Expeditors (EXPD) investor relations material

Key trends in sustainable logistics and supply chain

• Industry focus has shifted from sustainability ambition to practical execution and real-world impact, with decarbonization now a central operational concern.

• Smart Freight Week highlighted the move toward zero emission trucking, with regulatory and infrastructure developments accelerating adoption.

• EU regulations will significantly increase diesel truck costs by 2030, incentivizing electric truck adoption and supporting infrastructure like charging stations.

• Road toll exemptions and city bans on diesel trucks are making electric trucking more economically viable.

• Investment and commitments are growing for electric trucks, with cost parity nearly achieved in key European corridors.

Infrastructure and operational challenges

• Grid capacity and charging infrastructure are critical bottlenecks, especially at ports and warehouses.

• Securing electricity supply is becoming a strategic asset, with long lead times for upgrades anticipated.

• Depot charging with solar panels can significantly reduce operational costs compared to highway charging.

• Upgrading warehouse infrastructure for truck charging can be costly and time-consuming, but partnerships with energy providers can offset CapEx.

• Opening charging infrastructure to third parties can further reduce costs and increase resilience.

Sustainable fuels and regulatory landscape

• HVO (hydrotreated vegetable oil) biofuel is now widely available in Europe, reducing emissions by up to 90% but at a 10-15% cost premium.

• EU's RED III legislation mandates increased biofuel blending in standard diesel, but only dedicated insetting can claim CO2 reductions.

• Diesel prices are set to rise further due to postponed but impending ETS2 regulations and ongoing policy design.

• The consensus is that electric trucking is the future, with hydrogen and CNG no longer seen as viable alternatives.