Germany’s parcel industry is making progress on its electric course, which aims to reduce CO2 emissions. When asked, market leader DHL said it now has more than 25,000 electrically powered vans in its postal division

DHL with a big lead over the competition

DHL’s competitors also use more electric vehicles than before, but their gap to the industry leader remains large. This is also because Deutsche Post DHL got started early and manufactured its own electric vehicles under the Streetscooter brand for years. But the Bonn headquarters never really warmed up to the Aachen subsidiary – vehicle production was very far removed from DHL’s core business, logistics.

Almost two years ago, the headquarters pulled the ripcord and sold street scooters. The successor company has not yet been a success story; in September it filed for insolvency. DHL continued to purchase street scooters from her, but the vehicle manufacturer had delivery problems and provided DHL with fewer electric vehicles than the logistics company wanted. Therefore, the people of Bonn gradually switched over and also ordered electric vehicles from other manufacturers.

Competitors are gradually making progress

For a long time, DHL was so far ahead when it came to electrification that the competition was barely visible in the rearview mirror. This was also a problem for the competitors with their combustion engine dominance because it allowed the Bonn Post Group to develop an image as a relatively climate-friendly and sustainable parcel supplier. This should help DHL score points with companies and consumers.

Meanwhile, competitors are also picking up speed when it comes to electrifying the last mile. GLS has 650 electric vehicles on Germany’s roads, three times as many as two years ago. By the end of the year there should be 900.

DPD also wants to increase the electric share, but the company does not give a number. The proportion of electric vehicles in DPD’s total fleet is in the single-digit percentage range. At GLS it’s ten percent. At the beginning of 2021, Hermes only had 190 electric vans in its fleet, but according to the company, there are now 720. A percentage is not given.

The pace is expected to pick up in the coming years. Hermes reports that the company wants to deliver exclusively electrically in 80 city center areas by the end of 2025 and therefore without local CO2 emissions. Like other companies, Hermes not only relies on electric vans, but also on e-cargo bikes.

DHL has reduced investments

The postal company DHL actually wanted to be further ahead. But the company has recently reduced its investments in new building technology and modern vehicles. On the one hand, this was because DHL failed in its application to the Federal Network Agency for higher letter postage and therefore cannot plan for additional income. In addition, a reform of the outdated postal law is a long time coming – in view of this regulatory uncertainty, management is exercising restraint. “Even with the other investments – vehicles and so on – we cannot continue to invest as we would like,” said DHL boss Tobias Meyer.

Greenhouse gas emissions on long-haul routes remain high

While the share of electric vehicles in the last mile is increasing across the industry, progress in the other sections of parcel transport is still clear. The transport of shipments by rail only plays a minor role and on the highways the parcels are mostly transported in trucks with diesel engines. This is also because the supply of suitable heavy trucks with other drive types is still limited. “There is simply still a lack of reliable and scalable alternatives in long-distance transport,” says a GLS spokesman. The company has four LNG trucks and one hydrogen truck in its fleet for long-haul routes.

For DHL, the post office is in the business area

And what do environmentalists say about the electric plus in the parcel industry? There isn’t too much enthusiasm. They find it positive that less CO2 is released than with combustion vans. However, they view the increasing parcel volumes and thus the increased transport volume critically, as these are a symptom of the throwaway society. Greenpeace advocates for more sustainable consumption by ordering fewer products.