Trucks powered by CNG are the next big alternative to diesel in Europe

CPG and Chemical companies are some of the major users of trucking logistics. And Diesel is one of the main variable cost of operating those trucks. Category managers in charge of procuring logistics services will always have to keep fuel cost into consideration - a factor which is not fully in their control.

Recent technological advancements in the area of combustion engines have paved the way for using Compressed Natural Gas (CNG) in place of diesel. Trucks fueled by CNG not only reduce carbon emissions but also cut down running expenses - a handy option for logistics managers.

Trucks powered by CNG are the next big alternative to diesel in Europe. Are CNG trucks now a reality? Of course yes. And can companies procure the services of these CNG trucks without much hassle in Europe? Well, not exactly.

Logistics service providers in Europe haven't stocked up on CNG trucks because of inadequate network of CNG refueling stations. This scenario is set to change in the next ten years as European Union has begun an initiative to expand the number of CNG stations to guarantee adequate minimum refueling across the continent. And this is the long of it.

What about benefits accruing in the short term? As of now, CNG trucks are virtually non-existent across vast swathes of Europe. Logistics category managers, who are looking to hire CNG trucks, can now do so only in Germany and Italy and that too only for short haul distances.

Beroe's Shijith Ajithkumar and Bryce Jose spoke about the evolving dynamics in the European trucking market in a webinar. Besides highlighting the cost advantage of CNG trucks, the duo also discussed how in the coming years CNG trucks will play a key role in the logistics domain. To watch the discussion, please click here.

They also provided data points on the current inventory of trucks in different economic regions of Europe.

Key Takeaways

• Cost benefits of using CNG trucks as opposed to Diesel trucks in Europe
• Natural gas infrastructure availability in Europe
• Case examples of companies investing in refueling infrastructure and CNG trucks in Europe