Home » Economics » Transitioning Fleet Trucks to Electric Raises Costs by up to 114 Percent, Report Warns Mandating EV trucks in today’s market leads to even ‘more supply chain disruptions,’ said an industry expert. Friends Read Free 596 291 Save Transitioning Fleet Trucks to Electric Raises Costs by up to 114 Percent, Report Warns Trucks sit idle as they block the entrance to a container terminal at the Port of Oakland in Oakland, Calif., on July 21, 2022. (Justin Sullivan/Getty Images) Naveen Athrappully By Naveen Athrappully 5/11/2024 Updated: 5/12/2024 Print X 1 0:00 Transitioning conventional truck fleets to electric vehicles (EVs) pushes up annual operational costs, which subsequently increases economic inflation, according to a recent report from transportation and logistics firm Ryder. Florida-based Ryder analyzed the potential cost of transportation if internal combustion engine trucks are converted to EVs. There is a 5 percent cost increase for light-duty EVs and a 94–114 percent increase for heavy-duty trucks, the May 8 report states. For a fleet of 25 mixed vehicles—light-, medium-, and heavy-duty trucks—costs surge by 56–67 percent. As transportation costs have a direct bearing on the price of goods sold in markets across the country, Ryder estimates such increases to eventually add about 0.5–1 percent to overall price inflation in the economy. “There are specific applications where EV adoption makes sense today, but the use cases are still limited. Yet we’re facing regulations aimed at accelerating broader EV adoption when the technology and infrastructure are still developing,” said Karen Jones, executive vice president and head of new product development for Ryder. “Until the gap in TCT [total cost to transport] 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.” In California, the annual TCT increase for a heavy-duty EV tractor was approximately $315,000, with the number rising to more than $330,000 in Georgia. In both cases, equipment costs were the biggest contributor to the increase, rising by 500 percent. RELATED STORIES Amazon to Roll Out New Fleet of Electric Trucks in Southern California 5/8/2024 Amazon to Roll Out New Fleet of Electric Trucks in Southern California China Benefits From Unscientific Electric Vehicle Mandates 5/3/2024 China Benefits From Unscientific Electric Vehicle Mandates Ryder noted there were 16.4 million Class 3 to Class 8 commercial vehicles in operation in the United States, out of which only an estimated 18,000 EVs have been deployed. “Therefore, if companies are required to convert to EVs in the near future, availability and production of EVs may be far less than the vehicles needed to run America’s supply chains,” the report states. The report points to a statement made by Clean Freight Coalition (CFC) that there is currently no network in the United States where truck drivers can take rest breaks and charge their EV batteries at the same time. Despite Plummeting Electric Vehicle Sales, Biden Administration Will Not Change EV Policy: Jean-Pierre Play Video CFC estimates that electrifying the United States’ current commercial vehicle fleet would necessitate a $1 trillion investment. Moreover, the International Council on Clean Transportation calculates that almost 700,000 chargers will be required to accommodate the 1 million Class 4, 6, and 8 electric trucks expected to be deployed by 2030. This alone will consume 140,000 megawatts of electricity per day, which is equivalent to the daily electricity needs of roughly 5 million U.S. homes. “Ryder’s analysis underscores the reasons EV adoption for commercial vehicles remains in its infancy. In addition to the limited support infrastructure and EV availability, the business case for converting to EV for most payload and mileage applications, is extremely challenging,” the report reads.