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Electric Yard Trucks Are Delivering Lower TCO

2025-10-10T14:40:21-05:00May 2, 2022|Yard Trucks|

While over-the-road heavy duty electric trucks are still being developed, pure electric yard trucks are already ramped up and providing well-established benefits: they’re more comfortable to drive than their diesel counterparts, have lower operating costs, and produce zero emissions. And hard data from these deployments prove that electric yard trucks can pencil out in short order, even without incentives. Yard trucks are generally off-road vehicles that work at speeds under 25 mph moving trailers and shipping containers. These vehicles typically operate within the confines of a yard focused on warehousing, distribution, manufacturing, or intermodal transfer. In these scenarios, diesel yard trucks are particularly inefficient, while the low-speed operation, frequent starts and stops, and close proximity to charging stations are an excellent fit for battery electric yard trucks. Calculating payback speed – the length of time needed to recoup the higher up-front cost of electric over diesel – depends on each fleet’s unique duty cycle and cost structure. The primary variables include: Taking these variables into account, electric yard trucks have already been delivering a lower total cost of ownership (TCO), even at moderate-use sites, and even without incentives. Payback can be three to four years at moderate-use sites and even faster for heavy-use operations. Here’s a simple scenario to illustrate this point: Let’s start with the upfront cost. A fleet can purchase a new Tier 4 diesel yard truck for $120,000, while the cost of an electric yard truck could be $270,000, including charging and infrastructure costs. With the right charger selection, most sites will already have the electrical capacity required for initial electric yard truck deployments, so these locations will require minimal additional infrastructure for charging. The incremental upfront cost of electric over diesel is $150,000 per truck. Now we’ll add the fuel cost. Electricity costs much less than diesel, and EVs are much more energy efficient than internal combustion engines. These advantages result in an 85%-90% reduction in fuel expenses. In a moderate two-shift operation, one diesel yard truck can operate 4,000 hours per year, generating diesel fuel costs of $28,000 (at 1.75 gal/hr and $4.00/gal) compared to an electricity cost of $3,360 for the electric yard truck (at 7 kWh/hour and $0.12/kWh). The fuel savings adds up to $24,640 per year, in favor of the electric yard truck. If we look at a busier use case and more recent diesel prices, such as 6,000 hours per year and $5.50/gallon for diesel in California, the annual fuel cost savings would be over $50,000. Operations like this will see even greater savings and faster payback. , Bolthouse Farms concurrently deployed new electric and diesel yard trucks. This direct, 2-year comparison revealed an 80% reduction in M&R costs with electric yard trucks, generating net savings of $3.15/hour. Sound too good to be true? When you think about where the savings come from, it makes perfect sense: M&R savings for one electric yard truck would equal $12,600 per year at a $3.15/hour reduction over 4,000 hours of operation. Note that this case study used internal labor rates. Where outsourced maintenance costs more, savings will be even greater. Some fleets have reported M&R savings of up to $6.50/hour. In the same case study referenced above, Bolthouse documented a 75% reduction in downtime with electric yard trucks. It’s not uncommon to hear of diesel yard trucks being down 20% of the time, while Orange EV electric yard trucks average just 1-2% downtime. This dramatic reduction in downtime is achieved through a combination of more reliable parts, avoiding repair-prone diesel components, and speedy repairs done on-site using a fleet of mobile service technicians. The direct cost of diesel downtime repairs is captured in the M&R budget, but additional expenses are incurred from lost productivity, late deliveries, and the need to either rent replacement trucks or purchase and manage more diesel trucks than strictly necessary, to cover for diesel yard trucks stuck in the shop. Add to this the many diesel-related costs that are minimized or eliminated with electric: diesel fuel management, emissions- or spill-related fees and fines, hazmat cleanup, liability and workers’ comp claims, etc. These savings can conservatively total at least $10,000 per year, in favor of electric yard trucks. Diesel yard trucks are hard on drivers due to the drivers’ continuous exposure to: All of these impacts are eliminated with electric trucks, increasing driver health and well-being while positively influencing productivity, job satisfaction, and employee retention. Reduced noise and emissions also benefit other site personnel and the surrounding community. These soft dollar savings are real, but harder to quantify, so we’ll leave them out of this simple calculation. In this example, the savings from using electric yard trucks add up to $47,240 per year, giving a payback of 3.2 years for the $150,000 incremental cost. Making small changes to this scenario will increase the savings realized and further accelerate the payback: Of course, this is a simplistic view. From a cost basis perspective, it’s important to factor in asset depreciation and interest, warranties, and site-specific data when available. Will the payback for electric yard trucks be about three years in every case? No. But the savings and benefits are proven and real. Taking the time to run the numbers to guide your decision can result in a competitive advantage, a safer, healthier work environment, and meaningful, measurable steps towards sustainability goals. Even lower-use operations can pencil out, and when budgets don’t have room for the higher up-front cost of electric yard trucks, leasing can be a very helpful solution. Incentives can also help defray costs, but they come with uncertainty, restrictions, and quite often, a long timeline. Competition is increasing for grants and vouchers, and if awarded, fleets may have to wait six months or more to deploy their new trucks, losing out on months of operational savings and emissions reductions. Independent studies also confirm the real-world savings reported by fleets operating electric yard trucks. According to the December 23, 2021 release of “Charging Forward: BEV & FCEV Forecast and Analysis, 2nd Edition” by ACT Research, battery-electric powered yard trucks in 2021 provided a better TCO than diesel-powered versions. Electric yard trucks have proven they can do the job, with over 400 trucks deployed across the U.S. in harsh climates, 24×7 operations, and all sectors of goods movement. Given their compelling benefits and lower total cost of ownership, electric yard trucks are well on their way to becoming the industry standard. The time to switch is now. Published: { "@context": "", "@type": "ImageObject", "contentUrl": "", "name": "Multiple Orange EV Yard Trucks", "description": "Orange EV pure electric yard trucks", "provider": { "@type": "Organization", "name": "Orange EV", "url": "", "image": "" } } { "@context": "", "@type": "WebPage", "mainEntityOfPage": { "@type": "WebPage", "@id": "" }, "headline": "Electric Yard Trucks Are Delivering Lower TCO, Even Without Incentives", "image": [ ], "datePublished": "2022-05-02T12:47:37+00:00", "author": { "@type": "Organization", "name": "Orange EV" }, "publisher": { "@type": "Organization", "name": "Orange EV", "logo": { "@type": "ImageObject", "url": "" } }, "description": "The electrification of the trucking industry is ramping up, and while the prospect of electric over-the-road fleets crisscrossing the nation’s highways is exciting, it’s definitely a work in progress. 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EV Opportunities are Blooming in Terminal Yards

