XPO, Inc. reported that it earmarked more than $200 million to purchase approximately 1,600 new tractors in North America in 2023.
In this regard, the company reported that supply chain challenges related to the Covid-19 pandemic delayed the retirement of older tractors over the past two years.
So now that new vehicles are increasingly available, the company will continue to introduce trucks with 15-liter engines and automatic transmissions that improve reliability and fuel economy while reducing emissions and extending engine life.
Financial results of XPO
The company has a natural gas-powered fleet of more than 250 trucks in total in France, the United Kingdom, Spain and Portugal, and across Europe, more than 95% of its on-road diesel fleet is Euro VI compliant.
Other fleet initiatives range from its government-approved mega-trucks in Spain, which can carry more freight with fewer trips, to all-electric vehicles for certain last-mile deliveries.
XPO is also testing the use of double-trailer vehicles that can reduce CO2 emissions by 25-30% per trip compared to traditional transport of the same load.
XPO
The company’s business relies heavily on the availability and price of diesel to provide its transportation services.
In 2021, the company switched to 100% premium diesel for its LTL fleet.
In 2021, the company switched to 100% premium diesel for its LTL fleet.
Because premium diesel has more cetane (analogous to gasoline octane), it burns cleaner, lubricates better and runs smoother.
On the road, this translates into fuel savings of between 1.8 and 2.5%, with consequent reductions in carbon emissions.
In addition, in the United States, the company has placed an order for 20 electric trucks to deploy in California, and recently announced an agreement to purchase more than 100 all-electric trucks in France to improve the sustainability of its fleet, supported by the installation of more than 80 electric charging stations at its sites.
In Europe, XPO is expanding the use of trucks powered by hydrogen-treated vegetable oil (HVO), especially in the United Kingdom, and is responding to customer demand for multimodal solutions designed to significantly reduce the carbon footprint of goods movements by relying less on diesel trucks.
As of December 31, 2022, the company had approximately 38,000 employees and 554 locations in 17 countries serving some 48,000 customers.
