The used truck market in the first half of this year has started to cool off from the white hot levels seen dating back to early 2021, when prices set their sights on six figures for models that were upwards of four years old. Carriers that took on used trucks in 2020 at the height of the pandemic could have disposed of those same assets two years later for a rate of return that might have outpaced every financial index on the planet. Three- to five-year-old trucks retailed for an average of 1.7% less money in May than April, according to J.D. Power, but this age group brought 82.6% more money in the first five months of 2022 than the same period 2021. Year to date, late-model sleepers have increased an average of 1.7% per month in value.
A 2018 Mack Pinnacle axle-back configuration originally retailed for $177,000 but could be had on the used market for just less than $76,000 two years later. By 2022, that some truck fetched just less than $100,000 retail. A brand new 2018 International LT could be had for about $136,000 and, on the used lot just two model years later, found for less than $85,000. As of June 2022, that same truck cost more than $104,000. Fleets in the market for a new Freightliner Cascadia in 2018 could get one for about $176,000. By June 2020 that model was retailing used at a discount of more than $100,000 – $74,000. However, as of June 2022 that same 2018 model year Cascadia is commanding $101,000. Kenworth's T680, new, retailed for about $179,000 in 2018 and by June 2020 was worth $100,000 less – $77,000. That same Kenworth rode a substantial supply shortage to retail used for more than $103,000 as of June this year. Peterbilt's Model 579 for the 2018 model year could be had for about $182,000 right off the assembly line, but just two years later shed 61% of its value to just less than $70,000. For 2022, that same model saw a bounce to just more than $100,000 – a 37% price improvement over two years prior for the same truck. Volvo checked in with the highest MSRP – $221,000 for a model year 2018 VNL – but just two years later, as of June 1, 2020, saw a 60% drop in resell value to just less than $87,000. A shortage of new and used equipment by mid-2022 put the VNL comfortably back into six figures and as of June 1 Volvo's on-highway flagship was retailing used for more than $136,000. "Class 8 auctions are starting to feel more like pre-pandemic times. Volume is up somewhat, with a substantial number of higher-mileage trucks selling for unimpressive money," said Chris Visser. "That said, pricing for the typical sleeper tractor is still more than 50% ahead of 2021, and the newest units -- as well as those with lower-than-average mileage -- are still commanding very strong money." Recent data reflects a rising number of operating authority terminations among owner-operators, but a corresponding climb in overall truck transportation employment (May was actually the highest month in recorded history for that sector) suggests many of these new owner-operators could be going to work for fleets, or that fleets are hiring drivers at a rate roughly equal to owner-operators leaving the industry. Combined with the precipitous drop in freight rates, Visser said transportation current paints a picture in two parts. "If truckers aren’t leaving the industry in droves, why are truck prices dropping? As we’ve said before, market shifts don’t require a major change in used truck supply. For example, in the pricing downturn of 2019, the volume of trucks in our auction benchmark group increased by only about 1,000 units during the entire peak-to-trough period. Remember, it’s not just the number of trucks available, it’s the number of trucks available for the freight economy we’re in," he said. "If your customers are mainly small fleets and owner-operators who operate in the spot market, you’re hearing the sky is falling. If your customers are mainly larger fleets who operate in the contract market, you’re hearing conditions are still strong. Used truck supply and pricing will continue to reflect the reduced demand for spot freight as well as more typical expectations for capacity needs in upcoming quarters." https://ift.tt/OKhV5Mo
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Trucking news and briefs for Tuesday, June 28, 2022: Trucking company owners plead guilty to PPP loan fraudSemsi Salja and Anes Suhonjic, the owners of 47-truck, Grand Rapids, Michigan-based general freight carrier DMR Transportation, pleaded guilty in federal court earlier this month to conspiring to commit bank fraud in connection with a $290,855 loan under the Paycheck Protection Program (PPP). In a related civil case, DMR, Salja and Suhonjic agreed to pay a total of $1 million, including a substantial civil monetary penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). In 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) to provide emergency federal assistance for the economic