CHECKINGIN
How ESG Policy Impacts Truckers
Vol. 44, No. 9 September 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
H ow do ESG mandates impact trucking? Let’s take a look at some examples. Leading global transportation and logistics player DSV, with headquarters in Denmark, just ordered 300 electric vehicles from Volvo Trucks. If those trucks get the job done, DSV plans to order 2,000 more, making those EVs 10% of the 20,000 total DSV fleet on the road today. Volvo redesigned its new trucks for aerodynamics and they are reputed to be the most efficient tractor trailers
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
Merrill Douglas Tom Gresham Karen M. Kroll Gary Wollenhaupt
CONTRIBUTING EDITORS
Keith Biondo, Publisher
manufactured today. If DSV places that order, it will operate the largest electric trucking fleet in the EU and Volvo will have 4,000+ electric semi- trucks on the road, logging millions of ESG shipment miles. There is interesting electric vehicle news on this side of the pond too. Pitt Ohio, an Inbound Logistics 2024 Top 100 Trucker, has added 10 Mack MD Electric trucks to its fleet. The Mack MD has 230 miles of range and can reportedly fast charge to 80% in about two hours using a fast charger. “We believe the Mack MD will provide the best range and payload from a value standpoint,” says Taki Darakos, vice president of vehicle maintenance and fleet services at Pitt Ohio. “We are excited that the current capabilities should be able to mimic 85% of our conventional box truck fleet in terms of range and payload.” Those 10 green semis compose only a fraction of the Pitt Ohio fleet, but it is a way for the trucker to explore the viability and reality of shifting over-the- road transportation operations to electric trucks. Other carriers responding to our Trucking Perspectives market research report ( see page 38 ) cite government policies, regulations, and compliance as one of their greatest challenges—specifically sustainability requirements (26%). The challenge of considering electric vehicles troubled 19% of respondents. Besides environmental motivations, there is legitimate concern about the long-term availability of diesel for ICE tractor trailer fleets. And consider that the high cost of EVs will impact a major portion of U.S. lift—owner operators. Will OOs ever be able to afford an EV semi? Compliance requirements and CO2 savings come at a significant cost. A semi truck, including its cargo, can legally weigh a maximum of 80,000 pounds, while a battery for an electric truck can weigh up to 16,000 pounds, according to a recent CNBC report. Put another way, that’s nearly one-quarter of the truck’s total weight. Less CO2 and more green compliance that sacrifices critical weight for heavy batteries reduces slim margins for U.S. carriers and owner operators even more.
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4 Inbound Logistics • September 2024
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