Rising diesel costs push Nordic freight operators toward electric fleets

Soaring diesel prices are accelerating the shift to electric heavy transport across Finland, with major logistics firms investing millions in terminal charging infrastructure, Yle reports.

The transition is driven by three key factors, according to Otto Lahti, a senior expert at the Finnish Transport and Communications Agency (Traficom): improved electric vehicle models, expanding charging networks, and the widening price gap between diesel and electricity. “Finland has relatively cheap electricity by European standards and a robust grid,” Lahti said, noting that while electric trucks must meet technical and cost requirements, competitive energy prices strengthen their case.

Logistics operators confirm the shift. Ari Nieminen, head of trunk transport and terminals at Posti, said diesel, gas, and electric options now have comparable lifecycle costs. “Fuel price fluctuations no longer significantly impact us,” he added. Kesko’s domestic transport production manager, Jarmo Nikupeteri, called electricity a “highly competitive” alternative, though he noted that leasing, labor, and energy costs remain the largest expenses regardless of power source.

Charging access is critical. Kesko has invested nearly €10 million in installing charging stations at all its grocery distribution terminals, including its northernmost site in Oulu. Posti has also expanded terminal charging capacity, with Ari Nieminen describing the outlay as substantial. NK Logistics CEO Ari Kittilä said private charging infrastructure lowers costs compared to public stations and can incentivize fleet electrification, as industrial and commercial operators often offer competitive in-house electricity rates.

Electric adoption is advancing fastest in urban delivery. Heikki Karsimus, CEO of Electric Traffic Finland, said per-kilometer costs for electric trucks are now significantly lower than diesel. “Global events have driven diesel prices up sharply, while electricity remains stable—boosting the incentive to switch,” he said. Kittilä added that predictable electricity pricing, despite higher upfront capital costs, simplifies budgeting compared to volatile diesel.

Environmental targets are also pushing change. Posti has cut its fleet emissions by nearly 60% since 2020, driven partly by client demand. “Major cities and corporate customers have strict emissions goals, and logistics is a key lever for reducing supply chain impacts,” said Anna Heino, Posti’s climate and nature director. Kesko aims to reduce its 2024-level emissions by nearly 60% through electrification, targeting 200 heavy electric trucks by 2030—up from 47 today and an expected 70 by year-end.

Posti currently operates about 800 electric delivery vans, 40 medium-duty electric trucks, and three heavy electric combinations. The firm’s early electrification efforts were motivated by emissions targets, but rising diesel costs have since reinforced the business case.