Coming soon to a fleet near you: ultra-clean lifting machines
The EPA's stringent Tier 4 final emissions restrictions will apply to all diesel-powered lift trucks by the end of next year. How will the rules affect your fleet?
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
For those of us of a certain age, the word "diesel" evokes images of smelly, soot-spewing vehicles clogging highways and crawling around construction sites. Future generations, though, are unlikely to have those same associations. Thanks to stringent emissions control regulations issued by the U.S. Environmental Protection Agency (EPA), it won't be long before the exhaust from diesel engines is clean and clear.
Many people are familiar with those regulations as they apply to over-the-road trucks. But they also apply to diesel-powered "nonroad" vehicles, including the heavy-duty lift trucks typically used outdoors. The first level of emissions restrictions for diesel-powered lift trucks—designated Tier 1—went into effect in 1997. Over the next decade, Tier 2 and Tier 3 as well as Tier 4 interim rules were introduced.
But even stricter standards are looming. The next iteration, the Tier 4 final standards, mandate that harmful emissions from diesel-powered lift trucks be reduced by more than 90 percent compared with emissions levels before the regulations were first imposed.
Here's a look at what those rules require, how manufacturers are responding, and what they will mean for fleet operators.
RULES OF THE NONROAD
The main components of vehicle emissions are particulate matter (PM), nitrogen oxides (NOx), hydrocarbons (HC), and carbon monoxide (CO). Of these, only PM (soot, or "black smoke") and NOx are currently regulated by the EPA, according to J.B. Mayes, manager, counterbalanced product management for the Hyster Co.
Tier 4 interim regulations require that diesel engine manufacturers reduce PM exhaust emissions by 96 percent and NOx emissions by 76 percent compared with the Tier 1 standards, Mayes says. The Tier 4 final regulations reduce NOx emissions by 94 percent compared with the Tier 1 standards.
That last mandate, as they say, is a doozy: According to the lift truck manufacturers we spoke to for this article, moving from Tier 4 interim to Tier 4 final compliance will be difficult and expensive. "The EPA's objective is that whatever we shoot out of the exhaust should be cleaner than what we take in," says Tim Webb, manager, product development for Hyundai Construction Equipment Americas Inc. "Everybody can get to that, but the problem will be the components and the cost for modification of the diesel engine."
Compliance deadlines are keyed to engine output in kilowatts (also expressed as horsepower). For lift trucks rated up to 75 hp, the Tier 4 final standards went into effect Jan. 1, 2013. The deadline for engines rated between 174 and 750 hp is Jan. 1, 2014, and for those between 75 and 173 hp, the deadline is Jan. 1, 2015. Only engines manufactured on or after those dates are affected.
DESIGN CHALLENGES
For lift truck manufacturers, the challenge is to redesign their products to comply with the regulations but without compromising fuel efficiency, performance, or durability.
Most of the lift truck makers are partnering with engine manufacturers such as Cummins, Perkins, Kubota, and Deutz. (A notable exception is Toyota, which is producing its own Tier 4 final engine.) The engine manufacturers are using a variety of technologies to meet emissions requirements. The most common include:
Selective catalytic reduction (SCR) systems, which break down NOx into nitrogen and oxygen by mixing a reagent (called diesel exhaust fluid, or DEF) into the exhaust gas flow in a catalytic converter.
Exhaust gas recirculation (EGR), which dilutes the oxygen in the combustion chamber, lowering the combustion peak temperature and reducing the formation of NOx. The lower temperature increases particulate matter, which must be filtered out.
Diesel particulate filters (DPF), which trap particulate matter from the exhaust and burn it off to prevent soot from being released into the air.
Diesel oxidation catalysts (DOC), which convert carbon monoxide and hydrocarbons to water vapor and carbon dioxide.
Turbochargers, which help small, lower-emission engines generate more horsepower.
Each lift truck manufacturer must decide which combination of technologies will work best with its models and the applications for which they were designed. Hyundai, for example, will use diesel particulate filters in its 1.5- to 3.3-ton trucks and a diesel oxidation catalyst/selective catalytic reduction combination for larger trucks. Mitsubishi Caterpillar Forklift America Inc. (MCFA) chose diesel particulate filters for its Cat lift trucks and Mitsubishi forklift trucks lines. For its largest trucks, Hyster will use exhaust gas recirculation with a diesel particulate filter. Toyota's 8-Series trucks feature a new electronic common-rail fuel injection system that works with an intercooled turbocharger and a diesel oxidation catalyst. And Crown Equipment's Hamech V811 Series trucks are equipped with a diesel oxidation catalyst system. (See sidebar for a list of some of the Tier 4 models that are now available or will be shortly.)
