Everything you need to know about electrification of transport fleets
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Back in 20th-century Britain, it was common to see Milk Floats – those small, noisy trucks delivering fresh milk to doorsteps every morning. These little trucks went electric, and thus silent, in the mid-20th century, setting the stage for today’s short-haul electric fleets. While Milk Floats are a thing of the past, the need to electrify transport fleets is more crucial than ever to combat air pollution and reduce fossil fuel costs.
Why electrify transport fleets?
Fleet vehicles are the backbone of the transport industry. Unlike passenger cars that run only when needed, fleet vehicles are on the road most of the day. Because of their high usage, these fossil-fuelled vehicles significantly contribute to emissions. In fact, a 2023 survey by Accenture found that the transport sector accounts for 25% of global carbon emissions, with 75% of that coming from vehicles on the road.
Electrifying these fleets is a powerful way to cut emissions and save on fuel costs. Electric vehicles (EVs) have lower maintenance costs, and electricity rates can be more favorable, especially during off-peak hours. Governments worldwide are also pushing for fleet electrification to speed up the transition to zero-emission transport. However, fleet electrification is not just about switching from vehicles with internal combustion engines (ICE) to electrically powered ones. It demands a large, reliable network of charging stations, digital tools for tracking and routing and more. Here’s what you need to know.Fleet Electrification 101
On average, an electric truck can cover about 200 miles on a full battery. To keep an electric fleet running smoothly, each truck needs a full battery at the start of the day, as well as proper routing, access to charging stations and maintenance facilities. Balraz Singh, EV Segment Lead at TomTom, offers some helpful advice: “Drivers and fleet managers must plan routes to avoid running out of battery power before reaching the vehicle’s destination. The vehicle should have enough range to cover the daily travel distances required for the fleet’s operations.” For last-mile delivery trucks, which typically travel shorter distances, charging en route isn’t necessary. However, for long-haul vehicles, an optimized charging network is crucial.
Here’s a quick checklist for fleet electrification: - Ensure charging stations are available during vehicle downtime. Studying routing and parking habits can help find the best charging locations.
- Comply with regulatory requirements. For example, fleet EVs in California need clean-air vehicle stickers to access certain areas. Documentation on EV-specific driver training is also mandatory in many states.
- Educate drivers on how to maximize EV range, including using regenerative braking instead of traditional braking.
- Take advantage of financial incentives offered by governments for manufacturing, owning and maintaining electric fleet vehicles.
Digital tools for route planning
Meticulous planning is key for smooth long-term operations.
Renu Jinturkar, Strategy Manager of Product Marketing at TomTom, explains that the choice between the fastest or shortest route and the nature of the cargo can heavily influence logistics planning. “Route planning involves juggling a lot of data,” she says. “For EVs, you must also consider spots for lunch breaks where the driver can charge the vehicle within an hour.”Digital tools are essential for collecting data, providing real-time updates, and planning routes. Software can help monitor battery levels remotely, locate nearby charging stations, and adjust routes accordingly. Accurate GPS and smart route-planning software can help avoid unexpected challenges such as traffic jams or road closures.
- TomTom: Offers EV-specific routing that considers battery range and real-time traffic, highlighting charging stations to assist drivers in effective route planning.
The charging game
Planning a fleet’s route should also consider the charging routine. An average fleet EV can be fully charged overnight (6-8 hours) with low DC powers of 50-100kW. Most short-haul fleet vehicle charging is done at the depot, either overnight or during break hours in the day. There are also alternatives.- Long-haul trucks can do overnight charging at depots, taking advantage of lower electricity rates at night while aligning well with their driving and rest schedules.
- EV fleet drivers can also use fast chargers at members-only charging stations along the route when they need to take mandated breaks.
- Public chargers along highways can cater to on-the-go charging, much like petrol/gas stations do for ICE vehicles.
Charging infrastructure is constantly expanding, and governments are actively working on improving it. The European Union mandates that from 2025, fast-charging stations of at least 150kW must be installed every 60km (about 37.28 mi) along the EU’s main transport corridors. In the US, there are over 64,000 EV charging stations, and the federal government has allocated $7.5 billion to support EV infrastructure development. EV charging infrastructure is also becoming increasingly standardized to ensure interoperability and ease of use.
