Growing Your EV Fleet: A Q&A with FedEx

Electric trucks can deliver many benefits to a fleet but introducing them can be challenging. Fleets can set themselves up for success by learning from others, like FedEx, who are traveling the electrification highway ahead of them. Educational resources like EDF’s Fleet Electrification Solution Center can also be helpful.

The FESC is a free online tool that helps fleets by breaking down the electrification journey into 5 comprehensive and actionable phases. In previous Work Truck articles, we’ve discussed how to begin electrifying a fleet by learning about the existing landscape in Phase 1, applying those learnings to identify what is possible for your fleet in Phases 2 and 3, and how to turn those plans into a deployment in Phase 4.

In this installment, we met with FedEx Ground^® and FedEx Express^® about how to scale-up and expand deployments, Phase 5 of the electrification process. 

Q: Tell us a bit about the FedEx fleet and your experience on the electrification journey.

- Bill Cawein, Manager - Technology & Integration, Global Vehicles, FedEx Express: In March 2021, FedEx announced an ambitious, company-wide goal to achieve carbon neutral global operations by 2040. Transitioning the entire global pickup and delivery fleet to zero-tailpipe emissions vehicles by 2040 is part of this goal.

FedEx Express first tested electric vehicles (EVs) in its network back in 2006—with EDF —knowing that this technology would eventually revolutionize the industry. Last year we took delivery of our first batch of EVs in the U.S. for use in our operations in Southern California, with more to come. Internationally, FedEx Express started its electrification journey in 2014 and has a variety of electric vehicle original equipment manufacturers (OEMs) in the Americas, India, Europe, and Asia-Pacific.

The FedEx Express operation is an owned & operated vehicle business model. We cover electricity needs for EVs at our own facility and have FedEx technicians manage maintenance for our vehicles, requiring them to be trained for high-voltage equipment, tooling, and proper OEM certifications to be able to work on EVs.

- Lonnie Mattison, Manager - Sustainability, FedEx Ground: Over at FedEx Ground, we have a different vehicle business ownership model wherein our contracted service providers (CSPs) own their vehicles. FedEx Ground’s journey to achieving the enterprise’s 2040 carbon-neutral operations goal starts with a focus on building out our EV charging infrastructure. We’re taking a strategic approach, targeting select facilities based on demand and regulatory requirements.

Q: Why is a fleet-wide electrification strategy more feasible now than before?

- Cawein: The market for EVs is approaching a tech trifecta: proven vehicle technology that meets the needs of our network, increased investment in charging infrastructure, and a path towards price parity with traditional internal combustion engines (ICE) vehicles. While the sustainability benefits when operating an electric fleet are a top priority to FedEx, the operational efficiency of EVs is what makes it possible to deploy at scale. Being able to make that business case is key.

Q: Can you talk about the importance of EV charging infrastructure?

- Mattison: At FedEx Ground, EV charging infrastructure is our primary focus right now.  We need to show the service provider companies with which we contract, and which own and operate their own pickup and delivery vehicles, that there is a charging infrastructure available to support electric vehicles they acquire. We’ve found early success in quick, small-scale deployment of EV charging infrastructure projects (we currently consider this to be five or fewer chargers). We’ve found this approach helps meet the demand from early adopters while also allowing us to focus our long-term efforts on large-scale charging infrastructure projects.

Q: What challenges has FedEx experienced in scaling fleet electrification?

- Mattison: FedEx Ground has faced challenges like other companies transitioning to EVs and building out charging infrastructure, like supply chain disruptions, utility delays, and extensive permitting processes. We’ve found the best way to mitigate these challenges is to collaborate early with utility companies, state and local governments, and regulatory agencies.

For example, we’re working closely with utility companies to help ensure the grid supply can meet the EV charging infrastructure demand without negatively impacting market conditions in local communities. FedEx understands the need for everyone to benefit from cleaner forms of energy. That’s why we are working with energy suppliers to identify approaches that support fair, equitable and sustainable electric grids.

- Cawein: Yes, I would say the same from the FedEx Express perspective as well, Lonnie, plus the pace of vehicle availability. But above all, I think the key is to stay nimble: standardization of an approach is what facilitates scaled adoption but being agile during the execution phase is what ultimately helps ensure success.

Q: How is environmental justice a part of your decision making?

- Mattison: I’d say that environmental justice warrants attention across the whole electrification ecosystem—both how the electrification of vehicles in a particular area can positively impact a community, but also how clean energy can be made accessible to all.

- Cawein: And our colleagues across FedEx are looking at creative ways to do that. We talked earlier about the importance of energy generation to electrification: the FedEx Express facility in Washington, D.C. has a unique rooftop community solar installation from which some electricity bill credits are given to a local non-profit that supports people experiencing homelessness. So, not only is the electricity generated helping move D.C. towards renewables overall, we’re taking it one step further to benefit the community.

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One of the world’s leading international nonprofit organizations, Environmental Defense Fund creates pragmatic solutions to the most serious environmental problems. EDF collaborated with FedEx to introduce hybrid electric trucks into their fleet nearly 20 years ago, GM to eliminate emissions from its new passenger vehicles by 2035, and Iron Mountain to develop a fleet electrification plan – all with the goal of helping companies reduce their climate and air pollution footprints. Learn more at edf.org and connect with us on Twitter @EDFEnergyEX.