effects of the COVID-19 pandemic. Through the PPP, the CARES Act authorized forgivable loans to small businesses for job retention and certain other expenses. In its second-draw PPP loan application, the Department of Justice said DMR knowingly and falsely certified that it suffered the required 25% reduction in gross receipts between the second financial quarter of 2019 and the second financial quarter of 2020. DMR also allegedly submitted falsified quarterly balance sheets and other false financial records that were signed by Salja and Suhonjic alongside the application. In September 2021, DMR sought forgiveness of its second-draw PPP loan by falsely certifying that its second-draw PPP loan proceeds were used to pay eligible business expenses when, in fact, DMR held that money in reserve, DOJ added. “The PPP involved a limited pool of funds to help small businesses wracked by the disruption of a global pandemic,” United States Attorney Mark Totten said. “By fraudulently obtaining a second PPP loan, DMR took, for itself, hundreds of thousands of dollars that could have been used to help deserving companies. My office will continue to aggressively investigate and prosecute these cases.” Salja and Suhonjic face a maximum of five years in prison. Navistar issues recall over Sheppard steering gearsNavistar is recalling more than 33,000 vehicles affected by the steering gear recall from Bendix subsidiary R.H. Sheppard, according to National Highway Traffic Safety Administration documents. Navistar’s recall affects approximately 33,655 model year 2022-2023 International HX, HV, LoneStar, LT, MV, RH, IC TC Commercial Bus, and 2022 International WorkStar vehicles. The steering gears may have been assembled incorrectly, which can cause the gear to fracture. Dealers will inspect the steering gear serial numbers, and replace the steering gears as necessary, free of charge. Owner notification letters are expected to be mailed Aug. 18. Owners can contact Navistar customer service at 1-800-448-7825 with recall number 22513. NHTSA’s recall number is 22V-428. AMBEST appoints new president, CEOAMBEST, the member-owned, nationwide network of more than 500 independent truck stops and service centers, has appointed Chuck Ryan president and CEO, effective July 18. He replaces Steve Allen, who is stepping aside following 33 years of service as both an executive and a former member. Allen will continue to support the organization as an Advisor to the Board of Directors.Ryan's career in the fuels industry began in Chicago as a night manager for Ashland Oil and led into a 30-plus year career serving in leadership with Shell/Motiva. Prior to his selection by AMBEST's Board of Directors, he was serving as the COO for Good Oil Company based in Winamac, Indiana. "Chuck brings a wealth of experience in the trucking, retail and fuel industry," Allen said. "I'm certain that we have selected a leader who will advance our organization's mission to support America's truckers and AMBEST Members. Chuck and the amazing Team at AMBEST will continue to innovate and expand our network across America." Transportation and Logistics Systems sells off Shyp FX businessTransportation and Logistics Systems, Inc., has sold its Shyp FX subsidiary to an undisclosed buyer for $825,000. Shyp FX was dedicated to servicing Federal Express routes in northern New Jersey. TLSS Chairman and Chief Executive Officer Sebastian Giordano said that the operations of FX no longer fit into the company's long-term growth plans, including the close of the recently signed Freight Connections transaction which, when consummated, "would give us a much stronger presence in Northern New Jersey to expand our operations in the region." Freight Connections is a New Jersey based business offering various transportation, warehousing, consolidating, distribution and local cartage services throughout the tri-state area. https://ift.tt/OKhV5Mo A Connecticut-based, three-truck fleet has been effectively shut down by the Federal Motor Carrier Safety Administration for various driver- and vehicle-related safety violations. According to FMCSA, the agency found during a compliance investigation that Orange, Connecticut-based Alvarez Transport LLC had “extensive acute and/or critical violations in almost every part of the FMCSRs that they reviewed,” including 49 CFR Part 382 (Controlled Substances and Alcohol Use and Testing), 49 CFR Part 383 (Commercial Driver's License Standards; Requirements and Penalties), 49 CFR Part 391 (Qualifications of Drivers), and 49 CFR Part 396 (Vehicle Inspection, Repair, and Maintenance). “Cumulatively, these violations demonstrated the motor carrier’s lack of effective safety management controls and significantly increased the likelihood of death or serious injury if not discontinued immediately,” FMCSA said. An attempt to reach Alvarez Transport by phone went unanswered Monday morning. While the compliance investigation was