Concerns about charging will diminish with stronger electric batteries that guarantee longer travel distances on a single charge. Currently, Level 1 AC Charger gives 20-40km/hour charge, while Level 2 AC Charger gives 40-120km/hour charge and Fast DC Charger gives full-charge to your battery in less than 30 minutes.Innovations are already enhancing battery capacity. According to the International Energy Agency (IEA), the average range of new light commercial vehicles increased by 55% between 2015 and 2023. Electric fleet adoption is amplified by advancements in battery technology. The fact that the number of new electric truck registrations in the EU in 2023 increased by 321.7% compared to 2022 demonstrates this.
Choosing the right ride
Choosing the right kind of EV is also an important consideration and depends on the fleet’s intended use. For example, Picnic, an e-supermarket startup in Amsterdam, uses e-vans designed specifically for their needs. These vans are 1.30 meters wide, run 100 kilometers (62 miles) on a single charge and make deliveries from Picnic’s hubs across the city, covering every street once a day. Long-distance deliveries require EVs with a much greater range. Balraz explains, “Amazon needs EVs with around 300 kilometers (186 miles) of range for transfers from the airport to the warehouse and between fulfilment centers. For last-mile deliveries, EVs need sufficient range for routes usually less than 60km (about 37 miles) per day and the capacity for specific package dimensions. They also require navigation for route planning and real-time delivery tracking as per EV-specific regulations.”
Multiple fleet EV models are emerging to meet these various use cases. Volvo is working on short-haul EV trucks, while Amazon (in partnership with Rivian) and BrightDrop are focusing on developing last-mile vehicles. According to a report from S&P Global, electric cargo vans are growing in popularity, especially among fleets like Amazon, Walmart, Penske and FedEx for last-mile delivery.
The cost factor
Initially, EVs do cost more than internal combustion engine (ICE) vehicles. However, as with any major business shift, fleet electrification demands a change in mindset. Balraz points out that electric trucks require less maintenance and repairs due to fewer moving parts and the lack of an internal combustion engine. "This results in a longer lifespan for the vehicle and better return on investment," he adds.We're still not sure how EVs depreciate, but leasing can protect you from rapid loss of value. Partnering with Electrification-as-a-Service providers can also ease the financial transition. They cover maintenance, supply and manage EVs and charging infrastructure, and provide related services for a fixed subscription. For example, Geotab’s EV fleet management solution offers end-to-end support for electric fleets, including leasing electric vehicles, for a single fee.
Moreover, EV battery prices are falling. Research firm Energy Innovation predicts that electric trucks will soon be as affordable as diesel ones, thanks to decreasing battery costs. Automation in the production process is also driving down labor costs, leading to high-quality, low-cost electric trucks. Leading manufacturers like Volvo, Tesla, BYD, Nissan, Chevrolet, BMW, Ford, and Volkswagen are aggressively working on this.
Electric vehicle advancements will help fleets not just cut costs but also make their operations eco-friendly.The journey has begun
What once seemed like a futuristic dream is now becoming a reality. Wireless EV charging roads, which wirelessly power up EVs while they're on the move and potentially extend their range, are being developed. Electric roads take this idea further by integrating special elements into the road surface for continuous power transfer to EVs. Furthermore, battery swapping stations allow quick exchanges of depleted batteries for fully charged ones. These cool advancements are all about tackling range anxiety and making EVs more convenient. The IEA expects the growth in electric fleets to displace six million barrels of diesel and gasoline per day by 2030. This shift points to a more sustainable industry. With more EVs on the road and the necessary infrastructure expanding quickly, the wheels of this revolution are well in motion. * Required field. By submitting your contact details to TomTom, you agree that we can contact you about marketing offers, newsletters, or to invite you to webinars and events. We could further personalize the content that you receive via cookies. You can unsubscribe at any time by the link included in our emails. Review our privacy policy.