Supply chain evolution has always been exponential. In the late 19th century, sailing vessels gave way to steam-powered ships. Around the same time, horseback riders saw railroad tracks begin winding through the West and realized their time was coming to an end. 

Read also: Enhancing Supply Chain Efficiency: Strategic Advantages and Innovations

Humanity’s perception of distance and time changed in the blink of an eye. Since then, technology has continued evolving. A trip across the ocean has gone from a months-long journey on choppy waters to a few hours by plane. Transportation is accelerating significantly. Logistics companies don’t even let disruptions like natural disasters slow them down. 

Supply chains are evolving yet again. Electrification is the latest change sweeping shipping hubs worldwide, affecting the consumer market and the commercial logistics sector. Can diesel engines compete with battery power? 

Batteries Compete With Combustion Engines

Despite various policy-related hurdles, the energy transition is not slowing. In January 2025, a BloombergNEF forecast estimated that 33% of vehicles sold in the United States in 2030 would be electric, tripling the current market penetration rate. This projection is partly based on the estimated 26% growth the electric vehicle market experienced from 2023 to 2024, where battery-powered cars accounted for almost 25% of all new sales. 

Electrification is becoming more prominent in logistics for several reasons. EVs are far more sustainable than their fossil-fuel-powered counterparts because they produce no tailpipe emissions and can use carbon-neutral renewables to recharge. As regulators worldwide push private companies toward net zero, adoption increases. 

Widespread EV adoption is part of a broader push for electrification. The National Electrical Manufacturers Association predicts electric mobility consumption will rise by 9,000% through 2050. As demand surges, investments in generation and transmission technology increase. Much like the evolution from horseback to steam locomotives, infrastructure rapidly adapts. Diesel is a mature technology. Will it be left behind? 

How Diesel Engines Compare to Battery Power

Looking past the electrification trend to pure power, performance and efficiency will help logistics companies compare diesel engines and battery power. 

Diesel Engines

Diesel engines are powerful and reliable, perfect for long-haul trucking or moving freight. Their unique combustion process gives them a better fuel economy and a higher torque output than their gasoline counterparts. Since they are considerably more efficient, they have been the industry standard for decades.

Since the diesel engine is a mature technology, it is widely available and relatively cheap, cementing its market dominance. One full fuel tank can get a vehicle hundreds of miles. Moreover, technicians know their way around a combustion engine, so there is no need to upskill or upgrade maintenance technology stacks. 

Battery Power

On top of producing no tailpipe emissions, EVs can use solar panels to charge virtually anywhere for free without adversely affecting the environment. Even if drivers use chargers, paying for power by the kilowatt hour is generally cheaper than refueling with diesel or gasoline. Regulators in the U.S. and the European Union are pushing to ban combustion engines in 2035. 

Challenges Facing Widespread EV Adoption

Although electrification seems like the next step for supply chain professionals, it may not be. Charging spots are not nearly as accessible as gas stations, even if they are cheaper. Even if policymakers decide to build more, surging electricity demand may be an obstacle. 

EVs are not the only things that must be plugged into the grid. Resource-hungry data centers and smart cities demand a tremendous amount of power. Unlike steamships and steam locomotives, they share fixed infrastructure, increasing the potential for scarcity. Even if city managers invest in renewables, their generation capacity will be capped. 

Businesses could theoretically use mobile solar panels to compensate, but parking every few hours to recharge is the opposite of efficiency. Although charging infrastructure and battery technology have made strides in recent years, gas stations and cans are still faster and more reliable backup options for long-haul trucking. 

Even if EVs outperform combustion engines in some respects, fleet managers may be unable to source these vehicles. The Trump administration’s 25% tariffs on auto imports took effect in the first week of April 2025. The move prompted automakers to stop shipping cars to the U.S. and shut down manufacturing facilities in adjacent regions. 

Domestic production is not as obvious of a solution as it may seem because it requires investing hundreds of millions of dollars into new automotive factories. Companies will not take that risk until they are certain the tariffs are here to stay. 

Could EVs Overtake Combustion Engines?

Battery-powered vehicles are an impressive technological feat. They may revolutionize the consumer market but aren’t built for the commercial sector. Container ships, freight trains, tractor trailers and cargo planes almost exclusively rely on diesel power. In the transportation sector, diesel consumption was 2.78 million barrels per day in 2004 and 2.85 million barrels per day in 2024. It will likely continue to remain linear. 

The best path forward may be hybrid technology, combining combustion engines with battery systems to improve sustainability without sacrificing performance. While diesel hybrids exist, they are relatively uncommon. They are more suited to heavy-duty applications. However, case studies show they are effective. 

The U.S National Renewable Energy Laboratory has helped design and engineer new generations of medium- and heavy-duty hybrid trucks. At a minimum, they achieve a 50% reduction in fuel consumption. Logistics companies should consider retrofitting fleets for electrification. EVs are not going anywhere, but neither are fossil fuels. 

The Future of Diesel Power in Supply Chains

Today, diesel still dominates transportation. Some policymakers and business leaders are trying to convince stakeholders that battery power is better. When steamships and freight trains entered the picture, people didn’t need to be convinced. The new technology simply outperformed the old in every meaningful way, pushing it out naturally. 

EVs aren’t as disruptive as people think. That isn’t to say electric isn’t better in some ways — it is. However, supply chain professionals won’t phase out their combustion engines any time soon unless recharging time and travel distance substantially improve.

Although people assume the dawn of EVs is a sign to sunset combustion engines, that couldn’t be further from reality. Industry professionals should think of it less like the steam locomotive replacing horse-drawn carriages and more like choosing between the train or the subway. Both have practical applications in specific settings — they won’t replace each other.