ongoing, on or about June 2, Alvarez Transport dispatched driver Dante C. Elliott to drive a commercial motor vehicle for which a CDL is required in interstate commerce from New Haven, Connecticut to Williamstown, Vermont. At the time of dispatch, the motor carrier had in its records a copy of Elliott’s driver's license that showed it was expired. While attempting to navigate a sharp curve on Vermont Route 64 in this truck, Elliott left the roadway and the truck slid into a ditch, overturned, and then came to a position of uncontrolled rest on its roof. Both Elliott and his passenger were killed in the crash. Witnesses reported that the truck’s brakes were smoking before the crash, and a post-crash inspection discovered several out-of-service vehicle conditions, including cracked brake linings, inoperative brakes, and chafed service and emergency brake air hoses. Local law enforcement is still investigating the crash, FMCSA noted. According to FMCSA, over the last two years, Alvarez Transport had a vehicle out-of-service rate of 81.8% (the industry average is slightly more than 20%. The agency said during that time period, the company was subject to six roadside inspections -- four of which involved a vehicle inspection. Three of those four inspections resulted in at least one out-of-service violation. During the six inspections, Alvarez’s drivers were cited for 23 vehicle maintenance violations, including inoperative required lamps and turn signals, inoperative or defective brakes, and air leak in the brake system. Failing to comply with the provisions of the federal imminent hazard order could result in civil penalties of up to $29,893. Knowing and/or willful violations could also result in criminal penalties. https://ift.tt/bzdLe4W The Supreme Court did not include the California Trucking Association’s challenge to California’s AB 5 independent contractor law in its latest Order List issued Monday, signifying that the Court will not decide whether it will hear the case until at least October. The Court’s summer recess is scheduled to begin this week, and the Justices are not scheduled to return until October. CTA’s case was distributed for the Court’s June 23 Conference Day, but it appears the Justices did not make a decision on whether to hear the case. Greg Feary, president of transportation legal firm Scopelitis, Garvin, Light, Hanson & Feary, said while it’s “not for certain,” the most likely outcome is that SCOTUS will not release a decision on certiorari until Oct. 7 or later when the Court returns from its summer recess. Feary added that it’s also possible that the Court could be waiting for a dissenting opinion to be finalized before issuing its ruling. Feary noted that another case involving federal preemption, but for the airline industry -- Bernstein v. Virgin America -- was also noticeably absent from Monday’s Order List, which could be an indication that the two cases might be combined. California’s AB 5 is currently on hold for the trucking industry pending the outcome of this case. If enforced for trucking, the law would effectively ban the traditional leased owner-operator model in the state. CTA’s case claims that AB 5 is preempted by the 1994 Federal Aviation Administration Authorization Act (FAAAA or F4A), which bars states from enacting laws that interfere with “routes, prices and services” of motor carriers. In May, the Solicitor General filed a brief on behalf of the U.S. government recommending that SCOTUS deny hearing the case. CTA responded to the government’s brief, calling its claims “head-scratchingly wrong.” https://ift.tt/bzdLe4W Kenan Advantage Group (CCJ Top 250, No. 19) the largest tank truck transporter and logistics provider in North America, has acquired Lafayette, Louisiana-based American PetroLog. American PetroLog offers a wide variety of logistics, transportation, storage and transloading services for commodities such as water treatment chemicals, biofuels, lube oil, wax, missile fuel, rocket propellant, oilfield chemicals, alcohol and glycol. "There are tremendous synergies between our two organizations, which we plan to capitalize on as we hit the ground running on day one," said Kevin Spencer, President of KAG Logistics, a subsidiary of The Kenan Advantage Group. "American PetroLog has an impeccable reputation in our shared end markets and is committed to solving the complex supply chain challenges of our combined customers today and our potential customers in the future. Their passion and commitment to their people and their partners align perfectly with our vision to be the premier global transportation and logistics provider." As part of the deal, American PetroLog President and CEO Jeff Colonna will join KAG Logistics. “We are excited about the opportunities this partnership with KAGL will provide our team and our customers," he said. "The timing is also significant with many shippers seeking to secure reliable capacity