Faced with rising diesel costs and strained power grids, high-throughput hubs are turning to propane to manage market shocks without sacrificing operational reliability.
As the global supply chain gears up for its busiest season, high-throughput warehouses, distribution centers, and port terminals face intense pressure to cut costs per container while maintaining steady operations. In 2026, global energy volatility has exposed financial vulnerabilities for logistics fleets that rely heavily on imported oil and diesel. At the same time, facilities looking to fully electrify their operations find themselves bottlenecked by rising infrastructure costs, multi-year interconnection delays, and strained power grids. For supply chain operators seeking to diversify energy sources without sacrificing uptime, propane has emerged as a proven solution to manage market shocks, maintain reliable operations, and protect profit margins.
Propane’s Total Cost Advantage: Cutting Costs, Gaining Control
Propane’s ultimate pricing advantage stems from its domestic abundance. Because the United States produces far more propane than it consumes and has been a net exporter since 2011, its supply is insulated from the ongoing volatility in global oil prices. This market stability directly translates into lower total cost of ownership for material handling operations.
Beyond predictable operating expenses, equipment reliability is non-negotiable for high-duty logistics hubs that operate 24/7. Battery-powered equipment can require hours of charging downtime between shifts, risk power and performance drops as the battery drains, and leave facilities vulnerable to grid brownouts. In contrast, propane units maintain consistent power throughout operation and can be refueled in about 10 minutes, ensuring seamless supply chain movement without requiring extra fleet units to cover charging cycles.
Real-World ROI: How WBCT Saves $1 Million Annually
The West Basin Container Terminal (WBCT) at the Port of Los Angeles illustrates this operational edge. In an effort to lower emissions and cost, WBCT became the first container terminal in the U.S. to power its entire yard tractor fleet with propane. Operating a massive fleet of 80 ultra-low NOx propane terminal tractors and using over 575,000 gallons of fuel annually, the terminal saves an estimated $1 million per year. Recent data from WBCT further validates this, with the terminal paying less than half the price per gallon for propane compared to diesel.
“Propane has delivered on multiple fronts,” said Matt Sentell, Vice President of Operations at WBCT. “The equipment matches diesel performance, refuels quickly, and avoids the grid challenges we’d face with electric.”
Transitioning to propane also achieves remarkable environmental benchmarks. By replacing diesel equipment, WBCT has realized a 99.9% decrease in tailpipe NOx emissions and a 75% reduction in total hydrocarbons.
“Propane provides a rare operational win-win for high-throughput ports and warehouses,” explains Jim Bunsey, senior manager of business development for material handling at the Propane Education & Research Council (PERC). “It delivers the continuous reliability that supply chains require and drastically improves air quality for workers, while adding a million dollars in fuel savings directly to the bottom line.”
As distribution centers navigate the peak shipping season, diversifying with propane provides a critical buffer against market volatility and strained electric grids. By adopting this domestically secure energy source, logistics facilities can lower their emissions and protect their bottom line, ensuring cargo continues to move safely, efficiently, and affordably. Discover how propane can help your facility lower costs, improve resilience, and keep operations moving at propane.com/ports.