Interview: practitioners on Freight & logistics decarbonization — what they wish they knew earlier

The freight sector accounts for approximately 29% of all transportation-related greenhouse gas emissions in the United States, contributing over 450 million metric tons of CO2 annually. With e-commerce volumes projected to grow another 25% by 2027 and medium- and heavy-duty trucks representing the fastest-growing source of transportation emissions, the urgency to decarbonize freight logistics has never been greater. We spoke with fleet operators, sustainability directors, and logistics consultants across the US who shared candid insights about the realities of transitioning to cleaner freight operations—what surprised them, what failed spectacularly, and what they would advise peers just beginning this journey.

Why It Matters

Freight decarbonization sits at the intersection of climate imperatives and economic necessity. According to the Environmental Protection Agency's 2024 inventory, medium- and heavy-duty trucks emit roughly 26% of all US transportation emissions despite representing only 5% of vehicles on the road. The International Council on Clean Transportation reports that Class 8 trucks—the workhorses of long-haul freight—produce emissions equivalent to 17 passenger vehicles each.

The regulatory landscape is accelerating this transition. California's Advanced Clean Fleets regulation, finalized in 2024, mandates that manufacturers sell an increasing percentage of zero-emission trucks starting in 2024, reaching 100% for certain segments by 2035. The EPA's Phase 3 greenhouse gas standards, effective for model years 2027-2032, project a 50% reduction in emissions from heavy-duty vehicles. At least 12 states have adopted or are considering California's Advanced Clean Trucks rule, creating a patchwork of requirements that affects over 40% of the US truck market.

The economic stakes are substantial. The American Trucking Associations estimates that trucks move 72.6% of the nation's freight by weight. With diesel prices averaging $3.89 per gallon in 2024 and volatility remaining a persistent concern, fleet operators face both cost pressures and decarbonization mandates simultaneously. Major shippers including Walmart, Amazon, and IKEA have established Scope 3 emissions reduction targets that cascade requirements down to their logistics providers, creating market-driven pressure independent of regulation.

Key Concepts

Fleet Electrification: The process of transitioning commercial vehicle fleets from internal combustion engines to battery-electric or hydrogen fuel cell powertrains. For freight applications, this involves careful analysis of duty cycles, route profiles, and charging infrastructure requirements. In 2024, battery-electric trucks demonstrated viable total cost of ownership for routes under 250 miles with predictable return-to-base operations.

Transition Plan: A comprehensive roadmap documenting how an organization will shift from current operations to decarbonized alternatives. Effective transition plans incorporate vehicle replacement schedules, infrastructure investments, workforce training, and financial modeling across 5-15 year horizons. The Science Based Targets initiative now requires companies with heavy-duty vehicle fleets to include detailed transition plans in their near-term target submissions.

Benchmark KPIs: Key performance indicators used to measure and compare decarbonization progress across fleets and industry segments. Common metrics include grams of CO2 per ton-mile, percentage of zero-emission miles traveled, well-to-wheel emissions intensity, and total cost of ownership per mile. The SmartWay program administered by the EPA provides standardized benchmarking frameworks adopted by over 4,000 freight companies.

Heat Pumps in Freight: Advanced thermal management systems that use heat pump technology rather than diesel-powered auxiliary units for cab heating and cooling in trucks. This technology becomes particularly important for electric trucks where cabin climate control can significantly impact range. Modern heat pump systems demonstrate 2-3x efficiency improvements over resistive heating.

Transit and Drayage Operations: Short-haul freight movements, particularly those connecting ports, rail terminals, and distribution centers. These operations—typically under 100 miles—represent the most economically viable early adoption segment for zero-emission trucks due to predictable routes and return-to-base charging opportunities. Port drayage specifically has become a regulatory focus, with the ports of Los Angeles and Long Beach implementing zero-emission requirements for trucks operating within port complexes.

What's Working and What Isn't

What's Working

Depot charging for return-to-base fleets: Practitioners consistently highlighted overnight depot charging as the most successful electrification model. "We started with our beverage distribution routes—trucks leave the depot at 5 AM, run 120-150 miles making deliveries, and return by 3 PM," explained a fleet sustainability manager at a major beverage company. "We installed Level 2 chargers at $3,000-5,000 per unit, and the trucks charge overnight on off-peak rates. Our electricity costs run $0.08-0.12 per kWh compared to $0.45-0.55 per mile for diesel. The math works immediately."

