Eager to see how its newly developed fuel cell device would fare in trials, East Penn Manufacturing decided to test the unit itself. But round-the-clock DC operations and 4,000-pound loads would make this a rigorous trial.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
When it came time to begin testing its prototype hydrogen fuel pack for lift trucks, East Penn Manufacturing didn't have to look far for a beta tester. With a 180,000-square-foot distribution center operating 24 hours a day, the company already had an ideal test lab. Why not test the device itself?
And so, for the past two-plus years, the company has been using eight forklift trucks powered by the device, a hybrid fuel cell/lead-acid battery unit, at its DC in Topton, Pa. The trucks work alongside their 20 battery-powered counterparts at the cavernous facility, which operates around the clock five days a week. As tractor-trailers from the plants arrive at the DC, the forklifts offload pallets of batteries and place them in storage. They also ferry pallets from storage to the loading-dock area when needed. Shuttling pallet loads of batteries is no small task; the loaded skids weigh between 3,500 and 4,000 pounds apiece on average.
Best known for its Deka brand batteries, East Penn Manufacturing Co. Inc. makes batteries and accessories for the automotive, marine, farm equipment, and industrial truck markets. Though a DC operated by a leading battery maker might seem an unlikely proving ground for fuel cells—after all, fuel cells might soon be competing with batteries in the motive power market—East Penn doesn't see the cells as a threat. In fact, it sees them as a potential addition to its product line.
East Penn is not working on the fuel cell project alone, however. In December 2004, the Lyon Station, Pa.-based company began discussions with Nuvera Fuel Cells of Billerica, Mass., about developing a fuel cell-based unit for electric lift trucks. The result of their collaboration is the ReadyPower, a hybrid device that combines Nuvera's fuel cell technology with East Penn's lead-acid battery design. The two companies eventually hope to make the device available commercially.
Before it can begin selling the ReadyPower to customers, however, East Penn first needs proof of concept. Testing the unit on its own lift trucks has given the battery maker a way to validate the concept as well as work out any bugs. "We want this operation to be as seamless as possible for our customers' operations," says Jim Rubright, East Penn's vice president of motive power sales and the executive in charge of the fuel cell project. "They don't have time to experiment with new technology. They need to know it will work and work well, and we plan on proving that to them by using it in our own operation."
Getting the lead out
Although the use of fuel cells to power vehicles is still in the developmental stages, the technology itself is nothing new. First developed in the 19th century, fuel cells later were made famous when the National Aeronautics and Space Administration used fuel cells to supply electricity and water on manned space flights.
Hydrogen fuel cells like the ones used in the ReadyPower units use hydrogen and oxygen to produce electricity. The only byproducts are water and heat, which makes them an environmentally friendly power source. Fuel cells differ from batteries in that they consume reactant (hydrogen), which must be replenished, whereas batteries store energy chemically. The ReadyPower unit consists of a fuel cell stack and a set of "peaking batteries" to provide auxiliary power. The peaking batteries are sealed absorbed glass mat (AGM) units that require no maintenance.
In operation, the fuel cell provides a regular supply of electric power to operate the vehicle and, at the same time, recharge the peaking batteries on board the truck. If the truck needs extra power to, say, lift a heavy load, the unit draws on the batteries for the extra oomph. "If the truck needs more power than the fuel cell can provide, the batteries kick in," explains Rubright.
The ReadyPower unit also contains a tank filled with compressed hydrogen gas. Although the size of the tank may vary, all tanks hold at least 0.6 kilograms of hydrogen. During its trials, East Penn has been experimenting with different sized hydrogen tanks and peaking batteries. (The fuel cell stack, by contrast, has remained a constant size in all models—14.6 by 17.3 by 20.7 inches.) A control panel is plugged into the ReadyPower unit and mounted on the lift truck to let the operator know when his fuel tank is empty.
The ReadyPower unit itself was engineered to be easily interchangeable with a lead-acid battery. "Our design is basically plug and play," Rubright says. "We can pull a lead-acid battery out and put a ReadyPower in its place if we want to, with no modifications to the truck."
Rubright reports that one of the challenges in designing the ReadyPower unit was handling the disposal of the water generated by the system. After some experimentation, East Penn came up with a mechanism for water evaporation as well as reuse. "In some other systems, you have to empty a [water] collection tank," he explains. "Ours is a water-neutral system."
In the design process, East Penn also had to address counterbalance issues— that is, keeping weight distributed evenly in order to prevent the truck from tipping over. The ReadyPower unit meets the same center-of-gravity and counterweight requirements as the lead-acid battery it is replacing.
Rubright reports that the ReadyPower unit has undergone constant tweaking during the last two years of testing. "We've subjected our unit to shock and vibration testing," he says. "And we've [made] a lot of improvements."
Consistent performers
As for the hybrid units' performance, the forklift drivers report several advantages to using the ReadyPower unit over traditional lead-acid batteries. For instance, the hybrids eliminate the need for operators to drive over to a special charging area at the end of a shift and remove a 3,000-pound battery for recharging. Instead, the drivers pull the truck up to a dispenser and refuel the unit with liquid hydrogen. Refueling takes just 30 to 90 seconds. "The operators love it," says Rubright. "And you no longer have to maintain a battery room with charging equipment."
The operators also report that the trucks using the ReadyPower units run "crisp." As Rubright explains, they're referring to the hybrid unit's ability to deliver a steady supply of power throughout the shift, in contrast to the traditional battery, whose voltage drops as the day wears on, making the truck sluggish. "As long as you have hydrogen in the [ReadyPower's] tank," he says, "the truck operates as if it's on a freshly charged battery all day long."
Rubright suspects that the elimination of "voltage lag" has led to increased productivity within the distribution center. In future tests he hopes to be able to demonstrate that operators on ReadyPower-equipped trucks move more pallets per day than their counterparts on traditional trucks do.
A chicken-egg dilemma
Although the beta ReadyPower units have shown considerable promise in testing, the technology still faces some obstacles to widespread adoption. For starters, a distribution facility using this technology needs storage tanks of hydrogen fuel on site. A company could purchase hydrogen from a commercial gas dealer or generate it from natural gas. East Penn plans to offer customers a "Total Power Solution" that provides on-site hydrogen generation, storage, and dispensing abilities.
In its own operation, the company has been producing hydrogen from natural gas at its site through the process of steam reforming. In that process, natural gas (mostly methane) is combined with steam over a catalyst bed to produce hydrogen. "There's a significant advantage to generating your own hydrogen," says Rubright. "The cost per kilogram for generating your own hydrogen can be half to two-thirds the cost of what you buy."
But the main obstacle to wider deployment of this technology remains price. "The industry knows we have to bring the cost down," says Rubright, who declined to give specifics on the actual cost of a ReadyPower unit. "It's the old chicken and egg thing. You have to have economies of scale [to bring down the cost], and at the same time, you're trying to get the technology out there in the market [to develop the needed scale]." He acknowledges that the technology may never be economical for light-duty or short-shift applications.
As for the next step, East Penn is now preparing to expand its pilot beyond its own four walls. Rubright reports that the company has lined up customers to deploy beta ReadyPower units in their own lift trucks later this year.
With more companies signing on to use the hybrid technology, is East Penn worried about the effects on its battery sales? Rubright dismisses that concern. He believes that the traditional lead-acid battery units will continue to be sold alongside units like the ReadyPower. "We envision this as one of the solutions in the bag," he says. "Whatever works best for the customer is what we want to recommend."
Editor's note: To read more about the use of fuel cells to power industrial trucks, see our June 2007 story "fuel cells get hotter."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."