The Long-Haul Towards Electrifying the Supply Chain

Supply chains leverage long-haul truckers to get products expediently across nations. These heavy, fossil-fuel-powered feats of engineering must be on their way to electrification faster than ever.

Consumer expectations and demand are rising, increasing load weight and delaying deliverable deadlines. These pressures burden sustainability leaders in industrial sectors as carbon footprints challenge global and corporate goals. Electrification presents a potential solution for delays and obstacles for industrial fleets.

What Sustainable Infrastructure Do Supply Chains Need?

Large trucks and commercial vehicles require infrastructure to support their new designs and fuel needs. The primary motivation behind electrification is sustainability, so the construction and implementation of electrified infrastructure is the longest haul and most intimidating upfront cost.

Supply chain fleets need these installations to thrive in a decarbonized world:

• Charging stations
• Compatible transformers
• Qualified dealerships or repair shops
• Switchgears
• Warehousing for replacement parts

The inevitable cost reduction of using electric vans and trucks becomes apparent once resources are in place, and consistent use provides adequate data. Unfortunately, that waiting game is tempting industry professionals to put off prioritizing electrifying fleets when they could have already been experiencing the benefits of already established infrastructure.

Infrastructure serves a practical purpose alongside providing peace of mind to sustainable industry leaders. For example, more fast-charging stations eliminate charging anxiety, and reduce stress for logistics and travel planners. Adequate transformers and switchgear allow regions to handle electrified infrastructure to prevent outages and keep services operational — especially while adapting to the pressures of climate crises.

READ: Decarbonizing Supply Chains in Oilfield Services & Equipment (OFSE)

Is There Enough Infrastructure to Go Around?

Knowing what electric fleets need is separate from their reliability and cost-effectiveness. Small supply chains or growing businesses need to secure funding, and large corporations must justify it within their travel and environmental budgets. More expensive fleets and infrastructure impact supply chain bottom lines and truckers’ pockets. If companies must allocate more to electrification, will that impact worker wages?

With Volvo and other makers entering the scene, saturation will likely ease the burden of demand and pricing. Prospective costs at the moment are daunting, with an almost certainty to go down in coming years. Freightliner may charge $300,000 while Tesla charges around $180,000 per unit, but priorities rest with payload size, battery capacity, and availability.

EV technology for commercial fleets is improving, which may also mitigate prices. Companies are seeking ways to reduce the cost of expensive batteries with new compositions requiring fewer rare materials. They also want to improve electric motors, electronics, and complementary tech to improve control, efficiency, and energy consumption. To make these significant investments viable for companies, they must promise durability for the unique conditions these vehicles experience. 

Infrastructure is the primary concern of long-haul drivers, who drive mostly on highways for weeks. Interstates lack charging stations, and areas that do have chargers do so at a slow rate. Parking is limited too. National efforts must increase to disperse fast-charging stations evenly at truck stops and rest areas to provide peace of mind to supply chain workers.

How Is Legislation Helping?

Insufficient and vague regulatory action is another reason electrifying supply chains is taking so long. In 2021, transportation accounted for 29% of emissions in the U.S., and 23% of that was because of medium- and heavy-duty trucks. Executives must take this next phase of environmental action seriously and quickly. However, with the inconsistent availability of vehicular and labor resources, kickstarting efforts this second may not be feasible.

Industry workers want to make the shift. They want cleaner air and more efficient transport systems for the future. Drivers tend to enjoy electric trucks once they experience them. Despite these factors, many fear their employers or contractors will be in a position to transition when they cannot, jeopardizing their stability. These reservations are an insight into the gaps in legislation — fleet workers would not fear electrification if they knew there were sound systems in place preparing them.

Everything funded by legislation in the United States is currently in motion. The Biden-Harris Administration allocated $7.5 billion to EV charging, $10 billion to green transportation systems, and $7 billion in components, materials and batteries. Time will reveal if companies were able to accomplish demands with the gifted funds. Here are some examples of how federal entities push electrification:

• Spanish-based company Wallbox will provide 250,000 chargers and energy management devices.
• FreeWire will create 200 jobs for charging research and development.
• ChargerHelp! and SAE International are creating the Certified Electric Vehicle Service Equipment Maintenance Technician certification to train over 3,000 trainees regardless of income.
• Qmerit will provide additional EV training, build chargers and focus on diversity, inclusion, and equity in the electrification workforce.

READ: Electrifying Oilfield Operations to Reduce Emissions at BPX

What About the Pressure on Car Manufacturers?

Supply chains need electric infrastructure and legislative help, relying on car makers to pump out as many big rigs and supplementary technologies as they order. Industry forerunner Tesla is already struggling to keep up with demand for their semi, with multiple delays in production becoming their trademark. They strive to produce 50,000 units annually in 2024, but makers will only determine if they can meet targets later.

Additionally, car manufacturers understand every corporate sale equals added maintenance and labor questions that require specialized training for their technicians. Developing these programs requires time and testing while orders stack up. Car manufacturers must view these as growth opportunities for electrification instead of excuses.

Although electrified fleets should require less maintenance than traditional diesel engines, it’s still a burden makers must race to keep up with and maintain competitive relevance. If manufacturers cannot produce enough electric trucks, many supply chains will rely on diesel out of necessity or frustration from waiting.

Why Electric Supply Chains Are Taking So Long

The world has EV technology, but translating that to commercial fleets is challenging. Questions about reducing charging anxiety, improving trip distances and lowering battery weight need answers before widespread adoption. Governments and truckers will work with car makers to decarbonize medium- and large-haul transportation so supply chains can achieve their sustainability goals.