In a record-setting commercial truck deal, international shipping giant FedEx has placed an order for 2,000 all-electric box trucks from American startup Harbinger in a deal that’s reportedly worth more than $300 million – but the ROI could be much higher.
FedEx is making serious moves to fully electrify its operating fleet by 2040, and this latest Harbinger deal is believed to be one of the largest binding orders for electric medium or heavy-duty trucks in history. It’s certainly Harbinger’s largest order, at least!
“FedEx is demonstrating that the business case for incorporating electric vehicles into real-world fleet operations at scale makes sense,” said John Harris, Co-Founder and CEO, Harbinger. “Our previous work together gave FedEx firsthand experience with the performance and economic advantages Harbinger vehicles can deliver. We are proud that a global leader like FedEx is turning its sustainability goals into action by choosing Harbinger to help expand its electric fleet.”
Let’s do the math
Harbinger estimates that each of the electric Class 5 and 6 medium-duty box trucks delivered will reduce FedEx’ fuel costs by around $20,000 annually compared with the conventional diesel-powered vehicle they replace. Additionally, Harbinger says its vehicles are designed for a functional service life of 20 years.
2,000 trucks x $20,000 in fuel savings per year x 20 years. That works out to $800 million in total savings, for a whopping ~166% ROI.
“Electrifying a fleet at this scale requires vehicles that can perform the work our robust operations demand while also delivering meaningful economic benefits,” said Paul Melander, Senior Vice President Safety & Transportation, FedEx and member of Harbinger’s Board of Directors. “Expanding our deployment of Harbinger vehicles gives us an opportunity to continue making progress toward our fleet electrification goals while reducing fuel and operating costs.”
Saving money is great, but the much more important issue for you and me is that the move to Harbinger electric trucks will help FedEx avoid more than 1.7 million tons of CO2 emissions over their projected operating lives – and that is a real win.
We had a chance to sit down with Harbinger CEO John Harris in the wake of their big EREV reveal at Work Truck Week earlier this year in Indiana. I’ve included a Spotify link to that HEP-isode is included, below, but you can check it out on Apple Podcasts, Amazon Music, or wherever you find podcasts.
The Cool Truck Advantage
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