Coming soon to a fleet near you: ultra-clean lifting machines
The EPA's stringent Tier 4 final emissions restrictions will apply to all diesel-powered lift trucks by the end of next year. How will the rules affect your fleet?
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
For those of us of a certain age, the word "diesel" evokes images of smelly, soot-spewing vehicles clogging highways and crawling around construction sites. Future generations, though, are unlikely to have those same associations. Thanks to stringent emissions control regulations issued by the U.S. Environmental Protection Agency (EPA), it won't be long before the exhaust from diesel engines is clean and clear.
Many people are familiar with those regulations as they apply to over-the-road trucks. But they also apply to diesel-powered "nonroad" vehicles, including the heavy-duty lift trucks typically used outdoors. The first level of emissions restrictions for diesel-powered lift trucks—designated Tier 1—went into effect in 1997. Over the next decade, Tier 2 and Tier 3 as well as Tier 4 interim rules were introduced.
But even stricter standards are looming. The next iteration, the Tier 4 final standards, mandate that harmful emissions from diesel-powered lift trucks be reduced by more than 90 percent compared with emissions levels before the regulations were first imposed.
Here's a look at what those rules require, how manufacturers are responding, and what they will mean for fleet operators.
RULES OF THE NONROAD
The main components of vehicle emissions are particulate matter (PM), nitrogen oxides (NOx), hydrocarbons (HC), and carbon monoxide (CO). Of these, only PM (soot, or "black smoke") and NOx are currently regulated by the EPA, according to J.B. Mayes, manager, counterbalanced product management for the Hyster Co.
Tier 4 interim regulations require that diesel engine manufacturers reduce PM exhaust emissions by 96 percent and NOx emissions by 76 percent compared with the Tier 1 standards, Mayes says. The Tier 4 final regulations reduce NOx emissions by 94 percent compared with the Tier 1 standards.
That last mandate, as they say, is a doozy: According to the lift truck manufacturers we spoke to for this article, moving from Tier 4 interim to Tier 4 final compliance will be difficult and expensive. "The EPA's objective is that whatever we shoot out of the exhaust should be cleaner than what we take in," says Tim Webb, manager, product development for Hyundai Construction Equipment Americas Inc. "Everybody can get to that, but the problem will be the components and the cost for modification of the diesel engine."
Compliance deadlines are keyed to engine output in kilowatts (also expressed as horsepower). For lift trucks rated up to 75 hp, the Tier 4 final standards went into effect Jan. 1, 2013. The deadline for engines rated between 174 and 750 hp is Jan. 1, 2014, and for those between 75 and 173 hp, the deadline is Jan. 1, 2015. Only engines manufactured on or after those dates are affected.
DESIGN CHALLENGES
For lift truck manufacturers, the challenge is to redesign their products to comply with the regulations but without compromising fuel efficiency, performance, or durability.
Most of the lift truck makers are partnering with engine manufacturers such as Cummins, Perkins, Kubota, and Deutz. (A notable exception is Toyota, which is producing its own Tier 4 final engine.) The engine manufacturers are using a variety of technologies to meet emissions requirements. The most common include:
Selective catalytic reduction (SCR) systems, which break down NOx into nitrogen and oxygen by mixing a reagent (called diesel exhaust fluid, or DEF) into the exhaust gas flow in a catalytic converter.
Exhaust gas recirculation (EGR), which dilutes the oxygen in the combustion chamber, lowering the combustion peak temperature and reducing the formation of NOx. The lower temperature increases particulate matter, which must be filtered out.
Diesel particulate filters (DPF), which trap particulate matter from the exhaust and burn it off to prevent soot from being released into the air.
Diesel oxidation catalysts (DOC), which convert carbon monoxide and hydrocarbons to water vapor and carbon dioxide.
Turbochargers, which help small, lower-emission engines generate more horsepower.
Each lift truck manufacturer must decide which combination of technologies will work best with its models and the applications for which they were designed. Hyundai, for example, will use diesel particulate filters in its 1.5- to 3.3-ton trucks and a diesel oxidation catalyst/selective catalytic reduction combination for larger trucks. Mitsubishi Caterpillar Forklift America Inc. (MCFA) chose diesel particulate filters for its Cat lift trucks and Mitsubishi forklift trucks lines. For its largest trucks, Hyster will use exhaust gas recirculation with a diesel particulate filter. Toyota's 8-Series trucks feature a new electronic common-rail fuel injection system that works with an intercooled turbocharger and a diesel oxidation catalyst. And Crown Equipment's Hamech V811 Series trucks are equipped with a diesel oxidation catalyst system. (See sidebar for a list of some of the Tier 4 models that are now available or will be shortly.)
