Port operations are increasingly looking to reduce their carbon emissions. Switching to battery-electric technology for cargo handling equipment can help—and developments are underway.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Battery-electric vehicle technology is front and center in the race to create greener supply chains, with many companies investigating ways to reduce their reliance on diesel-powered trucks and material handling equipment in favor of lower- or zero-emission options.
Port operations are no exception, but efforts to electrify the heavy-duty equipment used in those environments are still in the early stages, with some industry-watchers saying the tipping point for adopting battery-electric port equipment is still years away. That’s largely due to the high cost of electrified container handling equipment (CHE), which is used to load and unload containers onto and off of ships—examples include large vehicles called straddle carriers, terminal tractors, and reach stackers. The total cost of ownership for battery-electric versions of that equipment is roughly 1.3 times higher than that of diesel-powered CHE, according to data from Netherlands-based port operating company APM Terminals and Dubai-based cargo logistics company DP World. Until those costs come down, battery-electric CHE is likely to remain a small portion of the equipment operating at ports around the world. In fact, battery-electric equipment is just beginning to be deployed, according to the APM and DP World data, which was published in a white paper last October.
But research and testing are underway. Forklift and material handling equipment manufacturer Hyster is one company at the forefront of those efforts. Hyster is involved in pilot programs with its own zero-emission equipment at ports around the world, including a partnership to provide APM Terminals with 10 battery-electric terminal tractors for APM’s location at the Port of Mobile, Alabama. The manufacturer is also working with the Port of Valencia, Spain, to use Hyster’s hydrogen fuel cell (HFC) reach stacker—another alternative to diesel-powered equipment—for port operations. The Valencia project is part of Europe’s H2Ports initiative, a European Union-funded project that aims to implement fuel cells and other zero-emission technologies at ports.
We asked Herman Klaus, Hyster’s director of application solutions, to weigh in on the trend toward battery-electric port equipment and discuss Hyster’s efforts to help create more sustainable port operations. Here are some excerpts from our conversation.
DC Velocity: Demand for zero-emission material handling equipment continues to rise. How is the trend evolving at ports? How much demand are you seeing for technologies that replace traditional diesel-powered equipment?
Herman Klaus: There is tremendous interest in electric machines in the market as the decarbonization targets in our industry are widely set. We see a lot of interest in our zero-emission portfolio, stretching from our battery-electric products [a wide range of forklifts, including port equipment] as well as our hydrogen fuel cell-powered container handling equipment. We have been able to deploy battery-electric [heavy-duty] forklifts in the field, where several customers had the ability to trial the equipment. Currently, we have two container handlers in operation with a hydrogen fuel cell-electric drive line. Apart from bringing interested customers to these sites, we are also heavily engaging with customers around the world by sharing our technology roadmap and discussing collaboration possibilities.
DCV: What are the main considerations when deciding whether or not to implement electric port equipment?
Klaus: When exploring electric options, it’s important to get a complete operational profile to guide decision-making. The right electrification choice will always depend on the particular needs of the operation, such as the demands and intensity of the operation. There will also be factors dictated by the charging/refueling infrastructure and working patterns. For instance, is opportunity charging possible? … There are also geographical considerations—certain energy options [for example, electricity and hydrogen] are more affordable in some countries than others.
Cost is another factor. The price of solutions will vary based on the equipment type, power source, charging or refueling infrastructure, and other factors. There is currently a significant cost differential between container handling equipment fueled with diesel and alternatives powered by electricity, but as more electric equipment enters the market, economies of scale will help to drive parity. It’s also important to remember that the initial acquisition price is only one piece of the total cost of ownership, and electric equipment can help reduce certain operating and maintenance expenses. For example, electric drivetrains have fewer components and less complexity than ICE [internal combustion engine equipment], which can help reduce the downtime and cost associated with maintenance.
It’s also worth noting the maintenance element, as electric container handlers are categorized as high-voltage equipment, and there are important safety standards operations must understand and comply with to prevent electrical danger or injury.
DCV: How do you handle the charging process for electric vehicles in these environments? How is it different from charging done inside warehouses and distribution centers?
Klaus: Major considerations on this subject include the frequency with which equipment must be refueled/recharged and infrastructure requirements. These are similar questions to what operations with lower-capacity equipment used in distribution centers often consider. For example, warehouses and DCs must schedule charging to fit their productivity requirements and must also consider onsite charging and the ability of the local grid to provide sufficient energy.
First, frequency: Zero-emission options are being designed to provide enough capacity to keep operations moving and avoid the need to stop in the middle of a shift to recharge or, in the case of hydrogen fuel cells (HFC), refuel. But the required time and frequency of recharging or refueling are very important considerations. For large HFC-powered equipment, a rough ballpark figure is that it can take about 15 minutes to fill an empty tank, enough for up to eight to 10 hours of continuous runtime. A lithium-ion battery-powered top pick [a type of cargo handler] capable of opportunity charging, for instance, could have enough power onboard to complete a full eight-hour shift before needing to be charged.
As [for] the local electric grid handling the energy draw of port equipment: The answer depends on the grid stability and capacity in the local area and the fleet size. Charging heavy-duty electric equipment like this does demand a significant energy draw, so it is important to work with a partner who can help understand power requirements, evaluate charging strategies such as staggered or overnight charging when there is a lower burden on the grid, and speak with your local utility provider. It’s also important to note that not all electric equipment is dependent on electricity from the grid. HFC-powered equipment can be a strong option where the local grid is not reliable.
In terms of what operations need onsite in order to charge or fuel equipment: Apart from the container handling equipment, operations will need a charger for battery-electric equipment or hydrogen fueling stations and possibly storage—depending on your hydrogen sourcing strategy—for HFC-powered equipment.
DCV: Can you tell us a bit more about the recent deployments of Hyster’s battery-electric and hydrogen fuel cell port equipment?
Klaus: [Our] hydrogen fuel cell-powered reach stacker [a vehicle that can move containers around ports] at the Port of Valencia has successfully transitioned to real-world operation, marking the official launch of the piloting phase for the [European Union’s] H2Ports project.
It’s important to acknowledge that integrating any new technology requires a period of adjustment. Compared to a standard diesel truck, this initial startup phase requires added input and effort for both the reach stacker itself and the supporting hydrogen infrastructure.
Maintaining operational flexibility is also crucial during this pilot. We may encounter unforeseen challenges, such as temporary fluctuations in hydrogen supply or requirements for specialized parts. However, we’re committed to working collaboratively to address any such issues in a timely and professional manner.
The core objective of this project is to demonstrate the viability of hydrogen fuel cell technology in real-world port operations. Over a minimum two-year period, the reach stacker will be put through its paces, accumulating more than 5,000 operating hours. This data will be instrumental in proving that fuel cell reach stackers are a realistic and reliable option for the future of sustainable port operations.
We also have a special test agreement with APM Terminals in Mobile, Alabama, to deliver … 10 battery-electric terminal tractors [vehicles that move containers within a cargo yard or similar facility]. Hyster is onsite to provide support for these machines. We have a dedicated support team, solely to support our zero-emission port equipment projects around the globe.
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.