after the supply chain disruption faced by many over the last two years. By joining KAGL, we are even better positioned to meet the unique needs of our customers in the liquid bulk/petrochemical space going forward.” Spencer Tenney, President and CEO of Tenney Group, which acted as an advisor to American PetroLog, called the deal "a great win for both parties. It also demonstrates how record level M&A activity is changing the competitive landscape in logistics.” Indeed, mergers and acquisitions have been on a torrid pace. KAG Logistics' is the seventh acquisition among CCJ's Top 250 for-hire carriers this month, joining USA Truck (No. 68) being bought by DB Schenker; Freymiller's (No. 147) acquisition by investment groups, Fastfrate's acquisition of Challenger Motor Freight (No. 77); PAM's purchase of Metropolitan Trucking; Heartland Express (No. 42) picking up Roaring Spring, Pennsylvania-based Smith Transport (No. 111); and Schneider's (No. 8) acquisition of deBoer Transportation, a regional and dedicated carrier headquartered in Blenker, Wisconsin. https://ift.tt/bzdLe4W Trucking news and briefs for Monday, June 27, 2022: Fleet honors drivers at NASCAR raceCPC Logistics recognized 18 of its Hall of Fame and All-Star Drivers from across the United States and Canada at the inaugural Enjoy Illinois 300 NASCAR Cup Series race June 4-5 -- which drew a crowd of 100,000 people -- at World Wide Technology Raceway. The drivers recognized were: Hall of Fame Drivers Drivers of the Year All-Star Drivers “In the past, we have sent drivers who were being recognized by the National Private Truck Council to an annual conference, but due to the COVID-19 pandemic, we were unable to take them to those locations in 2020 and 2021,” said CPC President Butch Wallis. “This ‘Driver Salute’ event was a special way for all of us at CPC to thank those dedicated drivers for their hard work.” The Driver Salute event began when the drivers and their guests arrived for their stay at St. Louis Union Station Hotel on June 4. That evening, CPC hosted a reception at PBR St. Louis in Ballpark Village, where each driver was recognized for their achievements during an awards ceremony led by Wallis, CPC Managing Director Duane Trower, and CPC Vice President of Operations and Safety Daniel Most. On June 5, before the sold-out race started, the drivers drove two laps in their semi-tractor trailers around World Wide Technology Raceway’s oval During their laps, an announcer read each driver’s name and accomplishments while their picture was broadcast on the jumbotron. After their laps, they were able to enjoy a CPC VIP tent and more. Kenworth hosts inaugural truck parade in ChillicotheThe Kenworth Class 8 truck assembly plant in Chillicothe, Ohio, recently hosted its inaugural Kenworth truck parade in downtown Chillicothe. The 2022 Kenworth Truck Parade featured more than 50 Class 8 new, classic and customized Kenworth trucks, including models built in 1967 and Kenworth’s latest models, such as the T680 Next Gen. Truck drivers from 28 states and Canada traveled to Chillicothe to showcase their trucks in the parade. The parade began at dusk, allowing drivers to show off their truck’s light features as they made their way through the historic downtown area of Chillicothe. To support the local community, the Kenworth Chillicothe plant raised money for the United Way of Ross County. During the parade, Kenworth Chillicothe plant employees and members of the United Way of Ross County collected donations with all proceeds going to the non-profit organization. Leading up to the truck parade, the Kenworth Chillicothe plant held events at its facility for drivers and their families participating and attending the parade. Drivers had an opportunity to take a tour of the plant to see where the majority of Kenworth’s Class 8 trucks are built. The plant also hosted a family event on the plant’s property during the day of the parade. https://ift.tt/bzdLe4W The A.J. Soza Memorial Truck Show's second edition got under way today, Friday, June 24, at the fairgrounds in Merced, California. The Central Valley location stood in high relief at the early point in the day shown above, when these hay-hauling doubles rolled in with a livestock hauler between them. Principal show founder C.G. Soza, owner of the small car-haul fleet that bears his name and shown directing the operator to a spot in the rows of rigs lining up to show through Sunday this weekend, recalled his childhood growing up in the region. "That certain smell about the Central Valley in the morning here in California, it always brings me back to my childhood days," he said, growing up surrounded by agriculture. "It's sort of a hay smell," much like the one we were basking in by Soza's own 2016 Kenworth W9 on the lot as the rigs crept by this morning. It's hard to take a picture of a smell, no doubt, but there's plenty more I can give you today based on just several hours