Electrification in Logistics: Plan for Success with Promise Energy
Supply chain decarbonization will require logistics cooperation
As the national economy continues to decarbonize and transition towards an electric future, each industry will face its own challenges. However, nearly every industry relies on one crucial supply chain component: logistics. In order to fully decarbonize the supply chain, logistics companies will need to make urgent and drastic transitions to electric fleets, as medium to heavy-duty trucks comprise 26% of the carbon footprint of the US transportation sector. The Port of LA, in addition to ports across California, will play a pivotal role in the shift away from internal combustion engines. Due to evolving market and policy conditions, like increased emissions regulations and rising fuel prices, logistics companies need to plan for these changes now.
The challenge ahead
Things are now a lot more challenging for logistics companies looking to expand their fleets. At the start of the year, California instituted a ban on diesel trucks older than 2010 and weighing more than 14,000 pounds. This means as many as 70,000 medium to heavy-duty trucks in California can no longer register with the state. Even more recently, the EPA approved a California requirement that electric trucks make up 40% to 75% of sales by 2035, depending on their vehicle class. On top of these momentous policies, fuel prices continue to climb across the country. Moving forward, logistics companies will face some serious heavy lifting, considering the planning and financial load it will take to electrify their fleets (can you say, “$300,000 for a truck?”). Despite the sticker shock, electrification is still the smartest long-term strategy, and will help companies stay competitive.
A complicated outlook
Complex aspects of fleet management, like charging scheduling, will be challenged by these changes, but proper planning and tech integration will help companies cope. Perhaps the most significant challenge will be load management, as logistics companies will have to balance the cost of energy with keeping their fleets charged and rolling. For a company managing a fleet of two trucks, this might not be as hard, but for the operations with eight, nine, ten trucks rolling around… charging in the most cost-effective manner will require a lot of planning. Things get even more complicated when you consider the time it takes to charge an electric truck. Some batteries can reach 80% capacity in 90 minutes, and a relatively linear charging rate means that 40% charge can be reached in around 45 minutes. “Refueling” periods of those lengths will require much greater planning than the gas-up pit stops of yesterday. Designing your charging schedule around peak hours, truck charging time, and your energy tariff will lead to the most cost-effective strategy. Promise Energy understands these complexities, and has the expertise to orchestrate these shifts with you, making them as seamless and painless as possible.
Designing an effective electrification strategy
Whether logistics companies are prepared for them or not, the new California truck regulations are here, and they are happening. Impending fleet electrification is simply a reality of the modern logistics industry. In order to stay competitive and keep your operations running as smoothly as possible, partner with Promise. We conduct operational assessments to determine each company’s optimal electrification strategy, considering shifts per day, miles per trip, demand, annual energy usage, and more to design an effective solution. By integrating energy efficiency resources like solar, storage, and microgrid technologies, our turnkey solutions ease the pain of these drastic changes - and can even help you monetize them.
Fleet electrification may sound daunting, and having to face the reality of the upfront costs and planning required can be frustrating for companies already dealing with a complicated supply chain. However, in order to stay competitive, you’ll have to start planning now. Many of the electrification upgrades companies will need are going to require grid updates, and those requests are already stretching into year-long queues. However, you can rest assured that once Promise has guided you through the process, and your new electric operations have been automated and optimized, the headache will pass.
Our holistic approach
Promise Energy understands that every business operation has unique needs, especially when it comes to those with vehicle fleets to manage. From charging your fleet with solar energy, to feeding back into your energy storage system, energy consumption and efficiency plays a driving role in how much profit you turn every month. Promise’s holistic approach to energy is what differentiates us from the crowd, and you can count on our energy experts to custom-design a system to meet the unique energy needs of your business.
Electrification could represent one of the most significant challenges your organization has faced in recent times. We recommend initiating the planning process promptly to facilitate a seamless transition. Get started by contacting Promise Energy at info@promiseenergy.com for a complimentary energy analysis.
At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.