The trucking industry is on the cusp of major change as the push for supply chain decarbonization and cleaner environmental practices takes hold. As supply chain companies take greater steps toward running cleaner supply chains — driven by company and consumer values and regulatory mandates — the need for practical solutions to reduce emissions has never been greater. According to the U.S. Environmental Protection Agency (EPA), the transportation sector is responsible for 28% of total greenhouse gas emissions in the country, with heavy-duty vehicles contributing over 23% of this total.
While the need for change is evident, the reality is that decarbonization isn’t as simple as shifting to electric vehicles (EVs). A single EV tractor can cost as much as $250,000 more than a diesel truck, making conducting a full fleet replacement fiscally impractical. Furthermore, the time it takes to charge an EV tractor, the lack of infrastructure, and the reduced range of EVs could drastically decrease productivity for drivers and lead to longer transport times for freight.
The path toward improved supply chain decarbonization will be a gradual shift, providing measurable improvements today while enabling fleets to make changes in a scalable way. Fortunately, one company is making huge strides through a cost-effective hybrid solution. Range Energy offers fleets a viable option to comply with the regulatory mandates facing many areas of the country. (More on that in a moment…)
Today’s Businesses Face a Dynamic Regulatory Landscape
Impending regulations from the California Air Resources Board (CARB) are among the most strict in the country and include the mandate for all fleets operating within the ports of Los Angeles and Long Beach to be fully electric by 2035, with only zero-emission new vehicles to be purchased as of January 1, 2024. In New York, the state plans to enforce the Advanced Clean Trucks (ACT) rule, which will require manufacturers to sell more zero-emission commercial and heavy-duty trucks beginning in 2025. The EPA also plans to start enforcing new emissions standards for commercial vehicles beginning in 2027.
The rules will vary from state to state, and as more mandates are adopted, it will become increasingly difficult for fleets to maintain compliance across state lines. However, it will be imperative to identify ways to conform to these rules due to the hefty financial and operational repercussions if they do not. The risks range from fines and operating area restrictions to loss of business due to the inability to operate in certain regions or loss of respect from key partners who value environmental protection and compliance with these new standards.
Practical Supply Chain Decarbonization: 3 Challenges Fleets Face
The risks of non-compliance with new emissions mandates will be wide-ranging, making it imperative for companies to understand the challenges associated with supply chain decarbonization and make a plan for how to address them. The most notable challenges to consider are the costs, potential disruption in regular operations, and concerns about vehicle range and downtime spent charging.
High Costs of Full Electrification
When replacing diesel trucks with EVs, the upfront costs alone can make the transition cost-prohibitive. With each truck potentially costing up to $250,000 more per unit, the cost to replace a fleet can quickly become astronomical. Furthermore, fleets must ensure that they have the infrastructure in place to be able to charge and maintain the vehicles as needed, adding another layer of financial burden on top of an already expensive initial transition. As a result, many fleets may have difficulty justifying a complete shift to electric trucks.
Range Limit Anxiety and Increased Downtime
For fleets, time is money, and any downtime spent charging translates to a lack of pay. With estimated range limits of electric vehicles currently capping around 500 miles compared to as much as 2,000 miles or more for a diesel truck, fleets stand to spend hours per day waiting for an EV to charge — reducing the miles they can cover as a result.
Operational Disruptions
In addition to reducing the number of miles per day that drivers may be able to cover, operations teams must also ensure that the time spent waiting for an EV to charge is factored in when scheduling delivery dates. Routes must also be planned according to where charging stations are available based on the vehicle’s range, further complicating route planning and infrastructure requirements.
Range Energy: Your Ally for Practical Fleet Decarbonization
Range Energya manufacturer of electric trailers is looking to change the game regarding how fleets think about supply chain decarbonization. Founded by Ali Javidan, one of the earliest engineers at Tesla, and supported by industry-leading experts in electric heavy-duty vehicles, Range Energy understands the challenges that fleets are facing and has introduced an Electric Powered Trailer System (ePTS) that is designed to be bolted onto any existing commercial dry van or refrigerated trailer, allowing them to make practical and measurable strides today toward the reduction of emissions without the need to overhaul their existing operations.
The ePTS essentially transforms most tractor-trailers into hybrid units by using an EV powertrain that provides battery-powered propulsion and regenerative braking. This means that the tractor uses less fuel to pull the trailer, resulting in immediate fuel savings, along with reduced emissions and noise. Charging is also simple and requires lower charging speeds than EV tractors, which eliminates the need for expensive infrastructure upgrades. The ePTS can be charged during existing trailer dwell time, making the impact on asset utilization negligible.
Range Energy works with its customers to ease the process of electrification while achieving three key benefits:
Cost-Effective Solution
With the aforementioned expenses involved in fully electrifying an entire fleet, total electrification is out of the question for many companies. However, Range Energy’s ePTS bolts onto existing dry vans and reefer trailers, allowing companies to continue using their current equipment thanks to a simple add-on that takes minimal installation time. The ePTS boosts fuel efficiency and miles per gallon by up to 70% and reduces fuel costs by up to 40%, making decarbonization a financially viable option in which they can immediately realize savings without needing to make expensive updates or purchase EVs.
Scalable Sustainability
Thanks to the ability of the ePTS to be easily installed onto any dry van or reefer trailer, fleets can achieve fleet-wide adoption at their own pace, adding the technology to be used first in regions where emissions mandates exist before expanding utilization to their full fleets. It’s a practical choice and can be used across different trailer types, providing a scalable decarbonization option for fleets of various sizes.
The ePTS enables current trailers to be converted into hybrid units within a few hours using common tools and can be integrated into existing fleets without requiring significant changes to daily logistics operations.
Enhancing Driver Experience and Safety
If the benefits of decarbonization aren’t enough, the Range Energy ePTS doesn’t stop there. The technology also improves the driver experience by creating smoother acceleration, better stability, and regenerative braking. Furthermore, the system enhances safety by providing additional traction and braking control without altering the foundational safety systems already in place or requiring massive changes to how drivers operate.
Drivers love the ePTS and how it increases their overall uptime while enhancing safety. By creating a more comfortable and efficient driver experience, the ePTS is also helping its customers improve driver retention.
The Key to Fleet Electrification Lies Inside the Box, Not Outside of It
As companies face more strict regulatory requirements due to the need to move toward supply chain decarbonization, they will likewise need to rethink how to operationalize their compliance with these measures. While EV adoption has traditionally been viewed as the most effective (yet expensive) way to ensure they operate in line with new mandates, companies like Range Energy have learned that the real key to quick, scalable adoption requires thinking inside the box — enabling companies to comply with new regulations without overhauling their equipment and infrastructure or breaking their budgets.
Through the bolt-on nature of the Range Energy ePTS, any dry van or refrigerated trailer can be converted into a hybrid unit. Companies can gain immediate fuel savings by achieving greater efficiency without significantly impacting their daily operations. Furthermore, the enhanced safety of the hybrid units and improved driver experience help ensure that drivers remain safe, happy, and on the road as much as possible.
Interested in learning more about the Range Energy ePTS? Complete our pilot interest form, and a team member will contact you to schedule a demo.