Route optimization software integration: Several practitioners emphasized that decarbonization success came from treating it as an operations optimization problem rather than purely a technology deployment. Advanced route planning software that accounts for elevation changes, traffic patterns, and charging infrastructure has reduced energy consumption by 15-25% beyond baseline electric vehicle efficiency. One regional carrier reported that AI-driven route optimization alone reduced their diesel consumption by 12% before any vehicle replacements occurred.

Incentive stacking strategies: Successful early adopters have become sophisticated at combining federal, state, and utility incentives. The Inflation Reduction Act's Commercial Clean Vehicle Credit provides up to $40,000 per vehicle for qualified zero-emission trucks. California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) offers additional vouchers up to $120,000 for Class 8 battery-electric trucks. Combined with utility make-ready programs that cover infrastructure costs, some fleets have reduced effective vehicle acquisition costs by 50-60%.

Collaborative charging networks: Rather than each carrier building isolated infrastructure, regional collaborations have emerged as an effective model. The West Coast Clean Transit Corridor Initiative, connecting truck charging stations along I-5 from San Diego to Seattle, demonstrates how shared infrastructure can accelerate adoption while spreading capital costs across multiple users.

What Isn't Working

Long-haul electrification without charging networks: The most consistent frustration among practitioners involves long-haul routes exceeding 300 miles. "We purchased three battery-electric Class 8 tractors for what we thought were appropriate routes," shared a fleet director at a regional LTL carrier. "The 250-mile rated range translated to 180 miles in winter with a full load. We had drivers stranded twice before we restricted those trucks to shorter routes. The technology works, but the charging infrastructure for over-the-road trucking simply doesn't exist yet."

Underestimating infrastructure timelines: Multiple practitioners reported that utility interconnection and grid upgrades created project delays of 12-24 months beyond initial estimates. "We ordered trucks based on manufacturer delivery timelines," noted one logistics company's sustainability officer. "The trucks arrived in 8 months. The electrical infrastructure took 22 months. We had $2 million in assets sitting idle because we couldn't charge them."

Hydrogen fuel cell uncertainty: Despite significant attention, practitioners expressed skepticism about near-term hydrogen viability. Fuel costs remain 3-4x higher than diesel on an energy-equivalent basis, and fueling infrastructure is essentially non-existent outside of California pilot programs. "We were told hydrogen would be the solution for long-haul by 2025. We're now in 2026, and there are still fewer than 50 heavy-duty hydrogen fueling stations in the entire country," observed a transportation consultant who advises multiple Fortune 500 shippers.

Training and workforce readiness gaps: The transition requires new skills that existing technician workforces often lack. High-voltage electrical systems, battery management diagnostics, and thermal management troubleshooting represent entirely new competency areas. Several practitioners reported maintenance incidents where improperly trained technicians caused battery damage, voiding warranties and resulting in costly repairs.

Key Players

Established Leaders

Daimler Truck North America (Freightliner): The largest Class 8 truck manufacturer in North America, Daimler has deployed over 1,000 eCascadia and eM2 electric trucks since 2022. Their Portland manufacturing facility produces battery-electric vehicles at commercial scale.

Volvo Trucks North America: Volvo's VNR Electric has gained traction in regional haul applications, with notable fleet deployments at Maersk, NFI Industries, and Performance Team. The company operates a dedicated battery assembly facility in Virginia.

PACCAR (Kenworth and Peterbilt): Offering both the Kenworth T680E and Peterbilt 579EV, PACCAR has emphasized charging infrastructure partnerships through their Kenworth and Peterbilt dealer networks.

Schneider National: As one of the largest truckload carriers in the US, Schneider has committed to deploying 92 battery-electric Freightliner eCascadias in its Southern California operations, representing one of the largest commercial EV truck deployments in the country.

