Although electric trucks may be years away, a number of truck makers are coming out with hybrid mid-sized trucks that run on both diesel and electric power. And big rigs may be just around the corner.
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.
This past summer, the Port of Los Angeles saw an unusual sight—an electric truck ferrying containers from terminals to warehouses and rail yards. The truck, a prototype vehicle, was a short-haul drayage truck capable of pulling a 60,000-pound cargo container at a top speed of 40 miles an hour.
The experimental truck, which produces zero emissions, has been greeted with enthusiasm in California, which has adopted a number of regulations to improve air quality. "We could eliminate a lot of truck pollution in and around the port with a fleet of these workhorses," said Los Angeles Harbor Commission President S. David Freeman in a press release.
Testing of the prototype, which was manufactured by Balqon Corp. of Santa Ana, Calif., was still under way at press time. The port planned to put the truck into regular service to see how it would hold up under the daily stress of draying loads. However, early results have been sufficiently encouraging that the port has already decided to purchase five more of the vehicles, which go for about $208,000 apiece.
Given the high cost of diesel these days, the idea of using electric trucks has undeniable appeal. But no matter how well the prototype performs, battery-powered trucks will likely be limited to short-haul drayage applications, at least in the near term. Their range makes them impractical for extended highway use. When loaded, the prototype vehicle being tested in Los Angeles can go only 30 miles before needing a battery charge (Balqon says unloaded trucks can travel up to 60 miles without a recharge).
Although it's unlikely we'll see all-electric trucks tooling down America's highways anytime soon, a variation on the electric truck—the hybrid diesel electric—shows a great deal of promise. In the past year, a number of truck makers have begun production on mid-sized trucks with hybrid electric systems similar to what's used in automobiles. Although some question whether the technology will ever be a good fit for the biggest of the big rigs—Class 8 trucks—mid-sized trucks using hybrid technology are already starting to appear in dealer showrooms and even on the nation's highways.
All charged up
The hybrid trucks currently on the market use what's known as "parallel electric" technology—the same technology that powers passenger cars like the Toyota Prius. "You have an electric motor that works alongside an internal combustion engine," says David Alexander, an analyst at ABI Research of Oyster Bay, N.Y., who wrote a report on hybrid technology last year. "The electric motor provides a boost to the ... engine to take some of the load off and reduces consumption of fuel." These vehicles also save energy in stop-and-go driving through "regenerative braking," a technology that allows the vehicle to capture energy when the driver brakes and store that energy in a battery for reuse in restarting and low-speed operation.
Parallel electric technology is particularly well suited to trucks used in local delivery service. The vehicles' frequent stops and starts create plenty of opportunities to capture energy for the battery through braking. "Hybrid trucks work well in stop-and-go traffic," says Daniel Sperling, director of the Institute for Transportation Studies at the University of California at Davis. "You can get back the extra cost for a hybrid electric truck in a short time span."
Small vans using parallel electric technology—technically considered Class 4 and 5 trucks—have been around for five years. But recently, truck manufacturers have begun applying parallel electric technology to the larger Class 6 and 7 trucks as well. In Sweden, for instance, Volvo Trucks is currently running a pilot to test the technology on trucks designed for collecting trash.
Here in North America, Navistar International of Warrenville, Ill., started manufacturing hybrid Class 6 and 7 trucks a year ago. "At low speeds, the truck is powered by an electric engine," says Mark Johnson, the company's marketing manager. "At 25 miles an hour, the diesel engine kicks in."
At press time, Johnson said his company had sold 200 of these hybrid commercial trucks, which command a premium price compared to traditional vehicles. How much of a premium? Johnson says a traditional Class 6 or 7 truck goes for $45,000 to $60,000, depending on the specifications, while a hybrid unit costs somewhere between $80,000 and $90,000. He notes, however, that fuel savings help offset some of that price differential. "You'll see fuel savings between 30 and 40 percent," says Johnson. "At $4.50 for a gallon of diesel, the truck could pay for itself in three to four years."