at the show so far. I'm here through Saturday. (There will be a lot more to come in the following weeks, no doubt, so stay tuned.) Owner-operator Erik Vaillette, based north of of the area in Redding and leased to small fleet owner Steve Wilbur's Commodity Transport small fleet pulling a flatbed, was among the first I caught a glimpse of on the way in, staged outside the main lot for detail work. If you make it out to the show, look for me and say hi. Otherwise, here's hoping it's a great weekend, whether at home or on the road. Oh, a-and one more thing. Despite all that the state of California has thrown at trucking over the years, the truck-show scene is strong. Vaillette recently wrapped up his Frenchy's Truck Jamboree with collaborators in Red Bluff -- with nearly 300 entries -- late last month. And the Rodriguez family is likewise promoting the show on the flyer in the picture below, put on by the car club they're members of. This year, for the first time, it will feature custom Class 8s as well. In 2019, the last time the event was held -- COVID intervened -- there were 700 cars that participated. You can bet three years on participation will be high, kicking off late next month. https://ift.tt/yIgW6HL DB Schenker, one of the largest logistics service providers in the world, is acquiring USA Truck (CCJ Top 250, No. 68) for approximately $435 million, the companies announced Friday. Founded nearly 40 years ago, USA Truck's fleet includes nearly 1,900 trucks, more than 2,000 employees, partnerships with more than 36,000 active contract carriers, strategic network of terminals across the Eastern half of the United States and a nationwide third-party logistics presence. In the Americas, DB Schenker is one of the largest integrated logistics service providers with more than 10,000 employees in 123 locations providing over 27 million sq. ft. of distribution operations to its clients. Globally it operates land, air, and ocean transportation services, and it also offers comprehensive solutions for logistics and global supply chain management. "USA Truck is the perfect match for DB Schenker's strategic ambition to expand our network in North America and foster our position as a leading global logistics provider," said DB Schenker CEO Jochen Thewes. "Together we will enhance our shared value proposition and invest in exciting growth opportunities and sustainable logistics solutions for new and existing clients." Thewes noted that upon closing the deal – which has already been unanimously approved by USA Truck's Board of Directors – DB Schenker seeks to strengthen and expand USA Truck's presence in North America, while utilizing its complementary international logistics expertise, air transport services and ocean gateways to benefit USA Truck's existing customer base. DB Schenker also intends to expand its global logistics services across land, air, and ocean transportation services, as well as comprehensive solutions for logistics and global supply chain management, by leveraging USA Truck's existing U.S. and Mexico freight network. DB Schenker is acquiring USA Truck at a cost of $31.72 per share, a deal that President and CEO James Reed said "provides immediate and significant value for USA Truck stockholders, offers broadened career opportunities for our employees and increased capacity and service offerings with which to support our customers, and better positions our company to realize our long-term vision to become the premier North American transportation solutions provider." "We are thrilled to have found a partner that appreciates USA Truck's rich history, is closely aligned with our mission and values, and brings additional resources that we believe enable us to build on our nearly 40-year legacy of industry leadership," he added. DB Schenker's Executive Vice President Land Transport, Americas Region, Joe Jaska, welcomed existing USA Truck employees into the fold, calling them "an integral part of our team." June has been a hot month for acquisitions among CCJ's Top 250 for-hire carriers. USA Truck's is arguably the largest, joining Freymiller's (No. 147) acquisition by investment groups, Fastfrate's acquisition of Challenger Motor Freight (No. 77); PAM's purchase of Metropolitan Trucking; Heartland Express (No. 42) picking up Roaring Spring, Pennsylvania-based Smith Transport (No. 111); and Schneider's (No. 8) acquisition of deBoer Transportation, a regional and dedicated carrier headquartered in Blenker, Wisconsin. https://ift.tt/Ri8DrXL The face of the global supply chain has seen a significant shift in recent years as consumers have changed how they obtain their goods, and the turn to e-commerce was exacerbated by the COVID-19 pandemic when people couldn’t leave their homes and needed goods shipped directly to them in short periods of time. It’s no longer early adopters using the technology it takes to participate in e-commerce. Nishith Rastogi’s parents use a