Port operations are increasingly looking to reduce their carbon emissions. Switching to battery-electric technology for cargo handling equipment can help—and developments are underway.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Battery-electric vehicle technology is front and center in the race to create greener supply chains, with many companies investigating ways to reduce their reliance on diesel-powered trucks and material handling equipment in favor of lower- or zero-emission options.
Port operations are no exception, but efforts to electrify the heavy-duty equipment used in those environments are still in the early stages, with some industry-watchers saying the tipping point for adopting battery-electric port equipment is still years away. That’s largely due to the high cost of electrified container handling equipment (CHE), which is used to load and unload containers onto and off of ships—examples include large vehicles called straddle carriers, terminal tractors, and reach stackers. The total cost of ownership for battery-electric versions of that equipment is roughly 1.3 times higher than that of diesel-powered CHE, according to data from Netherlands-based port operating company APM Terminals and Dubai-based cargo logistics company DP World. Until those costs come down, battery-electric CHE is likely to remain a small portion of the equipment operating at ports around the world. In fact, battery-electric equipment is just beginning to be deployed, according to the APM and DP World data, which was published in a white paper last October.
But research and testing are underway. Forklift and material handling equipment manufacturer Hyster is one company at the forefront of those efforts. Hyster is involved in pilot programs with its own zero-emission equipment at ports around the world, including a partnership to provide APM Terminals with 10 battery-electric terminal tractors for APM’s location at the Port of Mobile, Alabama. The manufacturer is also working with the Port of Valencia, Spain, to use Hyster’s hydrogen fuel cell (HFC) reach stacker—another alternative to diesel-powered equipment—for port operations. The Valencia project is part of Europe’s H2Ports initiative, a European Union-funded project that aims to implement fuel cells and other zero-emission technologies at ports.
We asked Herman Klaus, Hyster’s director of application solutions, to weigh in on the trend toward battery-electric port equipment and discuss Hyster’s efforts to help create more sustainable port operations. Here are some excerpts from our conversation.
DC Velocity: Demand for zero-emission material handling equipment continues to rise. How is the trend evolving at ports? How much demand are you seeing for technologies that replace traditional diesel-powered equipment?
Herman Klaus: There is tremendous interest in electric machines in the market as the decarbonization targets in our industry are widely set. We see a lot of interest in our zero-emission portfolio, stretching from our battery-electric products [a wide range of forklifts, including port equipment] as well as our hydrogen fuel cell-powered container handling equipment. We have been able to deploy battery-electric [heavy-duty] forklifts in the field, where several customers had the ability to trial the equipment. Currently, we have two container handlers in operation with a hydrogen fuel cell-electric drive line. Apart from bringing interested customers to these sites, we are also heavily engaging with customers around the world by sharing our technology roadmap and discussing collaboration possibilities.
DCV: What are the main considerations when deciding whether or not to implement electric port equipment?
Klaus: When exploring electric options, it’s important to get a complete operational profile to guide decision-making. The right electrification choice will always depend on the particular needs of the operation, such as the demands and intensity of the operation. There will also be factors dictated by the charging/refueling infrastructure and working patterns. For instance, is opportunity charging possible? … There are also geographical considerations—certain energy options [for example, electricity and hydrogen] are more affordable in some countries than others.
Cost is another factor. The price of solutions will vary based on the equipment type, power source, charging or refueling infrastructure, and other factors. There is currently a significant cost differential between container handling equipment fueled with diesel and alternatives powered by electricity, but as more electric equipment enters the market, economies of scale will help to drive parity. It’s also important to remember that the initial acquisition price is only one piece of the total cost of ownership, and electric equipment can help reduce certain operating and maintenance expenses. For example, electric drivetrains have fewer components and less complexity than ICE [internal combustion engine equipment], which can help reduce the downtime and cost associated with maintenance.
It’s also worth noting the maintenance element, as electric container handlers are categorized as high-voltage equipment, and there are important safety standards operations must understand and comply with to prevent electrical danger or injury.
DCV: How do you handle the charging process for electric vehicles in these environments? How is it different from charging done inside warehouses and distribution centers?
Klaus: Major considerations on this subject include the frequency with which equipment must be refueled/recharged and infrastructure requirements. These are similar questions to what operations with lower-capacity equipment used in distribution centers often consider. For example, warehouses and DCs must schedule charging to fit their productivity requirements and must also consider onsite charging and the ability of the local grid to provide sufficient energy.
First, frequency: Zero-emission options are being designed to provide enough capacity to keep operations moving and avoid the need to stop in the middle of a shift to recharge or, in the case of hydrogen fuel cells (HFC), refuel. But the required time and frequency of recharging or refueling are very important considerations. For large HFC-powered equipment, a rough ballpark figure is that it can take about 15 minutes to fill an empty tank, enough for up to eight to 10 hours of continuous runtime. A lithium-ion battery-powered top pick [a type of cargo handler] capable of opportunity charging, for instance, could have enough power onboard to complete a full eight-hour shift before needing to be charged.
As [for] the local electric grid handling the energy draw of port equipment: The answer depends on the grid stability and capacity in the local area and the fleet size. Charging heavy-duty electric equipment like this does demand a significant energy draw, so it is important to work with a partner who can help understand power requirements, evaluate charging strategies such as staggered or overnight charging when there is a lower burden on the grid, and speak with your local utility provider. It’s also important to note that not all electric equipment is dependent on electricity from the grid. HFC-powered equipment can be a strong option where the local grid is not reliable.
In terms of what operations need onsite in order to charge or fuel equipment: Apart from the container handling equipment, operations will need a charger for battery-electric equipment or hydrogen fueling stations and possibly storage—depending on your hydrogen sourcing strategy—for HFC-powered equipment.
DCV: Can you tell us a bit more about the recent deployments of Hyster’s battery-electric and hydrogen fuel cell port equipment?
Klaus: [Our] hydrogen fuel cell-powered reach stacker [a vehicle that can move containers around ports] at the Port of Valencia has successfully transitioned to real-world operation, marking the official launch of the piloting phase for the [European Union’s] H2Ports project.
It’s important to acknowledge that integrating any new technology requires a period of adjustment. Compared to a standard diesel truck, this initial startup phase requires added input and effort for both the reach stacker itself and the supporting hydrogen infrastructure.
Maintaining operational flexibility is also crucial during this pilot. We may encounter unforeseen challenges, such as temporary fluctuations in hydrogen supply or requirements for specialized parts. However, we’re committed to working collaboratively to address any such issues in a timely and professional manner.
The core objective of this project is to demonstrate the viability of hydrogen fuel cell technology in real-world port operations. Over a minimum two-year period, the reach stacker will be put through its paces, accumulating more than 5,000 operating hours. This data will be instrumental in proving that fuel cell reach stackers are a realistic and reliable option for the future of sustainable port operations.
We also have a special test agreement with APM Terminals in Mobile, Alabama, to deliver … 10 battery-electric terminal tractors [vehicles that move containers within a cargo yard or similar facility]. Hyster is onsite to provide support for these machines. We have a dedicated support team, solely to support our zero-emission port equipment projects around the globe.
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."