FedEx has ordered 1,000 electric vans from Chanje Energy, to be delivered over the next two years. The vehicles, ordered through Ryder System, will go into operation throughout California in FedEx’s FedEx Express fleet, working in commercial and residential pick-up and delivery.
FedEx (NYSE: FDX) will purchase 100 of the vehicles and lease the remainder from Ryder. Back in June, Ryder reserved 500 Chanje vehicles, with the order to filled as lease agreements for the vehicle were finalized.
Ryder is the exclusive sales and maintenance channel for the Chanje vehicle.
“FedEx continually seeks new ways to maximize operational efficiency, minimize impacts and find innovative solutions through the company’s Reduce, Replace, Revolutionize approach to sustainability,” said Mitch Jackson, FedEx chief sustainability officer. “Our investment in these vehicles is part of our commitment to that approach of serving our customers and connecting the world responsibly and resourcefully.”
The Chanje all-electric large delivery style van is equipped to haul up to 6,000 pounds with up to 675 cubic feet of cargo space while producing zero emissions. It has a 150-mile range on a single charge.
Chanje Energy is a subsidiary of FDG, a Hangzhou, China-based vehicle manufacturer. FedEx believes each vehicle will save 2,000 gallons of fuel per year and reduce emissions by 20 tons per vehicle.
“With our focus on innovation and technology, combined with our entry into the EV market more than a year ago, we’ve made it easy for customers such as FedEx to adopt sustainable, advanced vehicle technologies,” said Dennis Cooke, president - Global Fleet Management Solutions for Ryder. “We continue to see broadening interest in EVs from businesses of various sizes and industries looking to outsource – especially in the final mile delivery space where a smaller, more environmentally-friendly vehicle is required.”
The leasing of the vehicles will occur through Ryder’s ChoiceLease fleet program and includes all maintenance for the vehicle at one of Ryder’s more than 800 facilities across North America.
Each van will be equipped with shelving and current specs that match FedEx Express driver needs.
FedEx started using all-electric vehicles in its fleet in 2009. The company has set a goal of increasing FedEx Express vehicle fuel efficiency 50% from a 2005 baseline by 2025. As of this year, it has achieved a 37.9% improvement, it said. In 2017, fuel efficiency improved 2.9%, a 219,714 metric ton reduction of CO2 emissions. The company attributed this to fleet upgrades, new technologies, increased use of alternative fuels and improved routing and automation. It estimated these efforts saved the company $51 million in fuel in 2017.
At the conclusion of 2017, FedEx operated more than 2,860 alternative-fuel vehicles, including electric and hybrid-electric, in its Express and Freight fleets.