Posts Tagged “electric trucks”
The Biden administration recently allowed California to have the legal authority to require half of all heavy duty trucks sold in the state to be electric by 2035.
The rule would apply to tractor trailers, garbage trucks, cement mixers and other heavy commercial vehicles. It comes soon after California passed regulations requiring all passenger vehicles sold there to be electric by the same timeline.
It’s all part of an effort by California to reduce carbon dioxide emissions.
According to The New York Times, the legal waiver from the Environmental Protection Agency allows California to step ahead of new federal standards on climate warming truck pollution, which the Biden administration plans to release later this year. In December, the EPA announced a federal rule to cut nitrogen oxide from heavy vehicles, the first time in two decades that it has tightened tailpipe emissions from trucks.
“This is a moment to mark because it’s a preview of the order of magnitude of the change in the industry,” Gavin Newsom, the Democratic governor of California, said in an interview with The Times. “There’s a power in these waivers and that power is emulation. We adopt through these waivers the principles and policies that lead to innovation and investment.”
Right now, less than 2 percent of all heavy trucks sold in the U.S. are electric, so the new rule will put stress on the transportation industry if it remains in place.
“A lot of the California truck rules that have been adopted and enacted recently are starting to push truck drivers out of the state,” said Jay Grimes, director of federal affairs for the Owner-Operator Independent Drivers Association, which represents truckers, in The Times story. “Drivers don’t want to work in California anymore. They’re skeptical of the rapid timeline on this transition to electric trucks. Can a trucker get a charge that will take them on a highway for two or three days? Is the technology ready for prime time?”
The Times reports that a legal fight is already underway against the rule.
“Republican attorneys general from 17 states are challenging California’s ability to enact state pollution standards that are tougher than federal standards,” the Times writes. “That case, Ohio vs. EPA, is set to be heard in the United States Court of Appeals for the District of Columbia Circuit in May. Regardless of the decision in that case, it is expected to be appealed to the Supreme Court.”
The appeal of big rig electric trucks may be even bigger than thought….Plus, Del Monte completes its acquisition of Mann Packing.
Electric Trucks
Testla Inc. is the maker of the long-distance class-8 electric trucks scheduled to be introduced in 2019. Now some fans of the new truck believe they will pay off the difference between electric and diesel trucks in as little as 18 months. Jim Monkmeyer, president of DHL Supply Chain, who is one of the first to order the electric trucks, recent told Reuters the new trucks could pay for themselves this fast because of energy usage and low maintenance costs. Engines for electric trucks are said to be much simpler in relation to the number of parts and complexities of the parts.
Additionally, based on the assumption diesel fuel costs will remain high, plus costs are projected to decrease for electric trucks, the saving could be even more than originally anticipated. anticipated.
Sysco Corp. of Houston already contracted to by 50 tractor-trailers, while Meijer Inc. of Grand Rapids, MI is set up for an electric truck test drive.
Del Monte/Mann Acquisition
Fresh Del Monte Produce of Coral Gables, FL has finalized its acquisition of Mann Packing Co. Inc. of Salinas, CA for about $361 million.
Del Monte has been for years associated primarily with bananas, but more recently has been diversifying its business. Purchasing Mann accelerates its efforts to become more invested in fresh-cut. Its sales in the segment for 2017 were $607.8 million, up 18 percent from the previous year.
Mann’s product offering is roughly 50-50 between bulk vegetables and fresh-cut. Del Monte recently spelled out some of its plans to incorporate Mann into its operations. It was noted Mann is mainly on the West Coast with much less of a presence in the Northeast, but has little activity in the Southeast and Southwest of the U.S. Thus, Del Monte is looking to develop new business in those regions. It also is looking leverage its infrastructure across the U.S. to improve marketing and distribution of Mann Packing products.