Although electric trucks may be years away, a number of truck makers are coming out with hybrid mid-sized trucks that run on both diesel and electric power. And big rigs may be just around the corner.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
This past summer, the Port of Los Angeles saw an unusual sight—an electric truck ferrying containers from terminals to warehouses and rail yards. The truck, a prototype vehicle, was a short-haul drayage truck capable of pulling a 60,000-pound cargo container at a top speed of 40 miles an hour.
The experimental truck, which produces zero emissions, has been greeted with enthusiasm in California, which has adopted a number of regulations to improve air quality. "We could eliminate a lot of truck pollution in and around the port with a fleet of these workhorses," said Los Angeles Harbor Commission President S. David Freeman in a press release.
Testing of the prototype, which was manufactured by Balqon Corp. of Santa Ana, Calif., was still under way at press time. The port planned to put the truck into regular service to see how it would hold up under the daily stress of draying loads. However, early results have been sufficiently encouraging that the port has already decided to purchase five more of the vehicles, which go for about $208,000 apiece.
Given the high cost of diesel these days, the idea of using electric trucks has undeniable appeal. But no matter how well the prototype performs, battery-powered trucks will likely be limited to short-haul drayage applications, at least in the near term. Their range makes them impractical for extended highway use. When loaded, the prototype vehicle being tested in Los Angeles can go only 30 miles before needing a battery charge (Balqon says unloaded trucks can travel up to 60 miles without a recharge).
Although it's unlikely we'll see all-electric trucks tooling down America's highways anytime soon, a variation on the electric truck—the hybrid diesel electric—shows a great deal of promise. In the past year, a number of truck makers have begun production on mid-sized trucks with hybrid electric systems similar to what's used in automobiles. Although some question whether the technology will ever be a good fit for the biggest of the big rigs—Class 8 trucks—mid-sized trucks using hybrid technology are already starting to appear in dealer showrooms and even on the nation's highways.
All charged up
The hybrid trucks currently on the market use what's known as "parallel electric" technology—the same technology that powers passenger cars like the Toyota Prius. "You have an electric motor that works alongside an internal combustion engine," says David Alexander, an analyst at ABI Research of Oyster Bay, N.Y., who wrote a report on hybrid technology last year. "The electric motor provides a boost to the ... engine to take some of the load off and reduces consumption of fuel." These vehicles also save energy in stop-and-go driving through "regenerative braking," a technology that allows the vehicle to capture energy when the driver brakes and store that energy in a battery for reuse in restarting and low-speed operation.
Parallel electric technology is particularly well suited to trucks used in local delivery service. The vehicles' frequent stops and starts create plenty of opportunities to capture energy for the battery through braking. "Hybrid trucks work well in stop-and-go traffic," says Daniel Sperling, director of the Institute for Transportation Studies at the University of California at Davis. "You can get back the extra cost for a hybrid electric truck in a short time span."
Small vans using parallel electric technology—technically considered Class 4 and 5 trucks—have been around for five years. But recently, truck manufacturers have begun applying parallel electric technology to the larger Class 6 and 7 trucks as well. In Sweden, for instance, Volvo Trucks is currently running a pilot to test the technology on trucks designed for collecting trash.
Here in North America, Navistar International of Warrenville, Ill., started manufacturing hybrid Class 6 and 7 trucks a year ago. "At low speeds, the truck is powered by an electric engine," says Mark Johnson, the company's marketing manager. "At 25 miles an hour, the diesel engine kicks in."
At press time, Johnson said his company had sold 200 of these hybrid commercial trucks, which command a premium price compared to traditional vehicles. How much of a premium? Johnson says a traditional Class 6 or 7 truck goes for $45,000 to $60,000, depending on the specifications, while a hybrid unit costs somewhere between $80,000 and $90,000. He notes, however, that fuel savings help offset some of that price differential. "You'll see fuel savings between 30 and 40 percent," says Johnson. "At $4.50 for a gallon of diesel, the truck could pay for itself in three to four years."
Early this year, Freightliner of Portland, Ore., announced that it, too, was beginning production on a hybrid medium-duty truck—the M2 106, a Class 6 truck designed for hauling beverages. Although the company, which is part of Daimler Trucks North America LLC, declined to release sales or production numbers for the truck, David Bryant, Freightliner's vocational sales manager for hybrid vehicles, says he's seeing a lot of people "pulling the trigger on orders now."