Switch to order everyday products to be shipped to their home, and like all consumers, they expect that shipment to be at their door by its estimated time of arrival. “What has happened in the last 10 years is a very interesting shift where people, as end consumers, have entered the supply chain. We used to go to a retail store and pull our goods from there. Today, most of our goods and now even services are being pushed down to us at our home and offices,” said Rastogi, founder and CEO of last-mile logistics technology company Locus. “That creates an entirely new leg of supply chain and a significantly more random, dynamic piece, which requires intelligent decision making.” Shippers now have considerably more locations to ship to when getting consumer products to their individual households at a certain time on a certain day rather than a select few stores that then distribute products to the masses, and it’s not an easy thing to do, Rastogi said. It has created logistical challenges from order to delivery as companies’ demand patterns are completely different on a daily basis, but Rastogi said real-world visibility can help alleviate those pain points. Rastogi’s company recently launched its real-world order-to-delivery dispatch management platform that removes the responsibility of dispatching from shippers by connecting to their order management systems and offering a bundle of options to deliver goods to customers in an effective manner. The platform uses advanced optimization algorithms and intuitive workflow automation to learn from previous outcomes to drive more efficient dispatch planning, scheduling and routing. It also helps increase visibility, capacity and carrier management under an integrated API-ready solution that helps streamline logistics complexities, maximize operational efficiency and improve end-user experiences, according to Locus. The Locus platform provides a management dashboard that gives customers available delivery slots to select from so dispatchers can consider that in their planning. If a delivery gets delayed, Rastogi said the customer has the option to reschedule a limited number of times, which can save costs in last-mile delivery by avoiding failed delivery attempts, as a second attempt to deliver, he said, is four times more expensive when you account for the return costs. And last-mile is one of the most troublesome and costly global supply chain processes. Rastogi said the last 14 miles of a 400-mile journey account for about 51% of the cost of the entire logistics process. And it has real-world obstacles that can challenge even the most established companies. That’s why real-world visibility is more impactful than real-time tracking. Rastogi said it’s not just about knowing the location of materials; it’s about understanding the overall health of the system. “In accomplishing all of this, one of the core aspects of the real-world (visibility) that comes out is factoring it in the decision making,” he said. “The problem of delivering between 9 and 11 a.m. is two parts: 1) Collecting the preference that you want to deliver between 9 and 11. 2) Having route optimization, which is capable of delivering between 9 and 11, not because it's mathematically the most optimized route, but it's a route that factors the real-world conditions: the traffic, the weather, of course, but also things like how wide is the road, and can the truck enter there; are there any local restrictions; is there a low bridge; what is the wind speed, which can factor into a side curtain truck; are there any pollution restrictions like is it an electric vehicle only zone; are there any railway bridges that it can't cross; what are the number of loading bays that exist, and what kind of stagger rate does it need to have; and so on and so forth, including driver preferences.” But while real-world visibility may be more impactful for the supply chain, Rastogi said most companies today are engaging first in real-time tracking. “Think of it as a digital adoption curve,” he said. “Layer one is digital visibility, layer two is automation and optimization, layer three is customer experience and layer four is realization of gains, where you can now start leveraging some of this customer experience to create your supply chain as a competitive differentiator.” https://ift.tt/Ri8DrXL Some of the best interviews are the ones you least expect. Case in point: While at the Advanced Clean Transportation Expo last month in Long Beach, Cailfornia, I was given the task of interviewing fleet reps at the ride and drive event to get their impressions on a growing number of clean-running trucks and vans. (Video below) It’s not as easy as it sounds. First, I had to locate a truck or van of interest in the convention center parking lot as it rolled back in from a brief test drive. Second, I had to hope that the person inside the vehicle actually worked for a fleet and that they would agree