With global trade facing uncertainty due to fluctuating tariffs and economic instability, U.S. ports are increasingly turning to propane as a reliable and economical energy source to maintain operational efficiency. Propane’s domestic production base shields it from the volatility of international oil markets, offering more predictable pricing compared to diesel and gasoline, which are susceptible to geopolitical tensions and policy shifts.
Fuel expenses represent a major variable cost in port logistics. Propane typically costs up to 50% less per gallon than diesel, providing significant savings. For example, West Basin Container Terminal (WBCT) at the Port of Los Angeles reduced its annual fuel expenditure from $1,519,217 to $1,150,922 after switching from diesel to propane—a nearly 25% reduction. These savings can be redirected into infrastructure improvements or workforce development.
Initial equipment investment is another advantage. Near-zero emission propane-powered terminal tractors cost approximately $150,000 each, substantially less than electric models, which average $320,000 per unit, according to a 2021 assessment of terminals in San Pedro Bay.
Propane also reduces infrastructure and maintenance burdens. Refueling stations require minimal upfront investment and can be scaled easily, allowing large-scale storage of over 100,000 gallons on-site without degradation over time. Unlike electric systems, propane does not necessitate costly grid upgrades or charging stations. Additionally, propane engines do not require complex aftertreatment systems like diesel particulate filters or diesel exhaust fluid, lowering long-term maintenance costs and minimizing equipment downtime.
Operational continuity is crucial during peak trade periods. In July 2025, the Port of Los Angeles recorded its busiest month ever. Propane-powered machinery maintains consistent performance throughout an eight-hour shift without power loss, and fuel cylinders can be swapped in minutes. In contrast, electric batteries often require recharging mid-shift, disrupting workflow. This reliability enhances productivity, labor utilization, and throughput.
Energy resilience is another key benefit. With rising risks of grid instability due to aging infrastructure and extreme weather, propane offers an off-grid alternative. Onsite storage enables backup power generation, microgrids, and shore power systems to remain functional during outages. Even electric fleets can leverage propane-powered charging solutions to maintain operations when the grid fails.
As trade volumes continue to fluctuate, propane stands out as a strategic energy solution that supports cost control, operational efficiency, and resilience against disruptions.
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Propane’s Economic Edge for Ports During Trade Uncertainty
Click HERE to sign up for the October 16, 2025 webinar Power & Performance at the Port: See How Propane Moves Maritime Operations Forward n nTrade has been a rollercoaster recently. Between the unpredictability of tariffs and uncertain economic outlooks, ports have faced big swings in trade volume as well as pressure to do more with less. Operational efficiency and cost control are critical, which is why propane continues to emerge as a cost-effective, dependable energy solution that offers significant economic advantages for port terminal operators looking to stay ahead during uncertain times. n nLower and More Predictable Fuel Costs n nOne of the largest variable costs in port operations is fuel. Diesel and gasoline prices can be heavily impacted by the global oil market, which can be affected by several factors like international conflicts, policy changes, tariffs, and more. Propane, on the other hand, is predominantly produced domestically here in the United States, so it benefits from a more stable supply chain and fewer price fluctuations. Compared to diesel and gasoline, propane helps protect ports from sharp price spikes that can quickly consume their annual fuel budget for the year. Propane suppliers can also offer port operators mutually beneficial long-term fuel contracts, improving budget predictability and planning. And on a per-gallon basis, propane usually beats the price of diesel, sometimes by as much as 50 percent. n nWest Basin Container Terminal (WBCT) at the Port of Los Angeles has been running propane terminal tractors for over 20 years, and after switching from diesel to propane, the terminal went from $1,519.217 in annual diesel costs to $1,150,922 in annual propane costs. That’s around a 25 percent savings that the port could reinvest in its operations. n nThe upfront investment cost in propane equipment also tends to be lower than new electric equipment. Based on a 2021 assessment of the San Pedro Bay terminals at the Ports of Los Angeles and Long Beach, the purchase price for near-zero emission propane terminal tractors is significantly lower than electric tractors at approximately $150,000 in comparison with electric’s $320,000 per unit. n nReduced Infrastructure and Maintenance Costs n nPropane refueling infrastructure also tends to cost much less than electric, which may require recharging stations and grid upgrades. Propane infrastructure is cost effective, scalable, and quick to deploy. Not only can large operations store over 100,000 gallons of propane on-site, but refueling stations can be installed with a relatively low upfront investment and scaled to meet port-specific needs. Propane also doesn’t degrade over time like gasoline and diesel, so large reserves can be stored for long periods. n nPropane engines also generally require less maintenance than diesel engines. For example, there’s no need for expensive aftertreatment systems such as diesel exhaust fluid or diesel particulate filters. This further reduces long-term maintenance costs on parts and labor, as well as less vehicle maintenance downtime. n nImproved Equipment Uptime and Productivity n nWith a volatile trade environment, there have been periods of record volume flowing through ports. For example, July 2025 was the busiest month on record at the Port of Los Angeles. Getting ships unloaded quickly and efficiently is critical, and equipment downtime is a hidden cost that can disrupt schedules and erode profit margins. n nPropane-powered equipment can perform all day, carrying heavy loads without loss of power or speed. Today’s propane terminal tractors are currently the only near-zero emission fuel technology platform capable of meeting marine terminal operators’ endurance needs — traveling consistent speeds and distances no matter the cargo weight. n nMeanwhile, a single propane cylinder can power a forklift for an entire eight-hour shift without losing power or speed. Cylinders can also be swapped out in a matter of minutes. On the contrary, most electric batteries cannot last for a whole shift, requiring operators to stop and recharge or swap out a battery. This higher uptime and faster turnaround for propane material handling equipment means more efficient operations, better use of labor resources, and increased output. n nEnergy Security and Operational Resilience n nAnother major factor with the potential to disrupt operations is electrical grid instability. And increased power demand, aging infrastructure, and severe weather are making power outages more common by the day. The risk of electric grid failures is particularly concerning for ports located in large population centers where electricity demand is high and in regions with higher risk of natural disasters. According to a recent report from the Department of Energy, blackouts in the U.S. could increase by 100 times by 2030 if nationwide electrical infrastructure isn’t expanded and upgraded. For ports, grid outages can disrupt communications, IT systems, and other essential services, in addition to preventing electric terminal tractors and forklifts from recharging. n nPropane provides ports with an off-grid solution that reduces dependency on the grid. With onsite propane storage and backup propane-powered generators, microgrids, and shore power, ports can keep critical electric systems running even when the grid goes down. Likewise, while propane-powered equipment is completely protected from grid disruptions, even electric forklift and terminal tractor fleets can benefit from propane-powered EV charging capabilities. n nWeathering the Waves of Global Trade n nAs economic uncertainties and tariff whiplash continue to affect the volume of goods coming into U.S. ports, controlling costs and maximizing efficiency are critical for maintaining port operations. Propane power is one way in which ports can achieve lower and more predictable fuel costs, affordable infrastructure, minimal maintenance downtime, and resilience during power disruptions. n nWhether ports have been utilizing propane equipment for decades or are looking to upgrade their operation, propane is a strategic asset that can help ports weather whatever global trade has in store.