How EV Semi Trucks May Raise Freight Cost
Innovation in the trucking industry is bound to happen sooner or later. The advent of electric vehicles (EVs) has caught up with the freight sector, and more companies are considering transitioning to the new technology. While EV semi-trucks are environmentally friendly and have long-term cost-saving benefits, they will most likely raise freight shipping cost in order to cover the investment of new trucks.
The trucking industry has hesitated to make a transition to EV due to the high initial cost. After all, acquiring EV semi-trucks, is expensive. In fact, they are significantly more expensive than traditional diesel trucks. Let’s explore the possible impact of a transition to electric trucks on your possible freight increase.
Higher cost of EV semi-trucks
The high initial purchase price of EV semi-trucks is a big financial obstacle. It is the main reason why freight companies are hesitant. Currently, an electric semi-truck’s cost ranges from $150,000 to $300,000. On the other hand, an average diesel truck’s cost is roughly $100,000. Obviously, there is a considerable difference.
To cover the initial investment cost, companies that adopt EV semi-trucks would need to adjust their freight rates. Despite, the long-term savings the transition to EV semi-trucks bring about short-term financial constraints.
Charging infrastructure installation cost for EV Semi freight trucks
Aside from the high EV semi-truck’s purchase, there is another significant investment. The actual charging system is not included with the trucks purchase. Eventually, charging stations will become common for semi trucks. However, installing them in-house is an entirely different story.
Freight companies that do not have in-house charging available are at a considerable disadvantage. Currently, data on the true distance a truck can achieve is suggestive at best. However, a conservative tally of a fully loaded semi is roughly 280 miles. This is less than ideal to replace long distance over the road freight deliveries.
Positive long-term benefits of EV semi freight trucks
Several long-term benefits come with using EV semi-trucks that promote financial savings. EV trucks are significantly more energy-efficient than diesel trucks, with average EV semi-trucks achieving a range of up to 500 miles in optimal conditions. In contrast, a an average diesel’s 200 – 300 miles.
Moreover, for most companies, the trucking fleet is a significant contributor to CO2 emissions. By adopting EV semi-trucks, they could significantly reduce their carbon footprint. As well, qualify for tax credits and other incentives by adopting EV technology.
Increased demand for freight industry services
Finally, with the implementation of EV semi-trucks, there may be increased demand for freight industry services.
The push for sustainability in recent years has revealed a shift in consumer behavior, with a larger proportion of shoppers prioritizing eco-friendliness and sustainability when making purchasing decisions. This move towards more sustainable solutions would increase the demand for companies to use eco-friendly options such as EV semi-trucks.
As innovation and technology develop in the freight industry, the adoption of sustainable and eco-friendly solutions becomes increasingly critical. While EV semi-trucks may be costly in the short term, they offer several potential long-term benefits for the freight industry.
The transition to EV semi-trucks may raise freight costs to cover the investments, but its benefits extend far beyond financial concerns to include environmental conservation and building a sustainable future.