Fleet of the family-owned company Hilker GmbH & Co. KG. The company has 100 tractor units, 70 of them gas-powered and two electric vehicles. (Source: Volvo Trucks)

Rising diesel prices push operators towards LNG and electric trucks

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Rising diesel prices are putting freight forwarders under increasing pressure. While some companies can barely pass the costs on to their customers, others are stepping up their shift to alternative drivetrains. A look at current practice paints a nuanced picture.

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Sharply rising fuel prices as a result of geopolitical tensions in the Middle East are placing a significant burden on the transport industry. At the same time, the situation is accelerating a trend that has been emerging for years: companies are increasingly looking for alternatives to conventional diesel.

What’s becoming clear is a complex mix of economic pressure, technological opportunities and operational constraints.

Fuel costs push operators to the limit

How tense the situation currently is is illustrated by a report from Nordkurier on the Heinrich Gustke haulage company from Rostock. Managing Director Stephan Gustke describes the impact clearly:

“We consume around 250,000 litres of fuel per month. With an increase of €0.40 to €0.50, you can do the maths: we quickly end up with €100,000 in additional costs per month, which we can’t recover 100 percent from the customer like this.”

The result: routes are being reviewed, and in some cases even rejected. According to Gustke, smaller companies in particular are coming under increasing pressure:

“If a company has certain reserves, at some point those reserves are used up. Then, for the managing director, there’s really only one option: go to the local court and file for insolvency.”

LNG is gaining importance – mainly for cost reasons

In parallel, more and more companies are turning to gas-powered trucks. According to Volvo Trucks, haulage companies in Germany and across Europe are increasingly opting for vehicles running on LNG or bio-LNG.

One example is Hilker GmbH & Co. KG from Lower Saxony: of 100 tractor units, 70 already run on gas, and more vehicles have been ordered.

Managing Director Stefan Hilker explains:

“With the decision in favour of LNG and especially bio-LNG, we are relying on a sustainable, high-performance and reliably available fuel.”

He also sees economic advantages:

“I can’t confirm the myth that LNG is permanently too expensive. Looking at the overall picture, since 2020 we have been operating more economically with LNG than with diesel-powered vehicles.”

According to Volvo, bio-LNG models in particular can offer cost advantages over diesel depending on the operating profile. Added to this are more stable pricing structures and a growing infrastructure; Germany now has around 200 LNG filling stations.

Electrification is moving forward – with clear limits on use cases

While LNG is gaining importance primarily in long-haul transport, a different trend is emerging in regional distribution: electrification.

The Dutch logistics service provider Simon Loos has recently ordered 75 additional Mercedes-Benz eActros 600. This brings the company’s e-truck fleet to 210 vehicles, which it says is one of the largest in Europe.

Fleet manager Wim Roks reports that the vehicles have proven themselves in real-world operation. The new e-trucks are intended primarily for food distribution. This makes it clear: electric drivetrains already work today – but mainly in predictable, regional operating profiles.

“Anyone calling for e-trucks now doesn’t understand reality”

However, assessments from the field also highlight the limits of current developments. Gustke says:

“I do think that e-mobility and hydrogen will become increasingly important in the coming years. But right now, you have to be honest: if someone tells me, ‘then just buy e-trucks’, they haven’t understood the situation.”

This assessment reflects the reality for many transport companies: investing in new drivetrains is strategically necessary, but in the short term it’s often difficult to implement.

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