Early this year, Freightliner of Portland, Ore., announced that it, too, was beginning production on a hybrid medium-duty truck—the M2 106, a Class 6 truck designed for hauling beverages. Although the company, which is part of Daimler Trucks North America LLC, declined to release sales or production numbers for the truck, David Bryant, Freightliner's vocational sales manager for hybrid vehicles, says he's seeing a lot of people "pulling the trigger on orders now."
Peterbilt Motors Co. of Denton, Texas, has also announced plans to begin making medium-duty dieselhybrid vehicles. A plant in Ste. Therese, Quebec, began production on both a Class 6 and a Class 7 hybrid truck this summer. The two models use a parallel hybrid system with an electric motor alongside a diesel engine. Peterbilt spokesman David Giroux says that a wine distributor in California has already placed an order for the hybrid diesel trucks, which it plans to begin using this fall.
Are Class 8s feasible?
Not content with building only mid-sized hybrid trucks, Peterbilt has plans to scale up hybrids to Class 8s, the largest trucks. The Texas truck maker is currently working with Wal-Mart Stores to develop a Class 8 prototype. After the tests with Wal-Mart are finished, Giroux says, his company will decide whether to take the Class 8 hybrid truck into production.
A number of industry experts are skeptical that over-the-road tractors pulling 80,000-pound loads can run successfully on parallel electric technology. "The concept of scaling up a Prius technology for a Class 8 truck is a nonstarter," says Alexander of ABI Research. "It's difficult for hybrids to work on Class 8 trucks because most of their operation involves cruising at 60 miles an hour or better."
In fact, Alexander says, it's more likely that with Class 8 trucks, truck manufacturers will end up using the hybrid technology to run ancillary systems like airconditioning units, cooling fans, or power steering, which now sap power from the engine. "It will not double fuel economy," he says. "But 5 percent here and 2 percent there add up."
Peterbilt spokesman Giroux acknowledges that adapting Class 8 trucks to use Prius-type technology presents some challenges. One of those is fuel efficiency. While mediumduty hybrids can expect fuelefficiency gains in the range of 30 to 60 percent, he says, gains for heavyduty hybrids would likely be only 7 to 15 percent. "In the medium-duty trucks, there's a payback because of the stop-and-go cycle," he says. "It's more difficult if you're traveling long distances because you're not stopping to regenerate the batteries."
At least one trucking expert believes we may yet see Class 8 hybrid trucks on the highways, though they'll most likely be used for regional transportation, moving loads from warehouses to retail stores, for example. As prices for big rig hybrids drop, companies may be able to justify the purchase of Class 8s used in local distribution, says Bill Van Amburg, a senior vice president at CalStart, a Pasadena, Calif.-based nonprofit organization that works with both the public and private sectors to develop advanced transportation technologies. "Hybrids will not take over Class 8 trucks," he says, "but it would be short-sighted to say it won't be a fit in the future."
More avenues to explore
Even if parallel electric technology proves impractical for heavy-duty trucks, Alexander says, truck manufacturers could try other approaches, such as "ultracapacitor" technology. Unlike batteries, which store energy in a chemical form, ultracapacitors store electric charges on plates. "It allows a lot of energy to be stored quickly and released quickly," says Alexander.
Another option would be to deploy what's known as a series electric system, which General Motors is using in the development of its Chevrolet Volt automobile. In that type of system, an electric motor runs the vehicle all the time, and a gasoline engine simply recharges the battery. But that's not an option for big trucks right now. "They need bigger batteries than are available today for this to work," says Alexander.
With the era of cheap oil apparently over, truck manufacturers will surely continue to experiment with technology and develop variations on hybrid trucks of all shapes and sizes. In the meantime, though, American truck manufacturers are gearing up for a surge in sales of medium-sized hybrid electric trucks. "We expect our sales to grow exponentially next year," says Johnson of Navistar International. "Customers are realizing that higher diesel prices are a long-term change, and they have to invest in their equipment to mitigate the increases in fuel prices."
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."