A Practical, Scalable Model to Lower-Carbon Freight with Estes and Shell

For Estes, addressing emissions from freight transportation is not about finding one solution. It is about testing different options and learning where each one works best.

As North America’s largest privately held freight transportation company, Estes operates more than 300 terminals and has nearly a century of experience moving less than truckload freight. The company takes GHG emissions reductions seriously and uses an approach it calls “decarbonization through diversification”—testing different methods to understand where each can make an impact.

The opportunity: Put renewable diesel to the test

Estes already understood the potential of renewable diesel. Customer interest was growing, and the fuel supported the carrier’s own efforts to reduce emissions from its fleet. But renewable diesel supply and customer freight do not always line up on the same routes or shipments.

Estes also recognized that some customers want greater visibility into the renewable diesel being used, including feedstock and environmental attribute information. Renewable diesel is made from different fats, oils, and greases, but processed to be chemically similar to fossil diesel. That means it can go directly into existing diesel equipment without changing day-to-day operations.

The bigger question was when it would make sense to put renewable diesel to work at scale. “Renewable diesel was an easy one for us to try because we didn’t have to invest in new equipment. We just needed the right opportunity to put it to the test,” explained Sara Graf, vice president, sustainability, culture, and communications at Estes.

An opportunity emerged when Estes, C.H. Robinson, and Shell recognized they could connect customer demand, fuel supply, and carrier operations. A market-based mechanism (MBM) provided a consistent way to connect the renewable diesel Estes used—and its environmental attribute information—with participating customers’ freight.

The solution: Connect demand, fuel, and freight

Using the Smart Freight Centre’s market-based measures framework, the team could support lower-carbon transportation activity across the broader logistics network. The framework tracks renewable diesel use and the associated environmental attribute information, allowing them to be connected with participating freight even when the fuel is not used for a specific shipment.

“Delivering greater transparency in low-carbon transportation requires collaboration across the value chain. Together, Estes, Shell, and C.H. Robinson brought complementary expertise spanning fleet operations, freight coordination, customer connectivity, and renewable diesel with its associated environmental attribute information,” explained Tonya Donaldson, general manager marketing and sustainability at Shell Low Carbon Solutions. “By connecting verified fuel use to participating freight shipments, this registry-enabled approach gives customers a clearer line of sight between renewable fuel deployment and the freight they move.”

With the framework in place, the teams agreed on the amount of renewable diesel Estes would use and a deadline for consuming it. They chose Houston as the main fueling location, with Dallas–Fort Worth service centers added as needed, and Estes completed the planned fuel use well ahead of the deadline.

Estes then tested whether renewable diesel could support everyday operations with a just-in-time purchasing option that gave its fleet team greater flexibility. The team used the fuel in existing tractors while monitoring storage and delivery. “Running with renewable diesel and not seeing any change in the way that our tractors operated provided additional confidence within our operations,” shared Graf.

Estes also needed to know the fuel would arrive reliably enough to support a large fleet. “We depend on fuel arriving on a reliable schedule. This gave us a chance to test Shell’s supply in a real operating environment, and they delivered the consistent service our fleet needs,” shared Graf.

The results: Build confidence through real-world use

During the initial three-month pilot, Estes deployed renewable diesel at scale across its Texas operations. The program showed that the fuel could be integrated into existing operations without disrupting day-to-day service, while supporting Estes' efforts to lower the lifecycle GHG emissions associated with its fleet fuel.

The experience gave Estes three practical takeaways—and demonstrated how a market-based mechanism can connect verified renewable diesel use and environmental attribute information with shipper demand:

• No equipment changes: Renewable diesel ran in existing tractors without changing how they operated.
• Reliable supply: Fuel storage and scheduled deliveries supported normal operations.
• Business continuity: Reliable fuel supply and drop-in use allowed Estes to maintain normal fleet operations throughout the pilot.
• Verified information: The market-based mechanism gave operations and procurement teams with visibility into the environmental attribute information associated with the fuel, helping guide future decisions.

“For us, adding renewable diesel was about learning by doing, and we came away with experience we can build on,” said Graf. “The combined innovative spirit of Estes, Shell, and C.H. Robinson made that possible. We each brought something different to the table and turned an idea into something that works in practice.”

What comes next: Turn proven results into broader action

Renewable diesel was a starting point for Estes, but the value of Estes’ experience extends beyond one carrier. The program shows that renewable diesel can support a large fleet without new equipment or changes to how tractors operate. Estes plans to continue using renewable diesel, receiving verified environmental attribute information through the market-based mechanism, and exploring new opportunities with Shell.

Other carriers do not have to start from scratch. They can build on what Estes learned and apply the same approach where fuel supply, shipper demand, and fleet operations align. As more shippers seek lower-carbon transportation, C.H. Robinson and Shell can help connect those pieces and open the door for broader adoption.

“The significance of this collaboration extends beyond one carrier or one renewable diesel program. It shows how customer demand, verified fuel use, and environmental attribute information can be connected through a practical market-based mechanism—establishing a foundation that can be replicated and scaled across the freight value chain,” said Tonya Donaldson.

End notes

1. Based on the fuel pathway used in the program, the renewable diesel supplied had a lifecycle greenhouse gas (GHG) emission intensity approximately 70% lower than the baseline ultra-low sulfur diesel (ULSD) fuel. This figure refers to the lifecycle GHG emission intensity of the fuel and should not be interpreted as emissions avoided, fleet emissions reduced, or a quantified emissions reduction achieved by participating customers.

About Estes

Estes is North America’s largest privately owned freight carrier. As an asset-based transportation provider with a global footprint, Estes combines nearly a century of regional freight shipping expertise with the resources, reach, and reliability of a national carrier. Backed by its more than 300 North American service centers, nearly 7,000 next-day lanes, and fleet of more than 10,500 tractors, Estes is committed to getting America's freight where it needs to go, when it needs to get there. And with its continued investment in leading-edge technology, as well as the support of its more than 24,000 employees, Estes always goes the extra mile to deliver exceptional experiences that keep its customers coming back. The carrier’s comprehensive freight shipping solutions include Less Than Truckload (LTL), Guaranteed Delivery, Final Mile, Grocery, Food, and Beverage Logistics, Volume LTL and Truckload, and Custom Shipping, with a commitment to sustainability. From short-haul to global freight forwarding—Estes does it all.