AlleyCat
2024-05-10 02:26:33 UTC
New Analysis Shows Just How Bad Electric Trucks Are For Business
Converting America's medium- and heavy-duty trucks to electric vehicles (EV) in
accordance with goals from the Biden administration would add massive costs to
commercial trucking, according to a new analysis released Wednesday.
The cost to switch over to light-duty EVs like a transit van would equate to a
5% increase in costs per year while switching over medium- and heavy-duty
trucks would add up to 114% in costs per year to already struggling businesses,
according to a report from transportation and logistics company Ryder Systems.
The Biden administration, in an effort to facilitate a transition to EVs,
finalized new emission standards in March that would require a huge number of
heavy-duty vehicles to be electric or zero-emission by 2032 and has created a
plan to roll out charging infrastructure across the country. (RELATED: Budget
Airline Posts Huge Loss After Biden Admin Tanks Merger)
"There are specific applications where EV adoption makes sense today, but the
use cases are still limited," Karen Jones, executive vice president at Ryder,
said in an accompanying press release. "Yet we're facing regulations aimed at
accelerating broader EV adoption when the technology and infrastructure are
still developing. Until the gap in TCT for heavier-duty vehicles is narrowed or
closed, we cannot expect many companies to make the transition, and, if
required to convert in today's market, we face more supply chain disruptions,
transportation cost increases, and additional inflationary pressure."
Due to the increase in costs for businesses, the potential inflationary impact
on the entire economy per year is between 0.5% and 1%, according to the report.
Inflation is already elevated, measuring 3.5% year-over-year in March, far from
the Federal Reserve's 2% target.
Increased expense projections differ by state, with class 8 heavy-duty trucks
costing 94% more per year in California compared to traditional trucks, due
largely to a 501% increase in equipment costs, while cost savings on fuel only
amounted to 52%. In Georgia, costs would be 114% higher due to higher equipment
costs, labor costs, a smaller payload capacity and more.
The EPA also recently finalized rules mandating that 67% of all light-duty
vehicles sold after 2032 be electric or hybrid. Around $1 billion from the
Inflation Reduction Act has already been designated to be used by subnational
governments in the U.S. to replace some heavy-duty vehicles with EVs, like
delivery trucks or school buses.
The Biden administration has also had trouble expanding EV charging
infrastructure across the country, despite allotting $7.5 billion for chargers
in 2021. Current charging infrastructure frequently has issues operating
properly, adding to fears of "range anxiety," where EV owners worry they will
become stranded without a charger.
=====
May:
"Patagonia Is Absolutely Buried"
Rare Snow Blankets Chile's Capital
Snowbird, Utah Surpasses 600 Inches
Alaska's Near-Record Snow Season Also Means "Big Fire Danger"
Australia Shivers
Spring Snow Continues To Build On Europe's Mountains As Winter's Cold Lingers
Mongolia's Snowiest Winter Since 1975
Much Of Russia Returned To Winter
Heavy Snow Hits Argentina A Month Early
Spain Chills
"Best May Powder Days In Memory" At Palisades
Cold Antarctic Coast
Heavy May Snow Hits the Sierra Nevada
Concordia Below -70C (-94F) for 10-Days
Cooling In The Tropical Pacific
Vostok's Coldest April Since 1999
Global Temperature Expected To Fall In May
Tonga Eruption Responsible For Toasty 2023 (nyah nyah!)
Missing Spring In Jackson, WY
Cool Summer Forecast For Much Of The Northern Hemisphere
Record May Cold Sweeps India
Rare April Cold Hits Antarctica (-112F)
Heavy Spring Snow Traps 1,000 Vehicles In Northern India
Wild Swings In New Jersey
The Wind Didn't Blow As Hard In 2023
Converting America's medium- and heavy-duty trucks to electric vehicles (EV) in
accordance with goals from the Biden administration would add massive costs to
commercial trucking, according to a new analysis released Wednesday.
The cost to switch over to light-duty EVs like a transit van would equate to a
5% increase in costs per year while switching over medium- and heavy-duty
trucks would add up to 114% in costs per year to already struggling businesses,
according to a report from transportation and logistics company Ryder Systems.
The Biden administration, in an effort to facilitate a transition to EVs,
finalized new emission standards in March that would require a huge number of
heavy-duty vehicles to be electric or zero-emission by 2032 and has created a
plan to roll out charging infrastructure across the country. (RELATED: Budget
Airline Posts Huge Loss After Biden Admin Tanks Merger)
"There are specific applications where EV adoption makes sense today, but the
use cases are still limited," Karen Jones, executive vice president at Ryder,
said in an accompanying press release. "Yet we're facing regulations aimed at
accelerating broader EV adoption when the technology and infrastructure are
still developing. Until the gap in TCT for heavier-duty vehicles is narrowed or
closed, we cannot expect many companies to make the transition, and, if
required to convert in today's market, we face more supply chain disruptions,
transportation cost increases, and additional inflationary pressure."
Due to the increase in costs for businesses, the potential inflationary impact
on the entire economy per year is between 0.5% and 1%, according to the report.
Inflation is already elevated, measuring 3.5% year-over-year in March, far from
the Federal Reserve's 2% target.
Increased expense projections differ by state, with class 8 heavy-duty trucks
costing 94% more per year in California compared to traditional trucks, due
largely to a 501% increase in equipment costs, while cost savings on fuel only
amounted to 52%. In Georgia, costs would be 114% higher due to higher equipment
costs, labor costs, a smaller payload capacity and more.
The EPA also recently finalized rules mandating that 67% of all light-duty
vehicles sold after 2032 be electric or hybrid. Around $1 billion from the
Inflation Reduction Act has already been designated to be used by subnational
governments in the U.S. to replace some heavy-duty vehicles with EVs, like
delivery trucks or school buses.
The Biden administration has also had trouble expanding EV charging
infrastructure across the country, despite allotting $7.5 billion for chargers
in 2021. Current charging infrastructure frequently has issues operating
properly, adding to fears of "range anxiety," where EV owners worry they will
become stranded without a charger.
=====
May:
"Patagonia Is Absolutely Buried"
Rare Snow Blankets Chile's Capital
Snowbird, Utah Surpasses 600 Inches
Alaska's Near-Record Snow Season Also Means "Big Fire Danger"
Australia Shivers
Spring Snow Continues To Build On Europe's Mountains As Winter's Cold Lingers
Mongolia's Snowiest Winter Since 1975
Much Of Russia Returned To Winter
Heavy Snow Hits Argentina A Month Early
Spain Chills
"Best May Powder Days In Memory" At Palisades
Cold Antarctic Coast
Heavy May Snow Hits the Sierra Nevada
Concordia Below -70C (-94F) for 10-Days
Cooling In The Tropical Pacific
Vostok's Coldest April Since 1999
Global Temperature Expected To Fall In May
Tonga Eruption Responsible For Toasty 2023 (nyah nyah!)
Missing Spring In Jackson, WY
Cool Summer Forecast For Much Of The Northern Hemisphere
Record May Cold Sweeps India
Rare April Cold Hits Antarctica (-112F)
Heavy Spring Snow Traps 1,000 Vehicles In Northern India
Wild Swings In New Jersey
The Wind Didn't Blow As Hard In 2023