A decade ago, electric cars were a revolution. Today, they're a norm, and the virality of electric options is becoming more common place in the supply chain, driven largely by sustainability efforts and cost analysis.
Delivery trucks, forklifts and more are being transformed by electrification in logistics. Jason Massey, founder and CEO of Ndustrial, explains these key spaces where electrification is in play:
- Electric forklifts- These options are lowering operating costs and emissions, improving safety and offering smoother, quieter, and more responsive operation. Moreover, forklift battery chargers can easily be used as responsive assets to provide load flexibility to the power grid during peak events. This can help companies save money and earn revenue through efforts like peak avoidance and demand response.
- Electric terminal tractors (yard goats)- Electric terminal tractors are being deployed at cold storage facilities to drive down emissions and operating costs. Given the heavy usage of these trucks at warehouses, switching from diesel to electric can eliminate more than 100 tons of CO2 per truck annually, along with related pollution. Because their range is inherently limited, these trucks can switch to electric with no range anxiety whatsoever. Moreover, they can sometimes charge using Level 2 chargers, rather than the DC fast chargers typically needed for road-worthy electric trucks (depending on their duty cycle). This involves much less infrastructure investment.
- Electric drayage trucks- Electric trucking makes the most sense over short, well-understood routes. Drayage is a perfect fit. These “first mile” trucks carry goods to and from seaports and intermodal rail yards over short and well-defined distances. California’s recently adopted Advanced Clean Fleets Regulation requires drayage truck owners to start transitioning to zero-emissions technology immediately. Some existing diesel trucks may continue operating until 2035, but all new drayage trucks in the state must be emissions-free as of January 1, 2024.
- Electric Transport Refrigeration Units (eTRUs)- In the cold chain, TRUs or “reefers” have been an often-overlooked source of costs and emissions. That is rapidly changing with the adoption of both hybrid and fully electric eTRUs. Similar to drayage trucks, some diesel TRUs are being phased out by the California Air Resources Board (CARB)– and the regulations apply to companies based anywhere in the world if they operate trucks in the state. Although CARB’s reefer trailer regulations were struck down, the regulations still apply to truck-mounted TRUs.
Talks of electrification in trucking has been a hot button discussion in recent years. According to the U.S. Department of Energy (DOE), by 2030, nearly half of medium- and heavy-duty trucks will be cheaper to buy, operate and maintain as zero emissions vehicles than traditional diesel-powered combustion engine vehicles; Increased use of battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) within the trucking industry will support the decarbonization of America’s transportation sector and advance President Biden’s goals to accelerate the adoption of electric vehicles, address the climate crisis and bolster domestic manufacturing.
A notable upside in the wake of worker shortage, is that electrification in the last mile can reduce driver fatigue and increase recruitment and retention. "With frequent city driving and lots of stops, electric vans and delivery trucks are not only more efficient and sustainable, but much more pleasant to drive. These fleet vehicles also often return to a central location at night where they can charge up during off-peak times. With proper planning and demand management, these depots are ideal early adopters of transport electrification. Many of the same constraints above still apply, but success stories are beginning to pile up anyway," says Massey.
Weighing the pros and cons where electrification makes sense in your operations can come down to 2 questions: "How do I maintain compliance with regulations, where necessary?" and "What upsides are there for employees, sustainability efforts and my bottom-dollar?". The answer to those should lead to better decision making on the road to electrification.
