More electric vehicles (EVs) are hitting the road, and people are adopting them as passenger cars. Now, logistics companies are considering electric fleets to bolster their sustainability goals and move toward the future.
How will the transition affect fleet owners? Here’s what you need to know about the electrification of commercial vehicles.
What Are the Advantages of Electric Fleets?
America’s EV transition has already started, with some of the country’s largest brands using these new machines. Here are seven benefits organizations get with electric fleets.
1. Eliminated Emissions
If you drive on the highway for an hour, you may see hundreds of commercial vehicles transporting goods and services. Most of these machines run on gasoline or diesel, thus filling the air with toxic greenhouse gasses like carbon dioxide (CO2) and nitrogen oxides (NOx).
Electric fleets flip the script by eliminating emissions and fuel consumption. These vehicles rely on massive battery packs to reach each destination. While electricity generation may rely on fossil fuels, the difference between diesel-powered and electric trucks is massive. Removing most emissions also benefits the people around the trucks.
2. Reduced Pollution
Without emissions, electrified fleets are less of an environmental liability. The transportation industry contributes to global warming as much as other sectors, so EVs are a welcome sight to logistics managers with sustainability goals. Electric trucks and vans don’t emit harmful gases into communities or wildlife areas.
While they want to mitigate air pollution, fleet managers also benefit from reduced noise. The absence of internal combustion engines (ICEs) makes electric machines quieter and less of a disturbance in urban areas. Loud noises also disturb wildlife in rural areas, so electrified fleets are better for the environment.
3. Working Conditions
Among the most underrated benefits of electric fleets is working conditions. When you drive a battery-powered truck or van, you worry less about the toxic fumes from the exhaust pipe or something going wrong with the oil. Fleet employees enjoy cleaner air and easier highway drives.
Hearing protection is another crucial benefit to consider. Driving fuel-reliant trucks can cause hearing loss because of their loud operations. Research has demonstrated these medical conditions are prominent in professional drivers. With EVs, truck drivers benefit from quieter drives and less impact on their bodies.
4. Lower Maintenance Costs
ICE trucks are more expensive to maintain because they rely on fuel, oil and other fluids. Fleet owners must regularly change the oil, top off transmission fluid and clean the diesel filter.
EVs can save fleet owners time and money by reducing maintenance costs and allowing them to spend more hours on the road. They’re easier to maintain because there are fewer moving parts. With no oil or fuel necessary, you don’t have to worry about regular wear and tear.
5. New Technologies
The new age of commercial EVs lets fleet owners take advantage of the latest technologies. Regenerative braking is an excellent example because it aids fleet owners when worrying about range. Other technological improvements include better battery management systems and lithium-ion batteries.
In the future, logistics companies can expect even better technologies to help their vehicles. For instance, researchers are developing solid-state batteries with higher energy density and improved range. With these, truck drivers can stop less and shorten client lead times.
6. Improved Image
The push for sustainability exists within logistics, health care and other critical industries. Brands want to use more eco-friendly technologies to make their supply chains greener and help the planet. These strategies are impactful in the long run, especially when you consider the end users.
Customers value sustainability and expect it from the entities they buy from. Therefore, manufacturers want to partner with sustainability-minded suppliers employing ecologically sound practices. Electric fleets make logistics firms more attractive to these companies and consumers.
7. Regulatory Compliance
Why has the automotive industry aggressively moved toward EVs? It may be necessary to comply with federal and state laws. For example, the California Air Resources Board has proposed clean fleet regulations to improve commercial vehicle sustainability. Fleets must phase out ICE vehicles and upgrade to zero-emission vehicles by 2036.
California has been one of the leading states in EV mandates, although similar laws exist in Oregon, New Jersey and other jurisdictions. Regulatory compliance is also crucial for operations in the European Union. Recent policy changes require new heavy-duty vehicles to eliminate emissions by 2040.
How Will Electric Fleets Challenge Logistics Managers?
While electrified cars and trucks have advantages, they aren’t the perfect solution. Here are seven reasons these vehicles challenge fleet owners.
1. Upfront Costs
The most significant barrier to EVs could be the upfront costs. Advanced automotive technologies and their demand make fleet electrification more challenging for smaller enterprises. Electric trucks could cost over $500,000 per vehicle — a massive capital investment.
