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As fleet electrification becomes a trend, what other setbacks do zero-emission trucks need to overcome?

Release time:

2023-03-03 17:37

Electric vehicles are reaching new heights and even breaking into supply chain operations. However, while electrifying long-haul truck fleets brings considerable environmental benefits, it proves to be a challenging task. Teams must find ways to overcome these barriers and embrace sustainability.

Zero-emission trucks are still relatively new, so some challenges come naturally. Still, overcoming these obstacles becomes even more important as climate change becomes more severe. Here are five of those setbacks and how the team is addressing them.

1. Limited scope

A common challenge with fleet electrification is the limited range of these vehicles. For example, Volvo's new FH Electric has a maximum range of around 300 kilometres and a gross fixed weight (GCWR) of 44 tonnes. This is impressive for an electric car, but a diesel FH with the same GCWR can travel 1,000 km between gas stations.

The range of electric vehicles has improved a lot over the past few years, but they still can't compete with traditional long-haul trucks. This can be a challenge for fleets, as fewer stops are critical for timely delivery and customer satisfaction.

As a result, today's fleet electrification is best suited for last-mile deliveries rather than long-distance driving. While any improvements are respectable, fleets must eventually be fully electrified to mitigate climate change.

2. The challenge of route optimization

Charging stations are another obstacle to fleet electrification. Diesel pumps are more prevalent than charging stations, which is a problem that limits the range of electric vehicles. Since these vehicles have to stop more often, but their parking options are less common, planning an efficient route is challenging.

There are nearly 43,000 public charging stations in the United States, which are unevenly distributed. California's numbers are almost the same as the other 39 states combined. Designing a route where trucks can be efficiently delivered and parked at one of these stops requires extensive planning.

Charging stations will increase, but the process can be slow. Fast chargers cost up to $100,000 to install, making many charging stations reluctant to use them.

3. Electric trucks are in short supply

Not so long ago, electric trucks were rare, often more of a proof of concept than a reality. While the market for these vehicles has expanded, fleets still struggle to acquire them. Automakers don't produce many electric trucks, and high demand from green-looking companies exacerbates the problem.

It is encouraging that many logistics companies are already ordering electric vehicles in large quantities. However, this has led to a backlog of many EV manufacturers, making it difficult for these companies to scale up or for other companies to acquire these trucks.

Bottlenecks in the EV battery supply chain further complicate matters. Experts expect demand for lithium-ion batteries to grow tenfold by 2030, and the raw materials used to make these batteries will be in short supply. Many automakers will also prioritize electric vehicles, delaying shipments of electric trucks.

4. High upfront costs

While some companies enthusiastically embraced fleet electrification, others were concerned about costs. Electric trucks have a higher upfront cost than diesel trucks. For example, a 500-mile Tesla semi-truck costs $180,000, while fossil fuel alternatives sell for an average of $117,430.

With fewer moving parts, electric vehicles require less maintenance than conventional vehicles. Over time, this could help compensate for fares that electrify fleets. Still, high initial fees may discourage small companies from adopting zero-emission vehicles.

As electric vehicle technology advances, these vehicles will become more affordable. For now, though, their high prices make them unavailable to many small logistics companies.

5. Unfamiliarity

Finally, many companies may be hesitant to embrace fleet electrification because of their hesitation about their novelty. This phenomenon occurs in almost any technology in the business sector. Companies are often slow to adopt new processes or resources because they are not familiar with them and fear that this could lead to disruptions.

These fears are not entirely unfounded. As with any new technology, switching to an electric car comes with some initial disruptions. Fleet managers must approach route planning differently, maintenance schedules must change, and drivers may have to consider different factors.

If a company has been doing things one way for years, it will be difficult to switch to another. Even if statistics show how electrification has multiple long-term advantages, overcoming this psychological barrier can be challenging.