The Impact of Converting to Electric Vehicle Freight Trucks on Operating Costs
In a recent study, logistics firm Ryder examined the economic impact of converting a fleet from internal combustion engine (ICE) trucks to electric vehicle (EV) freight trucks. This comprehensive analysis of 13,000 trucks of varying sizes revealed significant increases in operating costs associated with the switch to EVs. For light-duty EVs, the operating costs increased by up to 5%. However, the jump for heavy-duty trucks was much more pronounced, soaring between 94% to 114%.
Mixed fleets saw a rise in costs ranging from 56% to 67%.
Ryder’s study also indicated that the cost of goods might increase due to higher transportation costs, potentially adding 0.5% to 1% to overall inflation, which could impact the broader economy. This suggests a trickle-down effect where increased
logistics expenses could raise consumer prices.
The study’s geographic analysis focused on California and Georgia, states with varying electricity, fuel, and labor costs. This geographic breakdown aimed to
provide a comprehensive understanding of the economic impacts of electrifying a fleet. Ryder first calculated the costs for running individual trucks of different classes-light-duty vans, medium-duty straight trucks, and heavy-duty tractors.
These individual costs were then applied to a mixed fleet of 25 vehicles, reflecting the overall mix of commercial vehicles in the US.
The findings underscore the potential economic challenges and broader impacts on businesses and consumers from the transition to EV freight trucks. At TLC, we understand the complexities and financial implications of transitioning to an EV fleet. We are committed to providing strategic insights and cost-effective solutions to help our clients navigate this evolving landscape. Call us today to learn how we can support your logistics needs and sustainability goals.
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