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FedEx delivers bigger fuel efficiency targets

March 20, 2013

FedEx delivers bigger fuel efficiency targets

In 2008, FedEx set a target of increasing the fuel efficiency of its global vehicle fleet by 20 percent by 2020 from its 2005 levels. Eight years on, it’s already improved by 22 percent. Now, it’s raising the goal to improve fuel efficiency to 30 percent by 2020, both for vehicles and aircraft.

FedEx says it’s seen the biggest improvements in fuel efficiency from small but smart changes in how it operates and builds vehicles. Matching the right vehicle to each route, for example, is expected to cut fuel use by 20 million gallons this year. Another simple strategy is to make sure vehicles have “right-sized” engines. Outfitting a vehicle with the smallest engine that can do the job makes them 70 to 100 percent more fuel efficient than the truck it replaces. So far, about 10,000 of such vehicles are in service ? more than a third of those delivering packages in the U.S. The company’s other strategies include moving toward composite bodies to lower a vehicle’s weight, converting older diesel engines to more efficient versions, and the use of hybrids and electric vehicles.

“FedEx Express follows a three-tiered strategy to improve the fuel efficiency of its fleet: Reduce, Replace and Revolutionize,” says Dennis Beal, vice president of global vehicles at FedEx Express, in a statement. “This holistic approach to fleet management allows us to develop vehicle technologies for the future while maximizing the conventional vehicles we operate today.”

Read more at GreenBiz.

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