The regulations have created some design challenges for lift truck manufacturers, says Jason Provancher, director of IC (internal combustion) product development and engineering at Crown Equipment Corp., which makes diesel-powered lift trucks under its Hamech brand. Components like the canister-shaped diesel particulate filters and the containers required to hold and burn oxidation catalysts take up space inside a truck, and it can be difficult to make room for them in a small lift truck, he notes. Manufacturers may also have to redesign the inner workings and exterior cowlings and panels to accommodate changes in the size and positioning of exhaust pipes, hoses, cables, and other components, says Lucas Dumdie, a product line manager at MCFA.
Another concern is the effect of overheating on the combustion process and the changes in emissions levels this can bring. Toyota, for one, has introduced an improved cooling system with the ability to reduce power usage automatically to help prevent overheating and maintain the proper emissions levels, according to Mark Faiman, a product manager for Toyota Material Handling, U.S.A., Inc. (TMHU).
Typically, operators must stop the truck and wait while accumulated particulates burn off. That's a productivity-buster, says Dumdie. So some manufacturers have found ways to carry out that process while the truck is running, without overheating. The Perkins-built engines in Mitsubishi's and Cat's Tier 4 final trucks, for example, heat up the DPF and automatically burn off soot while the vehicle is in operation.
Diesel lift trucks are designed for heavy-duty applications, so manufacturers that opt for smaller engines (which use less fuel and therefore, produce lower emissions) can't compromise power or lifting capacity. Toyota addressed that by incorporating a new electronic common-rail fuel injection system and an intercooled turbocharger into its fuel-sipping four-cylinder engine. Thanks to these and other design changes, the new model provides greater torque and as much horsepower as the previous inline six-cylinder engine, says Cesar Jimenez, TMHU's national product planning manager.
Fuel and lubricating oil are another consideration with Tier 4-compliant engines. Because sulfur can severely damage catalytic converters, low-emissions engines require ultra-low-sulfur diesel (ULSD) fuel, Provancher says. Although ULSD is in wide use, it may not be readily available everywhere lift truck fleets operate, he observes.
As for engine oil, because the emissions control systems generate more heat and the ash residue left when lube oil burns off during combustion can foul particulate filters, CJ-4 lubricant is recommended for engines using DPF and EGR systems, says Webb. "CJ-4 is more resistant to heat and produces less ash," he explains, which in most cases prolongs the interval between cleanings.
BUYERS BE AWARE
Initial purchase prices for Tier 4 final lift trucks will be higher than those for their Tier 3 predecessors. That's not surprising considering the additional costs engine and lift truck makers have incurred over the past decade, Provancher says. It's too early to say what Tier 4 final pricing could or should be over the long term, he continues, "but realistically, there's a good substitute with LPG (liquefied petroleum gas), and the market is only going to bear so much when it comes to purchase price." In the short term, there will be opportunities to buy less-expensive, lower-tier trucks, but he expects that supply will dry up in about a year.
Lift truck makers counter that the fuel savings from their Tier 4 final models compared with their previous models should offset the higher prices. Hyundai and Hyster, for instance, expect to boost average fuel efficiency by 10 percent and 15 percent, respectively, in the models they've scheduled for rollout. Mitsubishi and Cat, meanwhile, have both achieved a 22-percent improvement in fuel consumption. But Toyota may be the champion when it comes to fuel savings: The company is citing a 30-percent average reduction in fuel consumption for its 8-Series diesel trucks compared with the previous model.
Those improvements are due not only to hotter-burning, more efficient engines, but also to manufacturers' concerted efforts to cut fuel consumption—and thus, the total cost of ownership—through such innovations as regenerative braking, automatic engine shut-off, idle management, and on-demand hydraulic, cooling, and power steering. But there could be hidden costs. Engines that use selective catalytic reduction technology require a reagent called diesel exhaust fluid (DEF) that is approximately one-third urea and two-thirds water. "Trucks utilizing this technology require separate DEF tanks and regular fill-ups, creating additional costs for the user," Mayes notes.