The regulations have created some design challenges for lift truck manufacturers, says Jason Provancher, director of IC (internal combustion) product development and engineering at Crown Equipment Corp., which makes diesel-powered lift trucks under its Hamech brand. Components like the canister-shaped diesel particulate filters and the containers required to hold and burn oxidation catalysts take up space inside a truck, and it can be difficult to make room for them in a small lift truck, he notes. Manufacturers may also have to redesign the inner workings and exterior cowlings and panels to accommodate changes in the size and positioning of exhaust pipes, hoses, cables, and other components, says Lucas Dumdie, a product line manager at MCFA.
Another concern is the effect of overheating on the combustion process and the changes in emissions levels this can bring. Toyota, for one, has introduced an improved cooling system with the ability to reduce power usage automatically to help prevent overheating and maintain the proper emissions levels, according to Mark Faiman, a product manager for Toyota Material Handling, U.S.A., Inc. (TMHU).
Typically, operators must stop the truck and wait while accumulated particulates burn off. That's a productivity-buster, says Dumdie. So some manufacturers have found ways to carry out that process while the truck is running, without overheating. The Perkins-built engines in Mitsubishi's and Cat's Tier 4 final trucks, for example, heat up the DPF and automatically burn off soot while the vehicle is in operation.
Diesel lift trucks are designed for heavy-duty applications, so manufacturers that opt for smaller engines (which use less fuel and therefore, produce lower emissions) can't compromise power or lifting capacity. Toyota addressed that by incorporating a new electronic common-rail fuel injection system and an intercooled turbocharger into its fuel-sipping four-cylinder engine. Thanks to these and other design changes, the new model provides greater torque and as much horsepower as the previous inline six-cylinder engine, says Cesar Jimenez, TMHU's national product planning manager.
Fuel and lubricating oil are another consideration with Tier 4-compliant engines. Because sulfur can severely damage catalytic converters, low-emissions engines require ultra-low-sulfur diesel (ULSD) fuel, Provancher says. Although ULSD is in wide use, it may not be readily available everywhere lift truck fleets operate, he observes.
As for engine oil, because the emissions control systems generate more heat and the ash residue left when lube oil burns off during combustion can foul particulate filters, CJ-4 lubricant is recommended for engines using DPF and EGR systems, says Webb. "CJ-4 is more resistant to heat and produces less ash," he explains, which in most cases prolongs the interval between cleanings.
BUYERS BE AWARE
Initial purchase prices for Tier 4 final lift trucks will be higher than those for their Tier 3 predecessors. That's not surprising considering the additional costs engine and lift truck makers have incurred over the past decade, Provancher says. It's too early to say what Tier 4 final pricing could or should be over the long term, he continues, "but realistically, there's a good substitute with LPG (liquefied petroleum gas), and the market is only going to bear so much when it comes to purchase price." In the short term, there will be opportunities to buy less-expensive, lower-tier trucks, but he expects that supply will dry up in about a year.
Lift truck makers counter that the fuel savings from their Tier 4 final models compared with their previous models should offset the higher prices. Hyundai and Hyster, for instance, expect to boost average fuel efficiency by 10 percent and 15 percent, respectively, in the models they've scheduled for rollout. Mitsubishi and Cat, meanwhile, have both achieved a 22-percent improvement in fuel consumption. But Toyota may be the champion when it comes to fuel savings: The company is citing a 30-percent average reduction in fuel consumption for its 8-Series diesel trucks compared with the previous model.
Those improvements are due not only to hotter-burning, more efficient engines, but also to manufacturers' concerted efforts to cut fuel consumption—and thus, the total cost of ownership—through such innovations as regenerative braking, automatic engine shut-off, idle management, and on-demand hydraulic, cooling, and power steering. But there could be hidden costs. Engines that use selective catalytic reduction technology require a reagent called diesel exhaust fluid (DEF) that is approximately one-third urea and two-thirds water. "Trucks utilizing this technology require separate DEF tanks and regular fill-ups, creating additional costs for the user," Mayes notes.
