Ryder analysis challenges cost savings of battery electric trucks strategy
In a recent analysis conducted by Ryder, the myth that battery electric trucks offer significant cost savings in comparison to diesel trucks has been debunked. The study, based on representative network loads and routes from Ryder’s dedicated fleet operations, found that the annual total cost to transport (TCT) by EV versus diesel is estimated to increase across the board.
Ryder’s data shows that in today’s market, the cost to transport using EVs can range from up to 5% higher for light-duty transit to more than double the cost for a heavy-duty tractor, depending on the geographic area. For a mixed fleet of 25 light-, medium-, and heavy-duty vehicles, the analysis reveals an increased TCT of up to 67% for an all-electric fleet.
According to Ryder’s chairman and CEO, Robert Sanchez, even though Ryder has introduced a turnkey solution for electric trucks, they are not seeing significant adoption of this technology due to the limitations of the technology and lack of sufficient charging infrastructure. The study estimates that the cost increases to convert heavy-duty and mixed fleets to EVs could add approximately 0.5% to 1% to overall inflation as these costs are passed along to consumers.
California, known as Ground Zero for zero-emission transport, will see heavy-duty transport costs more than double in comparison to diesel due to its stringent regulations and mandates. For a heavy-duty Class 8 EV tractor, Ryder estimates an annual TCT increase of approximately 94%, totaling around $315,000. The largest contributors to this cost increase are equipment costs, general and administrative costs, and labor and personnel costs.
In contrast, lighter-duty use cases in California show less of a financial burden. A light-duty EV transit van (Class 4) is estimated to have a 3% increase in TCT, while a medium-duty EV straight truck (Class 6) is expected to see a 22% increase in TCT.
Karen Jones, Ryder’s executive vice president, and head of new product development emphasized that while there are specific applications where EV adoption makes sense, the use cases are still limited. She expressed concern about regulations aimed at accelerating broader EV adoption when the technology and infrastructure are still in the development stage.
The analysis also revealed that states with lower fuel and energy costs do not provide the same level of savings when transitioning from fuel to electricity as observed in California. States like Georgia saw TCT increases of nearly 114%, emphasizing the higher cost disadvantages in comparison to California.
Overall, the findings from Ryder’s analysis point to the fact that while there are benefits to transitioning to electric trucks, the costs involved may not justify the switch for many motor carriers. As regulations continue to evolve, it is essential to consider the economic implications of mandating a shift to EVs in today’s market.
While the total cost of ownership for electric trucks has traditionally been seen as lower due to reduced fuel expenses and maintenance savings, recent analysis by Ryder shows that this may not always be the case. The data suggests that the annual total cost to transport by electric vehicles could actually increase, with heavy-duty trucks facing the biggest cost hike. This analysis provides valuable insights for motor carriers considering a transition to electric trucks, highlighting the current limitations and challenges in the adoption of this technology.
Electric truck manufacturers are facing challenges regarding the cost of transitioning from diesel-powered trucks to electric trucks. According to a recent article on CCJ Digital, the cost of operating an electric truck could be more than twice as much as operating a diesel truck. This could pose a significant hurdle for fleets looking to make the switch to electric vehicles.