2025-10-13T10:58:15-05:00April 25, 2022|Terminal Tractors|

Most corporations are looking more seriously at sustainability than ever before. But in the trucking industry, still dominated by fossil fuels, it can be tough to know where to start. Some fleets are not looking at over-the-road operations—they’re finding early zero-emissions victories in their yards. Albertsons, the second-largest grocery chain in the U.S., is finding sustainability success since it began using battery-electric terminal tractors at some of its 19 terminals. The EV yard tractors prove to be one of the best ways for fleets to test how alternate-powered Class 8 vehicles could fit into operations. “As part of . “We currently have 11 EV terminal tractors with plans to purchase seven more this year.” Albertsons' 120 diesel-powered terminal tractors will still outnumber the 18 EV yard tractors it expects to have by 2023. But that is not likely to last long, according to two recent industry studies that note how yard tractors are prime equipment for electrification. “These conversions are happening now—and it’s happening rapidly,” Zack Ruderman, VP of sales and marketing for , said. “We’re investing to significantly increase our production capacity to more than double this year versus last year.” Albertsons is one of Orange EV’s more than 100 fleet customers across the U.S. Ruderman told  (NACFE) study highlighted the potential efficiency of EV yard tractors. “We acknowledge that electrification can be difficult, especially in the Class 8 market,” , NACFE’s executive director, said. “But right now, the electrification of terminal tractors makes sense and is a good place for fleets to begin their electrification journey.” NACFE recently released the first of four trucking market segment reports from its freight efficiency study. The council found “terminal tractors one of the best, if not the best, paths for heavy-duty tractor fleets to learn about and implement a BEV in a fleet operation.” . Along with the environmental benefits and reduced maintenance costs of EVs, NACFE noted that the electric terminal tractors provide a better workplace for drivers because they’re quieter and smoother than the diesel versions. “We have received positive feedback from our drivers, saying that they prefer the modern technology of the BEV yard spotters,” Albertsons' Burke said. “They like that these EV terminal tractors improve uptime, do not require fueling, and there’s less preventive maintenance. They also appreciate that they are quiet, cool, and odorless.” BEV terminal tractors can also be used inside warehouses with no emissions—not just yards, NACFE noted. And maintenance costs for the BEVs can be 60% to 75% less than diesel-powered terminal tractors built after 2017. The stop-and-go nature of terminal work also offers regular opportunities to recharge. “Terminal tractors provide a good use case for electrification because they operate in low mileage applications and can opportunity charge throughout the day while drivers are on breaks,” said Kevin Otto, lead author of the report and NACFE’s electrification technical lead. Burke explained that is a big part of the early success Albertsons has found in its yards. “We have seen positive results in the transition to EV terminal tractors,” he said. “For example, since we run a 24/7 operation, opportunity charging has made the transition so easy and convenient since the EVs do not require dedicated charging times.” Albertsons uses opportunity-charging as part of its standard operating procedure for its drivers, based on Orange EV’s recommendation to maintain an optimal state of charge. “We refined it based on employee feedback after deployment with charging occurring between shifts, during breaks, and meal periods,” Burke added. “If you look at the market in general, the EV technology that is here now—and is very good—is that yard tractor application,” Al Barner, SVP of strategic fleet solutions at . “You’ve got the power source right there where the trucks operate. From drivers’ acceptance, they love them because there’s less noise. They’re more comfortable. It’s a good application—and you’ve got the opportunity-charging.” Fleet Advantage is a truck fleet business analytics, equipment financing, and asset lifecycle cost management company. With today’s supply chain problems delaying new vehicle deliveries, it is crucial to know how fleets manage their equipment and plan for the future. Part of that future planning Barner has seen more of is how to make