THE SURVEY of more than 1,000 UK supply chain, transport and logistics decision makers found that 63% say rising fuel costs are increasing their interest in alternative fuel vehicles. However, although 87% see emissions reduction as a key priority, 76% say demonstrating cost savings or operational efficiencies is essential to unlock investment in low-emission transport.

High upfront vehicle costs, uncertainty over future technology and infrastructure concerns are delaying decisions, so many operators are focusing on efficiency measures they can introduce now. Some 43% are reducing part-loads, 41% are cutting empty running, 41% are exploring fleet sharing and 39% are optimising routes, all up on GXO’s 2024 survey.

No single technology is expected to replace diesel. By 2028, 70% of logistics leaders expect gas-powered fleets to be viable, affordable and operationally realistic, compared with 68% for electric HGVs, 64% for biofuels and 62% for hydrogen. Only 25% have started investment planning for charging or refuelling infrastructure, and fewer than a third (30%) have begun procurement planning around energy supply.

Carl Hanson, managing director for transport at GXO UK & Ireland, said: “Decarbonisation and commercial performance cannot be treated as competing priorities. Better data, stronger visibility and more connected transport networks can reduce waste, cost and emissions today.”

GXO takes part in the UK’s Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, deploying electric HGVs alongside charging infrastructure, and offers its EyeQ digital transport platform to cut empty running.

Earlier GXO research found that 89% of UK businesses expect transport running costs to rise over the next 12 months, while only 35% have a clear strategy and timeline for adopting alternative fuel vehicles. The survey was carried out by Censuswide between 30 January and 18 February 2026.