J.B. Hunt Transport Services: This Fortune 500 logistics company has partnered with multiple OEMs to pilot zero-emission vehicles across its intermodal and dedicated contract operations, with publicly stated goals to achieve net-zero emissions by 2040.

Emerging Startups

Einride: This Swedish-American autonomous electric freight company operates commercial autonomous truck routes in the US, partnering with GE Appliances, Oatly, and Bridgestone. Their Pod vehicles operate without cabs on controlled routes.

Harbinger Motors: Focused on medium-duty commercial vehicles, Harbinger has developed a purpose-built electric chassis platform with modular battery architecture designed specifically for delivery and vocational applications.

Forum Mobility: Rather than manufacturing vehicles, Forum Mobility is building and operating zero-emission truck charging depots, starting with major port complexes. They've raised over $400 million for infrastructure deployment.

WattEV: Operating the nation's first public electric truck charging depot in Bakersfield, California, WattEV provides charging-as-a-service and truck leasing to carriers who cannot make large capital investments.

Gatik: Specializing in middle-mile autonomous delivery, Gatik operates commercial routes for Walmart, Kroger, and Loblaw using Class 3-6 electric and autonomous-ready vehicles on fixed routes.

Key Investors & Funders

Amazon Climate Pledge Fund: Amazon's $2 billion venture fund has invested in multiple freight decarbonization companies including Rivian, Infinium, and Turntide Technologies.

Breakthrough Energy Ventures: Bill Gates' climate-focused fund has backed sustainable freight companies including Einride, Boston Metal (for green steel in truck manufacturing), and CarbonCure.

California Air Resources Board (CARB): Through programs like HVIP and the Clean Truck and Bus Voucher Project, CARB has distributed over $800 million in incentives for zero-emission commercial vehicles since 2019.

US Department of Energy: The Joint Office of Energy and Transportation has allocated $7.5 billion for EV charging infrastructure, with specific funding streams for medium- and heavy-duty vehicle charging.

BlackRock Infrastructure Partners: Through various infrastructure funds, BlackRock has invested in truck charging networks and logistics electrification platforms.

Examples

1. Penske Logistics and Schneider Electric Distribution Center (Southern California): In 2024, Penske deployed 15 Freightliner eCascadia trucks for dedicated routes serving Schneider Electric's distribution network in the Inland Empire. Operating 180-mile daily routes with overnight charging, the fleet achieved a 92% uptime rate and reduced per-mile operating costs by 31% compared to diesel equivalents. Total infrastructure investment of $1.8 million was offset by $1.1 million in combined HVIP vouchers and utility incentives.

2. NFI Industries Port Drayage Operations (Ports of Los Angeles/Long Beach): NFI's zero-emission drayage program now operates 50+ battery-electric trucks moving containers from port terminals to regional distribution centers. With average haul distances of 45 miles and 3-4 turns per day, the fleet demonstrates that high-utilization drayage operations achieve total cost of ownership parity with diesel. NFI reports maintenance costs 40% lower than diesel equivalents and driver satisfaction scores significantly higher due to reduced noise and vibration.

3. PepsiCo Frito-Lay Electric Delivery Fleet (Modesto, California): PepsiCo's Frito-Lay division operates over 120 electric delivery vehicles at its Modesto facility, including medium-duty trucks and step vans. The facility installed 1.5 MW of on-site solar generation paired with battery storage, enabling net-zero charging operations. Fleet managers report 75% reduction in fueling costs and elimination of $50,000 annually in preventive maintenance expenses related to diesel engines.

Action Checklist

• Conduct a comprehensive duty cycle analysis of your current fleet to identify routes under 200 miles with predictable return-to-base patterns as priority electrification candidates
• Engage your local utility 18-24 months before planned vehicle deployments to assess grid capacity and begin interconnection applications
• Map available federal, state, and local incentives using resources like the Alternative Fuels Data Center and calculate stacked incentive scenarios for financial planning
• Develop a phased transition plan with 2-3 year milestones that aligns vehicle procurement with infrastructure readiness
• Establish baseline emissions metrics using SmartWay or GLEC Framework methodologies to enable accurate progress measurement
• Invest in technician training programs for high-voltage systems, including partnerships with OEM certification programs and community college technical programs
• Evaluate charging-as-a-service and truck leasing options to reduce upfront capital requirements and transfer technology risk
• Engage with industry consortiums and corridor initiatives to access shared infrastructure and collective purchasing power
• Communicate transition plans to major shippers and customers, as many are actively seeking logistics providers with credible decarbonization strategies
• Pilot 2-5 vehicles before large-scale procurement to validate real-world performance against manufacturer specifications in your specific operating conditions