terminals more sustainable for the environment and fleet employees. An “The technology advances are what’s increasing adoption,” Ann Rundle, VP of electrification and autonomy for ACT Research, said during ACT’s Seminar 66, held in February in Columbus, Indiana. While noting that government regulations have pushed some trucking operations toward EVs in recent years, Rundle said battery technology gains over time would exceed regulatory influences on fleets. “Battery costs are falling as the volumes increase,” she said. “Another thing is battery energy density has been improving over time.” A vehicle battery in 2022 has about three times more power density than the same sized battery in 2012, said Rundle, who was the principal author of the ACT Research study released in December. “So that means either three times more range, one-third less size pack, or you pick how you want to do it. This isn’t theoretical; it is getting better and proving to be better.” The ACT study forecasts all Classes 7 and 8 tractors in the U.S. to be 30% electric by 2030. But Orange EV’s Ruderman said terminal tractors could be closer to full conversion then. “There are a lot of reasons why terminal tractors are an easier EV integration,” he said. “When you talk to fleets about EVs, one of the main concerns is range anxiety: What’s going to happen when I’m out on my route and I need to charge, or I was stuck in traffic, or a different route had more hills that consume more energy, and I’m afraid I can’t get back to home base to charge.” Since most terminal tractors never leave the yard, they are never far from a charging station, Ruderman noted. So opportunity charging, like what NACFE laid out in its study and Albertsons is putting into practice, is enough time to keep a yard EV running in a 24/7 operation. Add in that regenerative braking also charges the tractor. “It turns the frequent starts and stops in the yards into an advantage,” Ruderman said. For fleets interested in getting started or increasing their sustainability efforts, the terminal is a prime place to start. “If you look at the EV market, technology at the yard tractor level is here today and it’s performing well,” Fleet Advantage’s Barner said. “Expanding that technology out to the regional final mile will be the next step.” It was a great place to start for Albertsons, which has 1,400 Class 8 trucks nationwide and its private fleet employs 2,500 drivers. “Fleet sustainability remains top of mind every year as we plan for capital for fleet equipment and infrastructure improvements, as well as foster employee satisfaction,” Burke explained. The company has more than 1,700 stores in 34 states and the District of Columbia. Along with . “Albertsons Companies is committed to integrating sustainability into our everyday business decisions, and that includes reducing emissions within our own operations and our supply chain to help tackle climate change,” Burke said. “We strive to lower our emissions in many ways such as improving fuel efficiency in our trucks, switching to LEDs that use less electricity, and harnessing renewable energy such as wind and solar.” Its over-the-road tractors are all certified by the U.S. Environmental Protection Agency’s for meeting highway transportation sustainability and efficiency standards. “We will continue to explore, pilot, and purchase zero-emission and alternative fuel on-road tractors and refrigeration units for a more sustainable fleet profile while maintaining operational output and deployment across the network, when feasible,” Burke added. Despite supply chain problems plaguing some manufacturers, Ruderman said Orange EV delivers tractors and chargers about 90 days after orders. The OEM has fleet customers in 24 states and expects its market saturation to grow this year. “The broader message is that EV yard trucks are proven,” Ruderman said. “It’s past the experimental stage. We have almost 400 of them in the market across 100 different fleets, different duty cycles, and different parts of the country—in warm weather, in cold weather. The time is now to have that conversation about where to start.” Published: { "@context": "", "@type": "ImageObject", "contentUrl": "", "contentlocation": "United States", "url": "", "name": "orange_ev_albertsons_terminal_tractor.624d8ee6c8246", "description": "Albertsons Orange EV Truck, as seen in FleetOwner", "provider": { "@type": "Organization", "name": "Orange EV", "url": "", "image": "" } }

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