IRU spoke to UPS about the real-world challenges of decarbonising logistics fleets. Without urgent investment in grid capacity, depot charging and energy storage, even the most advanced electric vehicles risk standing idle.
As Europe accelerates its decarbonisation agenda, logistics operators are investing heavily in zero-emission fleets. But for companies like UPS, the biggest challenge is no longer vehicle availability, it is the infrastructure needed to operate them at scale.
UPS Vice President, Hub and Feeder, Europe, Middle East, Africa and India, Reinhold Beutel, said, “In preparing for our 2050 carbon-neutrality target, we are making smart, future-focused investments in cleaner technologies and alternative fuels that benefit both our business and our customers. UPS is on track to meet its 2025 targets of 25% renewable electricity and 40% alternative fuel use, particularly in Europe’s urban delivery networks."
IRU member UPS operates a mixed fleet that reflects the complexity of the logistics sector. Its light commercial vehicles, or package cars, handle last-mile deliveries, while heavy-duty feeder trucks connect hubs and distribution centres. For now, electrification efforts focus primarily on light commercial vehicles, where the operational profile allows for overnight charging and more manageable daily ranges.
However, even for these smaller vehicles, infrastructure challenges are significant. “We need to charge our package cars overnight, in depots, when vehicles are not in use. Public charging infrastructure works for private cars, but not for our type of fleet,” explained Reinhold Beutel.
Installing in-depot charging infrastructure is a long and complex process, often slowed by local permitting and licensing bottlenecks. Even where permits are obtained, many local power grids simply lack the capacity to meet the energy demands of an electric fleet.
The challenge grows substantially for heavy-duty vehicles. “A package car typically needs 36 kilowatt-hours to cover 100km,” said Reinhold Beutel. “But a heavy-duty express vehicle running 400km daily will require at least 558 kilowatt-hours, that is 15 times more energy per vehicle. We not only need much more power, but also the capacity to charge these vehicles quickly, which puts even greater pressure on grid capacity."
In many locations, existing grids are not designed for such high demand. “We need far more grid capacity and local energy storage systems to ensure uninterrupted energy supply,” he added. “And that raises serious questions: where will the electricity come from, who guarantees its reliability, and who will finance the required grid upgrades?”
While policymakers increasingly focus on setting targets for the uptake of zero-emission vehicles, Reinhold Beutel warns that such targets alone will not solve the real bottlenecks. “Purchase targets will not speed up permitting, strengthen the grid, or build infrastructure overnight. Without adequate infrastructure, we risk having a shiny fleet of zero-emission vehicles sitting idle, unable to operate.”
Instead, UPS calls for coordinated policy action focused on scaling up grid capacity, streamlining permitting processes, and investing heavily in charging infrastructure, both public and depot-based. Public funding will play a critical role in ensuring the necessary upgrades can be made quickly and at scale.
“Massive public investment is needed to make this transition happen. Without robust, future-proof energy infrastructure, fleet decarbonisation will remain limited, not because the vehicles are not ready, but because the power is not,” concluded Reinhold Beutel.