FAQ

Q: What is the realistic total cost of ownership comparison between electric and diesel trucks in 2025? A: For regional haul applications under 200 miles with return-to-base charging, battery-electric trucks are approaching TCO parity and in some cases demonstrate 10-20% savings over diesel equivalents when incentives are included. The primary variables are electricity rates (off-peak rates below $0.10/kWh significantly favor EVs), utilization rates (higher utilization accelerates payback), and maintenance savings (EVs demonstrate 30-50% lower maintenance costs). Long-haul applications over 300 miles currently favor diesel on TCO until charging infrastructure matures.

Q: How should carriers approach the diesel vs. hydrogen vs. battery-electric decision for long-haul trucking? A: Practitioners recommend a pragmatic phased approach. For routes under 300 miles, battery-electric technology is commercially viable today. For routes between 300-500 miles, emerging megawatt charging standards and next-generation batteries with 500+ mile range may enable electrification by 2028-2030. For routes exceeding 500 miles, hydrogen fuel cells remain a potential solution, but carriers should avoid making large bets until fueling infrastructure materializes. Many practitioners recommend renewable diesel or renewable natural gas as bridge fuels for long-haul applications while zero-emission technology matures.

Q: What infrastructure mistakes do early adopters most frequently cite? A: The three most common infrastructure mistakes are: (1) underestimating utility interconnection timelines by 12-18 months, (2) installing insufficient charging capacity for fleet growth and failing to future-proof electrical infrastructure, and (3) neglecting to account for demand charges that can represent 30-50% of monthly electricity costs for high-power fast charging installations. Practitioners strongly recommend engaging utility representatives as early as possible and considering make-ready programs that shift infrastructure costs to utilities.

Q: How are shippers responding to carrier decarbonization capabilities? A: Major shippers with Scope 3 emissions targets increasingly include sustainability requirements in RFPs and carrier scorecards. Amazon, Walmart, IKEA, and Apple have publicly stated preferences for logistics providers demonstrating emissions reduction progress. Some shippers offer premium rates for verified low-emission shipping options. The Sustainable Freight Buyers Alliance, representing over $100 billion in annual freight spend, actively promotes shipper-carrier collaboration on decarbonization and publishes carrier sustainability benchmarks.

Q: What regulatory developments should decision-makers monitor over the next 2-3 years? A: Key regulatory developments include: state adoption of California's Advanced Clean Fleets rule (currently adopted or under consideration in 12+ states), EPA Phase 3 greenhouse gas standards implementation for model years 2027-2032, potential Scope 3 emissions disclosure requirements under SEC climate rules, and Clean Truck Corridor designations under FHWA that may prioritize charging infrastructure deployment along specific interstate routes. Practitioners recommend tracking regulatory developments through industry associations like the American Trucking Associations and Clean Freight Coalition.

Sources

• Environmental Protection Agency. (2024). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022. EPA 430-R-24-004.
• California Air Resources Board. (2024). Advanced Clean Fleets Regulation Final Rule. Sacramento, CA.
• International Council on Clean Transportation. (2024). Update on Electric Truck Costs and Market Developments in the United States. ICCT Working Paper 2024-12.
• American Trucking Associations. (2024). ATA Freight Transportation Forecast to 2034. Arlington, VA.
• North American Council for Freight Efficiency. (2024). Electric Truck Total Cost of Ownership Analysis: 2024 Update. Fort Wayne, IN.
• Smart Freight Centre. (2024). GLEC Framework for Logistics Emissions Accounting and Reporting, Version 3.0.
• US Department of Energy, Alternative Fuels Data Center. (2025). Federal and State Laws and Incentives for Heavy-Duty Vehicles. Washington, DC.