Maintenance costs should not be much higher, according to the lift truck makers. Depending on the type of emissions equipment, infrequent or even no cleaning (in the case of DOC systems) will be required. Some diesel particulate filters, for instance, could go 4,000 hours or more before they need cleaning. But the Tier 4 final engines are highly electronic and thus "more complex than the diesel engines of yore," says MCFA's Dumdie. "As a result, they are a lot different to troubleshoot."
There's speculation that the advent of ultra-clean diesel engines could cause a shift in the lift truck market. For one thing, when pricing eventually comes down, there may not be as big a cost difference between electric and IC trucks as there is now, Webb suggests. "I think we'll see a more level playing field for the initial cost of a truck, battery, and charger versus the initial cost of a diesel truck."
The Tier 4 final engines, moreover, will be clean enough to use indoors in some areas, making them appropriate for at least a few applications where they've long been barred. Diesels could also become more attractive in California, where the California Air Resources Board (CARB) has imposed fleetwide emissions limits. Instead of having to replace older trucks with electrics or other power sources to keep a fleet's total emissions below the applicable limits, Toyota's Faiman says, buyers could purchase the powerful diesels they want and still be in compliance with the regulations.
That situation could soon spread to other states. The EPA has delayed approving CARB's diesel emissions rules for now, Faiman says, but if and when it does, other states with strict air-quality-attainment goals could follow California's lead and adopt fleet emissions averaging, too.
Where to learn more
There are many information resources available that explain the complex emissions control regulations for lift trucks. Here are some we found helpful:
The U.S. Environmental Protection Agency Emission Standards Reference Guide for compression-ignited nonroad vehicles provides an overview and includes links to the regulations for lift trucks.
The California Air Resources Board's "Diesel Programs and Activities" page includes everything you need to know about California's emissions restrictions.
Hyster's "2011 Tier 4 interim/Stage IIIB Emissions Standards" white paper explains and compares the different emissions control methods.
Tier 4 final lift trucks
Every manufacturer of diesel-powered lift trucks is working to develop models that comply with the Environmental Protection Agency's Tier 4 final emissions control regulations. Here's a quick look at some that are already on the market or will be very shortly.
Cat Lift Trucks says its DP40N1 and DP55N1 series of 8,000- to 12,000-pound capacity diesel pneumatic-tire lift trucks provide a 21.6-percent increase in fuel efficiency. The diesel particulate filter (DPF) will automatically regenerate, and the Perkins 854F engine will not require any ash service.
Crown Equipment'sHamech V811 Series pneumatic-tire forklift offers lifting capacities of up to 11,000 pounds for a variety of outdoor applications. Its Deutz TD 3.6-liter engine is equipped with a diesel oxidation catalyst (DOC) exhaust system that is maintenance-free and does not require periodic service.
The first of Hyundai's extensive line of Tier 4 final lift trucks will be available in the fourth quarter of 2013; the others will debut in 2014 and 2015. Trucks of up to 3.3 tons will use a diesel particulate filter (DPF) system. Larger vehicles will use a diesel oxidation catalyst (DOC) and selective catalytic reduction (SCR) system.
Hyster's H80-120FT Series of Tier 4 final lift trucks will feature an efficient Kubota 3.8-liter engine with exhaust gas recirculation and a diesel particulate filter. The pneumatic-tire forklifts will handle the toughest duty with lifting capacities ranging from 8,000 to 12,000 pounds.
Mitsubishi Forklift Trucks' FD40N1-FD55N1 series of 8,000- to 12,000-pound capacity diesel pneumatic-tire forklifts provide a 21.6-percent increase in fuel efficiency. The diesel particulate filter (DPF) on the Perkins 854F engine does not require any ash service and automatically regenerates during normal operation.
Toyota Industrial Equipment's 8-Series pneumatic-tire trucks handle loads of 8,000 to 17,500 pounds and feature a Toyota-built four-cylinder engine with a diesel oxidation catalyst, an electronic common-rail fuel-injection system, and an intercooled turbocharger. The 8-Series offers on average 30-percent lower fuel usage with as much horsepower and greater torque than its six-cylinder predecessor.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."