unchanged.