While the expenses can be significant, fleet owners should consider long-term savings and tax credits. For instance, the Commercial Clean Vehicle Credit lets them deduct electric fleet purchases from their taxes. Semi-trucks and other large vehicles can earn credits up to $40,000. Brands can also save money through reduced maintenance spending and fewer replacements.
2. Limited Competition
Another reason for the high costs is limited competition. Electric semi-trucks and other commercial vehicles only recently entered the market, meaning these manufacturers can charge higher prices. Some logistics managers may have to wait for more competition and lower rates.
That said, the first electric fleets have rolled out in the past few years. Some makers producing electric semi-trucks include Freightliner, Nikola and Volvo. Tesla officially debuted its Semi model in December 2022, with Pepsi among its most notable clients.
Recently, Daimler Truck announced it would produce its first heavy truck — the eActros 600 — toward the end of 2024. This new vehicle is a joint venture with Mercedes-Benz.
3. Range Anxiety
A significant concern for drivers of any EV is the range. Battery capacities have improved since the earliest fleets, though the range doesn’t quite match fuel-powered vehicles. Logistics firms may drive hundreds of miles daily across rural areas, so trucks need strong capacities. Unfortunately, they may have to wait for better technologies.
Solid-state batteries could extend battery ranges and help drivers stay on the road longer. However, experts say the automotive industry must wait a few years. Toyota has made significant progress with these batteries, though their production won’t start until at least 2027.
4. EV Charging Infrastructure
The U.S. and other countries are expanding their charging infrastructure, but it could be lacking in some areas. Vermont and California have plenty of public chargers per capita, but inland areas have yet to match their progress.
One solution is adding more chargers to existing truck stops. These businesses could keep existing fuel stations and place new chargers nearby. Once EVs are the mainstream logistics choice, public chargers could replace the fuel pumps.
5. Charging Times
A standard EV needs at least four hours with a level 2 charger to go from empty to full. Larger automobiles and batteries require more charging time. Therefore, your business may incur more downtime while waiting for vehicles to recharge. This downside could be unattractive to logistics managers.
Compare it to filling up your truck at the gas station. It may take a few minutes if you have a large fuel cell on empty, but you don’t have to wait hours to charge. The time disparity between electric and fuel-powered fleets is significant, especially with looming deadlines and supply chain issues. Fuel cell electric vehicles could boost these prospects in the future.
6. Cybersecurity Risks
Public chargers are convenient for drivers because they can quickly stop before getting back on the road. These technological advancements make transportation more manageable, but they come with caveats. There could be cybersecurity risks when stopping at these charging stations.
The world has become more interconnected through chargers and smart technology. For instance, vehicle-to-grid communication mitigates demand and stabilizes the power supply. However, it could harm your fleet if your vehicles aren’t secure. Outside threats could arise by infecting charging cables with malware and stealing information. The last thing your fleet needs is lost records and sensitive client details.
7. Cold Weather
When the weather gets cold, electric fleets must continue their jobs. In fact, supply chain steadiness is even more critical during these times because it’s the holiday season in many places. While drivers can stay warm in their vehicles, operating in the cold means making the battery work harder than usual.
Vehicles don’t have the fuel to produce heat, so they must rely on batteries even more. Experts say EV range drops during freezing temperatures, leading to more frequent charges and less time on the road. Therefore, northern states and countries may avoid EVs.
Conclusions
The transportation industry is significantly changing because of sustainable technologies. As passenger EVs become more mainstream, you see more electric trucks and work vans.
This transition is significant because of the automotive sector’s environmental impact. If more electric fleets are on the road, the industry will benefit from better worker health and emission tracking.
Additionally, cleaner vehicles will aid communities by emitting less CO2 and NOx into the air. New technologies make these fleets more efficient and ready for modern challenges.
Electric commercial vehicles are relatively new and still growing, so range and cost could be inhibitors. However, continued research and development make the future bright.
Frequently Asked Questions
What is the range of a fully electric semi-truck?
The range of an electric semi-truck varies by maker. Currently, Tesla says its offering can go more than 500 miles, while BYD’s can last 125 miles.
How many commercial vehicles are electric?
EVs are annually growing in volume because of changing corporate policies and legislation. Experts say EVs accounted for 1.2% of truck sales in 2022, though that number will likely rise this decade.
How long do EVs last?
Automotive professionals expect EVs to outlast fuel-powered vehicles because of their fewer service requirements. With better technologies, batteries will last even longer and require fewer upgrades for logistics professionals.