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.
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."