Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Shuttling trucks and trailers to warehouse doors is a noisy job, with the rumble of heavy diesel engines running as a backdrop to the occasional thump of container doors, loading ramps, and lift trucks.
But if recent automotive manufacturing trends continue, dock and yard operations may soon start to grow just a bit quieter. Steady advances in clean-power technology are opening a new front in the quest to optimize operations, as companies begin to replace their diesel-powered yard trucks with electric vehicle (EV) equivalents.
The shift to electric power for trucks of all types is still in its early days, so few facilities have converted their entire fleets over to electricity. One reason is cost. The upfront cost of a battery-powered over-the-road truck, for example, typically far outweighs the cost of one with an internal combustion engine. Although EV proponents say that premium can be offset by government rebates or recouped through fuel and maintenance savings, those benefits take time to accrue.
Another factor limiting the widespread adoption of electric trucks is range. For instance, battery-powered Class 8 trucks today have less than one-quarter the range of a diesel version, making them a poor fit for long-haul routes covering hundreds of miles. Although manufacturers could add extra batteries to extend that range, the added weight would reduce the vehicles’ payload capacity, reducing their benefit.
But the restrictions that have inhibited the deployment of electric trucks on long-haul routes don’t necessarily apply to vehicles that are used strictly for short-distance moves—vehicles many now see as a strong fit for dock and yard work.
HOME, HOME IN THE YARD
As for what makes them a strong fit, electric units offer a number of advantages. For one thing, yard trucks—also called terminal tractors, spotter trucks, or yard jockeys—often run 16 or 24 hours per day with fresh drivers behind the wheel for each shift. That extended use pattern means that the fuel savings add up quickly with electrics, a huge plus at a time when fossil fuel prices have gone through the roof.
And because they tow trailers and containers within the confines of a dock, yard, or intermodal facility, an electric yard truck never strays far from the electrical charging infrastructure needed to refresh its batteries, reducing the likelihood it will run out of juice and become stranded.
Penske ordered those vehicles fromOrange EV, a Kansas City, Missouri-based manufacturer of heavy-duty electric vehicles. In the right applications, Penske said, those EVs could deliver benefits such as zero tailpipe emissions, the ability to operate up to 24 hours on a single charge, and a 50% shorter stopping distance than standard trucks thanks to regenerative braking systems that use the vehicle’s momentum to recharge its batteries.
“Yard vehicles are a great opportunity for electrification,” says Patrick Watt, vice president for alternative vehicle and emerging technology at Penske Truck Leasing. “They have lower road speeds so they need less energy, they have proximity to charging equipment, and their performance allows drivers to operate in most circumstances,” an improvement over earlier EV models that lacked the strength to compete with diesel, he explains.
Those attributes also make battery-powered yard trucks a strong option for companies that are trying to cut greenhouse gas emissions and shrink their carbon footprint, Watt says. On top of that, these vehicles are ready for deployment right now, he adds. “We’re early in the transition to electric vehicles [in over-the-road applications], so we’re continuing to see advancement of the technology. It’s going to be a much better, more efficient vehicle in 10 years,” Watt says. “But for an electric yard tractor, the technology you see today will continue to be effective for a long, long time.”
Another reason Penske is investing in electric yard tractors is that the electric design has proved popular with yard workers, according to Watt. “We’ve gotten positive driver feedback,” he says, noting that drivers prefer quiet battery-powered models over “sitting in a diesel vehicle that’s idling loudly, [spewing] out emissions, and vibrating more [than] an electric truck. It’s similar to an electric golf cart; it’s a pleasant environment to sit in as you wait for your next shift.”
But even more important is the fact that electric yard trucks have shown to have high rates of uptime, proving resistant to mechanical breakdowns and requiring only short, frequent recharging sessions to keep their batteries powered up. “People think about running the battery cell all the way down and then charging it all the way back up, but with just 15 to 20 minutes of charge at every opportunity that’s a natural break [for the driver], you’ll never have to worry about running it down to zero,” Watt says. “That’s a change of mindset for people who are used to thinking about diesel in miles per gallon or in gallons per hour of operation.”
STAYING OUT OF THE REPAIR SHOP
Avoiding breakdowns and delays is a big selling point for electric yard trucks, agrees Zack Ruderman, vice president of sales and marketing at Orange EV, which currently has some 500 heavy-duty electric yard trucks operating in 130 fleets across 28 states, Canada, and the Caribbean. (The company recently expanded its yard truck rental program to include electric spotter vehicles in 48 states.)
“The market says that their biggest pain point is downtime [when trucks need repairs],” Ruderman explains. “To rent a replacement truck on short notice is expensive in this market. Keeping extra trucks on site is expensive too. But you need the uptime because [yard handling is] a mission-critical operation.”
To keep downtime to a minimum, Orange says its battery-powered trucks can be recharged when the driver is taking a break anyway. As Penske noted, that recharging time adds up fast over lunch periods and 15-minute breaks during shifts.
Additional uptime comes from avoiding long stays in the repair shop, Ruderman says. Orange EV claims that battery-powered trucks break down less than diesel models. Plus, they lack components like engine transmissions, emission control units, and radiators that are time-consuming (and costly) to maintain.
They’re also designed for versatility. Orange EV says its base model can do 70% of all the jobs a diesel model can do, falling short only for the 10% of jobs that involve steep hill grades and the 20% that demand high speeds. To fill those gaps, the manufacturer plans to launch a stronger “port truck” version with greater speed and power in 2023. “Within three years, more than 50% of new yard truck orders will be EVs. Yard trucks are leading the electrical transformation,” Ruderman says.
STAYING POWER
Ruderman may be right. Companies across the supply chain have been testing electric yard trucks in recent years, and they apparently like what they see. The result has been a rapid increase in production and sales of battery-powered trucks for dock and yard management duties.
Many of those users initially chose electric models for environmental reasons, such as greening up their operations or meeting corporate environmental, social, and governance (ESG) goals. But pilot tests have given them extra reasons to continue using electric yard trucks, as they have found additional benefits in fuel savings, extended uptime, and driver satisfaction.
As electric truck production reaches new levels of maturity, the sector is primed for quick growth in the coming years. And much of that growth will likely take place in an often-overlooked corner of the logistics sector, the trailer and container yard outside your local DC.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”