Executive Briefings

High Interest Seen in LNG-Powered Vehicles for Industrial Freight, But Adoption Remains Slow

Natural gas prices are at a 10-year low, and this has increased industry interest in the feasibility of natural gas vehicles for transporting freight. While compressed natural gas (CNG) vehicles are appropriate for "return-to-base" vehicles like school buses, garbage trucks and local delivery trucks, liquefied natural gas (LNG) vehicles, because of their increased range, are currently a better option for long-haul, heavy-duty trucking.

Adoption of LNG within the transportation industry is limited, but there are decided advantages to more widespread adoption by shippers and carriers, including:

• Reduced fuel cost

• Reduced price volatility based on use of a domestic fuel source

• Reduced carbon emissions

• Support growth of the North American natural gas industry and the attendant economic impact

Within the heavy industrial sector, trucking has unique characteristics that challenge LNG adoption.  To determine the potential of LNG vehicle use for industrial freight, PLS Logistics surveyed senior executives at 100 industrial freight carriers in the first quarter of 2012.   Most carriers surveyed had a fleet size of more than 50 power units.

The majority of survey respondents (76.1 percent) were either aware of LNG technology or were actively analyzing its use.  However, no one surveyed is planning to purchase LNG vehicles in 2012.

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Keywords: Transportation & Distribution, LTL/Truckload Services, Third-Party Logistics, Logistics, Business Strategy Alignment, Environmental, Supply Chain Analysis & Consulting, Global Supply Chain Management, Reducing Greenhouse Gas Emissions, Truck Fleet Carbon Count

Adoption of LNG within the transportation industry is limited, but there are decided advantages to more widespread adoption by shippers and carriers, including:

• Reduced fuel cost

• Reduced price volatility based on use of a domestic fuel source

• Reduced carbon emissions

• Support growth of the North American natural gas industry and the attendant economic impact

Within the heavy industrial sector, trucking has unique characteristics that challenge LNG adoption.  To determine the potential of LNG vehicle use for industrial freight, PLS Logistics surveyed senior executives at 100 industrial freight carriers in the first quarter of 2012.   Most carriers surveyed had a fleet size of more than 50 power units.

The majority of survey respondents (76.1 percent) were either aware of LNG technology or were actively analyzing its use.  However, no one surveyed is planning to purchase LNG vehicles in 2012.

Read Full Article


Keywords: Transportation & Distribution, LTL/Truckload Services, Third-Party Logistics, Logistics, Business Strategy Alignment, Environmental, Supply Chain Analysis & Consulting, Global Supply Chain Management, Reducing Greenhouse Gas Emissions, Truck Fleet Carbon Count