to an on-camera interview with yours truly. About half the people I approached were vehicle suppliers and manufacturers — not fleets which I needed for this assignment. Thankfully, most fleet folks were agreeable to an on-camera interview (though a few changed their minds once they stepped in front of the camera) and most made the final cut. But there’s one interview you won’t see and for good reason. One of my fleet sources, as it turned out, was a tow truck company owner in Indiana. So, was he interested in adding an EV to his fleet? Maybe even an electric tow truck? Granted, there were none in the ride and drive but what’s to stop a guy from dreaming and driving the next best thing? No, he wasn’t interested in buying a zero-emission vehicle (ZEV). He was more interested in learning how to tow them properly. He explained that he had already been towing range-depleted electric cars on the side of the road, and now he wanted to get the jump on all-electric trucks and vans. (And no, he didn’t miss the irony of a ZEV being rescued by ICE.) That totally took me and my camera man by surprise. But really…how can you not appreciate a tow truck driver who’s trying to get ahead of the curve for a big commercial EV rollout? After all, towing an EV, he said, was not like towing conventional ICE. So he came here to the Mecca of ZEVs to learn even more since he suspected that he’d eventually be getting calls for range-depleted electric trucks and vans on the side of the road alongside those electric cars. So, what about his ride and drive impressions? He liked the vehicles during those short few minutes he was given to get acquainted. He was just concerned about range and the ability of these high-tech, high-dollar ZEVs — particularly all-electric — to keep up with the rigorous demands of work. I heard that from other sources as well. During a lunch break inside the convention center, I struck up a conversation with a gentleman sitting close by (finding a seat could be tough considering ACT’s record attendance shot up 60% over last year). It just so happens this man was a fleet manager shopping for zero-emission trucks. He flat out told me that all-electric wouldn’t cut it for his power-hungry street sweepers. He was definitely leaning more towards fuel cell. So electric took another hit during another surprise interview leaving fuel cell to move ahead with longer range and faster fill times. Still, both technologies remain fairly unproven outside of some pilot programs and are really expensive — nearly untouchable outside of incentive-rich California. What if there was a third zero-emission option that leans on a technology that fleets have come to trust all along? There just might be. The German-based Hydrogen Engine Alliance told me this week that the European Union is considering zero-emission status for hydrogen engines. You can read more about that here. Basically, it comes down to the ability of hydrogen ICE to drastically cut carbon, which climate advocates say destroys the ozone layer and leads to higher temperatures. Hydrogen sourced from renewable natural gas (RNG) can get an even lower carbon intensity score since RNG production eliminates methane that’s considered to be much more destructive to ozone than CO2. Hydrogen engines use an internal combustion platform that’s familiar to fleets and costs significantly less than all-electric and fuel cell. True, there are emissions but as Cummins general manager of hydrogen engine business Jim Nebergall explained it’s “a 75% reduction in NOx from today’s standards.” Hydrogen engines for medium and heavy-duty trucks in Europe certainly appear to have a good chance of earning a ZEV moniker. After all, the EU “classifies vehicles with combustion engines as zero-emission vehicles if their emission levels are below 1 g CO2/kWh,” said Thomas Korn, engineer and founder of hydrogen engine company Keyou in Munich, Germany. That would include hydrogen combustion, Korn added. But that’s Europe, not the U.S. where the California Air Resources Board and EPA view any tailpipe emissions as disqualifying a powertrain from ZEV status. In a black and white sense, I get it. But given the lower cost, the big drop in NOx and the sharp carbon reduction – a 99% drop in CO2 for Cummins’ 6.7 and 15-liter hydrogen engines — and power similar to diesel according to Nebergall, maybe CARB and the EPA really need to rethink their position on hydrogen combustion. Besides, other players in H2 ICE are emerging including Toyota, Yamaha and Ford. Simply put, expecting all-electric and even some fuel cells to rise up and take the place of all diesel-powered commercial trucks and vans isn’t fair to those nascent industries or fleets, though admittedly there might be some tow truck drivers eager to swoop in and save the day. https://ift.tt/Ri8DrXL |
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April 2023
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