It’s time. Time to, at the very least, dip your toe in the battery electric vehicle (BEV) pool. There are several reasons you should do so. For one thing, trucks are available to order. For another there are several cities and states setting up targets for the percentage of vehicles that need to produce zero emissions. And we are learning more and more each day about which applications make the most sense for BEVs.
In NACFE’s first Bootcamp Training, What’s Driving Electric Trucks, we learned that there is an increase in model availability of BEVs, political momentum is on the side of BEVs, costs of both vehicles and batteries continues for fall and the needed charging infrastructure is being built out.
During the Bootcamp, we learned that there are potential benefits for fleets who move to BEVs. These include increased uptime, lower operating costs, improved corporate image, reduced maintenance, reduced number of components, reduced noise and vibration, improved driver retention, meeting environmental requirements and increased efficiency and productivity.
That’s a lot of benefits, but I need to be clear that at this point in their development BEVs are not right for every application. But I think you can say that about any new technology. Here’s where BEVs do make sense: in applications of less than 200 miles, where freight cubes out, ones with stop-start duty cycles, and ones where trucks return home every night.
We at NACFE understand that trucks are business tools and so there needs to be a return on investment, and today without incentives that might not be possible. But we also believe that we will continue to see improvements in the vehicles themselves and in the uptick in purchases. As more people try BEVs, prices should come down.
If your duty cycle fits the one mentioned above, at least stick your toe in and bring a BEV or two into your operation soon so that you can see how they perform. It is important to note that we are moving away from prototype or pilot BEVs into full production, so you better not wait too long.
Come on in, the water is fine.
Michael Roeth has worked in the commercial vehicle industry for nearly 30 years, most recently as executive director of the North American Council for Freight Efficiency. He currently serves on the second National Academy of Sciences Committee on Technologies and Approaches for Reducing the Fuel Consumption of Medium and Heavy-Duty Vehicles and has held various positions in engineering, quality, sales and plant management with Navistar and Behr/Cummins.
It seems like we are seeing a migration of fleets from vehicle ownership to leasing. At least that seems to be the case for private fleets, according to the National Private Truck Council’s (NPTC) Benchmarking Survey Report 2020.
The report found that in 2020, “35% of the fleets reported owning the majority of their heavy-duty power equipment, compared to 47% that so reported last year and 40% the year before.” In addition, 33% of the fleets reported leasing all or a majority of their heavy-duty units, up significantly from the total of 20% reported last year and the 23% two years ago. The balance of the fleets, according to the NPTC survey, reported using a combination of ownership and leasing for their heavy-duty vehicles.
Another detail of the survey is that fleets that leased trucks—and in many cases trailers, too—were more likely to outsource the maintenance of those trucks. NPTC said that was done by a factor greater than 2:1. Here is the really interesting finding: Fleets that preferred leasing and outsourced their maintenance, had a lower breakdown percentage compared to fleets that owned their assets and were more likely to perform their own maintenance. Think about that.
Whether you are a private fleet or a for-hire carrier, now might be a good time to consider leasing. Vehicle technology is changing at a dizzying pace, and leasing lets fleets run newer equipment which tends to be more fuel efficient and have more safety-related equipment. Full-service leasing also takes the burden of vehicle maintenance and repair from the fleet. Given the technician shortage this can be a big help to fleets.
Leasing can lead to operational cost savings, and it takes the guesswork out of determining what your monthly operating costs will be. Leasing can also protect you from the vagaries of the used truck market.
Leasing is also a good way to test new technology in your fleet. This will become increasingly important as we continue to see developments in the electric truck space because it will allow fleets to see how electric-powered trucks perform in their operation without having to make a long-term commitment.
Many private fleets have recognized the value of leasing. In fact, 56% of the Class 8 vehicle population is leased while 44% is owned, according to the NPTC survey. The association called this “a stunning reversal over last year.”
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June 02, 2021 at 09:23PM
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Jumping into the electric vehicle pool | FleetOwner - Fleet Owner
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