What is the impact on operating costs from conversion to electric vehicle freight trucks (EVs)?
One answer to that question has just been provided by logistics firm Ryder, based on a detailed study of some 13,000 trucks of multiple sizes it manages as part of dedicated carriage for its shipper customers.
Supply Chain Digest Says...
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The report adds that “Mandating an EV transition at this time may lead to disruptions in our nation’s supply chains as well as crippling inflationary pressures on all products moved by trucks.” |
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The headline news: switching over to EVs from internal combustion engine (ICE) trucks results in an increase in operating costs of up to 5% for light-duty EVs, while the jump is a huge 94% to 114% to convert heavy-duty trucks and from 56% to 67% to convert mixed fleets.
What’s more, the report finds that - assuming that the price of goods would increase due to higher transportation costs – the cost impact to convert a mixed fleet from ICE to EV these increases could cumulatively add approximately 0.5% to 1% to overall inflation, a significant increase that could impact the broader economy.
To enable the analysis, Ryder examined the potential economic impacts of implementing an all-EV fleet. Ryder analyzed the impact in California and Georgia, as electricity, fuel, and labor costs range from some of the highest in the country to more modest. Ultimately, Ryder says, the analysis set out to understand the cost of electrifying a fleet and the potential impacts on businesses and consumers from those costs.
Ryder first calculated the costs to run an individual truck for the three types of vehicles. Ryder then applied the individual costs to a fleet of 25 vehicles of mixed classes and types and compared the cost of owning and operating that fleet in California and Georgia. The fleet composite is based on the overall mix of commercial vehicles in the US according to third-party data, and includes 11 light-duty vans, four medium-duty straight trucks, and 10 heavy-duty tractors.
Ryder notes the Class 8 comparison assumes hauls ranging from 100 to 500 miles, one to two trips per day, about 109,000 miles annually, and 1.2 local Class A drivers per diesel vehicle (typical for an ICE unit in Ryder’s dedication transportation operations).
As noted above, the analysis found the annual operating costs were about 5% greater for light duty EV trucks in Georgia, though smaller (3%) in California. And the costs delta gets larger as the size of the trucks increases.
The chart below from the report shows costs for Class 8 heavy duty trucks were a whopping 114% higher in Georgia for EVs than for ICE tractors. Note TTC stands for total cost to transport.
Class 8 Costs Comparison EV vs ICE Trucks
Looking at a mix of trucks across a 25-vehicle fleet, to convert that same size fleet in Georgia, the total costs is estimated to be more than $3.7 million, or a 67% increase.
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In conclusion, Ryder notes that its analysis “underscores the reasons EV adoption for commercial vehicles remains in its infancy. In addition to the limited support infrastructure and EV availability, the business case for converting to EV for most payload and mileage applications, is extremely challenging.”
The report adds that “Mandating an EV transition at this time may lead to disruptions in our nation’s supply chains as well as crippling inflationary pressures on all products moved by trucks.”
The interesting full report is available here: Charged Logistics: The Cost of Electric Vehicle Conversion for U.S. Commercial Fleets
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