Maintenance costs should not be much higher, according to the lift truck makers. Depending on the type of emissions equipment, infrequent or even no cleaning (in the case of DOC systems) will be required. Some diesel particulate filters, for instance, could go 4,000 hours or more before they need cleaning. But the Tier 4 final engines are highly electronic and thus "more complex than the diesel engines of yore," says MCFA's Dumdie. "As a result, they are a lot different to troubleshoot."
There's speculation that the advent of ultra-clean diesel engines could cause a shift in the lift truck market. For one thing, when pricing eventually comes down, there may not be as big a cost difference between electric and IC trucks as there is now, Webb suggests. "I think we'll see a more level playing field for the initial cost of a truck, battery, and charger versus the initial cost of a diesel truck."
The Tier 4 final engines, moreover, will be clean enough to use indoors in some areas, making them appropriate for at least a few applications where they've long been barred. Diesels could also become more attractive in California, where the California Air Resources Board (CARB) has imposed fleetwide emissions limits. Instead of having to replace older trucks with electrics or other power sources to keep a fleet's total emissions below the applicable limits, Toyota's Faiman says, buyers could purchase the powerful diesels they want and still be in compliance with the regulations.
That situation could soon spread to other states. The EPA has delayed approving CARB's diesel emissions rules for now, Faiman says, but if and when it does, other states with strict air-quality-attainment goals could follow California's lead and adopt fleet emissions averaging, too.
Where to learn more
There are many information resources available that explain the complex emissions control regulations for lift trucks. Here are some we found helpful:
The U.S. Environmental Protection Agency Emission Standards Reference Guide for compression-ignited nonroad vehicles provides an overview and includes links to the regulations for lift trucks.
The California Air Resources Board's "Diesel Programs and Activities" page includes everything you need to know about California's emissions restrictions.
Hyster's "2011 Tier 4 interim/Stage IIIB Emissions Standards" white paper explains and compares the different emissions control methods.
Tier 4 final lift trucks
Every manufacturer of diesel-powered lift trucks is working to develop models that comply with the Environmental Protection Agency's Tier 4 final emissions control regulations. Here's a quick look at some that are already on the market or will be very shortly.
Cat Lift Trucks says its DP40N1 and DP55N1 series of 8,000- to 12,000-pound capacity diesel pneumatic-tire lift trucks provide a 21.6-percent increase in fuel efficiency. The diesel particulate filter (DPF) will automatically regenerate, and the Perkins 854F engine will not require any ash service.
Crown Equipment'sHamech V811 Series pneumatic-tire forklift offers lifting capacities of up to 11,000 pounds for a variety of outdoor applications. Its Deutz TD 3.6-liter engine is equipped with a diesel oxidation catalyst (DOC) exhaust system that is maintenance-free and does not require periodic service.
The first of Hyundai's extensive line of Tier 4 final lift trucks will be available in the fourth quarter of 2013; the others will debut in 2014 and 2015. Trucks of up to 3.3 tons will use a diesel particulate filter (DPF) system. Larger vehicles will use a diesel oxidation catalyst (DOC) and selective catalytic reduction (SCR) system.
Hyster's H80-120FT Series of Tier 4 final lift trucks will feature an efficient Kubota 3.8-liter engine with exhaust gas recirculation and a diesel particulate filter. The pneumatic-tire forklifts will handle the toughest duty with lifting capacities ranging from 8,000 to 12,000 pounds.
Mitsubishi Forklift Trucks' FD40N1-FD55N1 series of 8,000- to 12,000-pound capacity diesel pneumatic-tire forklifts provide a 21.6-percent increase in fuel efficiency. The diesel particulate filter (DPF) on the Perkins 854F engine does not require any ash service and automatically regenerates during normal operation.
Toyota Industrial Equipment's 8-Series pneumatic-tire trucks handle loads of 8,000 to 17,500 pounds and feature a Toyota-built four-cylinder engine with a diesel oxidation catalyst, an electronic common-rail fuel-injection system, and an intercooled turbocharger. The 8-Series offers on average 30-percent lower fuel usage with as much horsepower and greater torque than its six-cylinder predecessor.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.