12:21 PM EDT, 04/25/2024 (MT Newswires) -- FedEx ( FDX ) and UPS (UPS) want to convert to zero-emission delivery fleets, but their efforts are being slowed by rising costs, supply issues and uncertain prospects for some of the companies building electric vehicles, Reuters reported Thursday.

The parcel delivery companies already are driving more than 1,000 electric vans, but that represents only a fraction of their respective fleets. FedEx ( FDX ) and UPS executives told Reuters production capacity currently lags demand, with availability of EVs hampered by battery shortages, in particular.

Federal and state governments also have been phasing out many of the incentives that helped lower the companies' costs buying EVs.

UPS told Reuters it remains committed to its overall carbon emissions goal and is supplementing its EV fleet with 13,000 vans running on renewable natural gas. FedEx ( FDX ) said it also was looking for suitable alternatives if there are not enough electric vans to match its needs.

The companies did not immediately respond to messages from MT Newswires seeking comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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