Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Shuttling trucks and trailers to warehouse doors is a noisy job, with the rumble of heavy diesel engines running as a backdrop to the occasional thump of container doors, loading ramps, and lift trucks.
But if recent automotive manufacturing trends continue, dock and yard operations may soon start to grow just a bit quieter. Steady advances in clean-power technology are opening a new front in the quest to optimize operations, as companies begin to replace their diesel-powered yard trucks with electric vehicle (EV) equivalents.
The shift to electric power for trucks of all types is still in its early days, so few facilities have converted their entire fleets over to electricity. One reason is cost. The upfront cost of a battery-powered over-the-road truck, for example, typically far outweighs the cost of one with an internal combustion engine. Although EV proponents say that premium can be offset by government rebates or recouped through fuel and maintenance savings, those benefits take time to accrue.
Another factor limiting the widespread adoption of electric trucks is range. For instance, battery-powered Class 8 trucks today have less than one-quarter the range of a diesel version, making them a poor fit for long-haul routes covering hundreds of miles. Although manufacturers could add extra batteries to extend that range, the added weight would reduce the vehicles’ payload capacity, reducing their benefit.
But the restrictions that have inhibited the deployment of electric trucks on long-haul routes don’t necessarily apply to vehicles that are used strictly for short-distance moves—vehicles many now see as a strong fit for dock and yard work.
HOME, HOME IN THE YARD
As for what makes them a strong fit, electric units offer a number of advantages. For one thing, yard trucks—also called terminal tractors, spotter trucks, or yard jockeys—often run 16 or 24 hours per day with fresh drivers behind the wheel for each shift. That extended use pattern means that the fuel savings add up quickly with electrics, a huge plus at a time when fossil fuel prices have gone through the roof.
And because they tow trailers and containers within the confines of a dock, yard, or intermodal facility, an electric yard truck never strays far from the electrical charging infrastructure needed to refresh its batteries, reducing the likelihood it will run out of juice and become stranded.
Penske ordered those vehicles fromOrange EV, a Kansas City, Missouri-based manufacturer of heavy-duty electric vehicles. In the right applications, Penske said, those EVs could deliver benefits such as zero tailpipe emissions, the ability to operate up to 24 hours on a single charge, and a 50% shorter stopping distance than standard trucks thanks to regenerative braking systems that use the vehicle’s momentum to recharge its batteries.
“Yard vehicles are a great opportunity for electrification,” says Patrick Watt, vice president for alternative vehicle and emerging technology at Penske Truck Leasing. “They have lower road speeds so they need less energy, they have proximity to charging equipment, and their performance allows drivers to operate in most circumstances,” an improvement over earlier EV models that lacked the strength to compete with diesel, he explains.
Those attributes also make battery-powered yard trucks a strong option for companies that are trying to cut greenhouse gas emissions and shrink their carbon footprint, Watt says. On top of that, these vehicles are ready for deployment right now, he adds. “We’re early in the transition to electric vehicles [in over-the-road applications], so we’re continuing to see advancement of the technology. It’s going to be a much better, more efficient vehicle in 10 years,” Watt says. “But for an electric yard tractor, the technology you see today will continue to be effective for a long, long time.”
Another reason Penske is investing in electric yard tractors is that the electric design has proved popular with yard workers, according to Watt. “We’ve gotten positive driver feedback,” he says, noting that drivers prefer quiet battery-powered models over “sitting in a diesel vehicle that’s idling loudly, [spewing] out emissions, and vibrating more [than] an electric truck. It’s similar to an electric golf cart; it’s a pleasant environment to sit in as you wait for your next shift.”
But even more important is the fact that electric yard trucks have shown to have high rates of uptime, proving resistant to mechanical breakdowns and requiring only short, frequent recharging sessions to keep their batteries powered up. “People think about running the battery cell all the way down and then charging it all the way back up, but with just 15 to 20 minutes of charge at every opportunity that’s a natural break [for the driver], you’ll never have to worry about running it down to zero,” Watt says. “That’s a change of mindset for people who are used to thinking about diesel in miles per gallon or in gallons per hour of operation.”
STAYING OUT OF THE REPAIR SHOP
Avoiding breakdowns and delays is a big selling point for electric yard trucks, agrees Zack Ruderman, vice president of sales and marketing at Orange EV, which currently has some 500 heavy-duty electric yard trucks operating in 130 fleets across 28 states, Canada, and the Caribbean. (The company recently expanded its yard truck rental program to include electric spotter vehicles in 48 states.)
“The market says that their biggest pain point is downtime [when trucks need repairs],” Ruderman explains. “To rent a replacement truck on short notice is expensive in this market. Keeping extra trucks on site is expensive too. But you need the uptime because [yard handling is] a mission-critical operation.”
To keep downtime to a minimum, Orange says its battery-powered trucks can be recharged when the driver is taking a break anyway. As Penske noted, that recharging time adds up fast over lunch periods and 15-minute breaks during shifts.
Additional uptime comes from avoiding long stays in the repair shop, Ruderman says. Orange EV claims that battery-powered trucks break down less than diesel models. Plus, they lack components like engine transmissions, emission control units, and radiators that are time-consuming (and costly) to maintain.
They’re also designed for versatility. Orange EV says its base model can do 70% of all the jobs a diesel model can do, falling short only for the 10% of jobs that involve steep hill grades and the 20% that demand high speeds. To fill those gaps, the manufacturer plans to launch a stronger “port truck” version with greater speed and power in 2023. “Within three years, more than 50% of new yard truck orders will be EVs. Yard trucks are leading the electrical transformation,” Ruderman says.
STAYING POWER
Ruderman may be right. Companies across the supply chain have been testing electric yard trucks in recent years, and they apparently like what they see. The result has been a rapid increase in production and sales of battery-powered trucks for dock and yard management duties.
Many of those users initially chose electric models for environmental reasons, such as greening up their operations or meeting corporate environmental, social, and governance (ESG) goals. But pilot tests have given them extra reasons to continue using electric yard trucks, as they have found additional benefits in fuel savings, extended uptime, and driver satisfaction.
As electric truck production reaches new levels of maturity, the sector is primed for quick growth in the coming years. And much of that growth will likely take place in an often-overlooked corner of the logistics sector, the trailer and container yard outside your local DC.
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.