Peterbilt Motors Co. of Denton, Texas, has also announced plans to begin making medium-duty dieselhybrid vehicles. A plant in Ste. Therese, Quebec, began production on both a Class 6 and a Class 7 hybrid truck this summer. The two models use a parallel hybrid system with an electric motor alongside a diesel engine. Peterbilt spokesman David Giroux says that a wine distributor in California has already placed an order for the hybrid diesel trucks, which it plans to begin using this fall.
Are Class 8s feasible?
Not content with building only mid-sized hybrid trucks, Peterbilt has plans to scale up hybrids to Class 8s, the largest trucks. The Texas truck maker is currently working with Wal-Mart Stores to develop a Class 8 prototype. After the tests with Wal-Mart are finished, Giroux says, his company will decide whether to take the Class 8 hybrid truck into production.
A number of industry experts are skeptical that over-the-road tractors pulling 80,000-pound loads can run successfully on parallel electric technology. "The concept of scaling up a Prius technology for a Class 8 truck is a nonstarter," says Alexander of ABI Research. "It's difficult for hybrids to work on Class 8 trucks because most of their operation involves cruising at 60 miles an hour or better."
In fact, Alexander says, it's more likely that with Class 8 trucks, truck manufacturers will end up using the hybrid technology to run ancillary systems like airconditioning units, cooling fans, or power steering, which now sap power from the engine. "It will not double fuel economy," he says. "But 5 percent here and 2 percent there add up."
Peterbilt spokesman Giroux acknowledges that adapting Class 8 trucks to use Prius-type technology presents some challenges. One of those is fuel efficiency. While mediumduty hybrids can expect fuelefficiency gains in the range of 30 to 60 percent, he says, gains for heavyduty hybrids would likely be only 7 to 15 percent. "In the medium-duty trucks, there's a payback because of the stop-and-go cycle," he says. "It's more difficult if you're traveling long distances because you're not stopping to regenerate the batteries."
At least one trucking expert believes we may yet see Class 8 hybrid trucks on the highways, though they'll most likely be used for regional transportation, moving loads from warehouses to retail stores, for example. As prices for big rig hybrids drop, companies may be able to justify the purchase of Class 8s used in local distribution, says Bill Van Amburg, a senior vice president at CalStart, a Pasadena, Calif.-based nonprofit organization that works with both the public and private sectors to develop advanced transportation technologies. "Hybrids will not take over Class 8 trucks," he says, "but it would be short-sighted to say it won't be a fit in the future."
More avenues to explore
Even if parallel electric technology proves impractical for heavy-duty trucks, Alexander says, truck manufacturers could try other approaches, such as "ultracapacitor" technology. Unlike batteries, which store energy in a chemical form, ultracapacitors store electric charges on plates. "It allows a lot of energy to be stored quickly and released quickly," says Alexander.
Another option would be to deploy what's known as a series electric system, which General Motors is using in the development of its Chevrolet Volt automobile. In that type of system, an electric motor runs the vehicle all the time, and a gasoline engine simply recharges the battery. But that's not an option for big trucks right now. "They need bigger batteries than are available today for this to work," says Alexander.
With the era of cheap oil apparently over, truck manufacturers will surely continue to experiment with technology and develop variations on hybrid trucks of all shapes and sizes. In the meantime, though, American truck manufacturers are gearing up for a surge in sales of medium-sized hybrid electric trucks. "We expect our sales to grow exponentially next year," says Johnson of Navistar International. "Customers are realizing that higher diesel prices are a long-term change, and they have to invest in their equipment to mitigate the increases in fuel prices."
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
“Unrelenting labor shortages and wage inflation, accompanied by increasing consumer demand, are driving rapid market adoption of autonomous technologies in manufacturing, warehousing, and logistics,” Seegrid CEO and President Joe Pajer said in a release. “This is particularly true in the area of palletized material flows; areas that are addressed by Seegrid’s autonomous tow tractors and lift trucks. This segment of the market is just now ‘coming into its own,’ and Seegrid is a clear leader.”
According to Pajer, Seegrid’s strength in the sector is due to several new technologies it has released in the past six months. They include: Sliding Scale Autonomy, which provides both flexibility and predictability in autonomous navigation and manipulation; Enhanced Pallet and Payload Detection, which enables reliable recognition and manipulation of a broad range of payloads; and the planned launch of its CR1 autonomous lift truck model later this year.
Seegrid’s CR1 unit offers a 15-foot lift height, 4,000-pound load capacity, and a top speed of 5 mph. In comparison, its existing autonomous lift truck model, the RS1, supports six-foot lift height, 3,500 pound capacity, and the same top speed.
The “series D” investment round was funded by existing lead investors Giant Eagle Incorporated and G2 Venture Partners, as well as smaller investments from other existing shareholders.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”