Business

LOS ANGELES — Volvo Trucks North America said this week that it is closing out its LIGHTS (Low-Impact Green Heavy Transport Solution) project — a three-year initiative that brought together 14 public and private partners to design and implement a blueprint to support the ecosystem necessary to deploy battery-electric trucks and equipment at scale. During the project, which ran from 2019 to 2022 in California’s South Coast Air Basin, Volvo Trucks deployed its first Class 8 pilot Volvo VNR Electric trucks to fleet operators, allowing company officials to collect real-world operating data and customer feedback ahead of announcing its commercial model in December 2020. “By working closely with an extraordinary group of public and private partners through the Volvo LIGHTS project, we were able to validate key processes around Class 8 battery-electric truck adoption for commercial transport segments and identify challenges that needed to be addressed for widespread market introduction,” Peter Voorhoeve, president of Volvo Trucks North America, said. “The most valuable takeaway for our team was really experiencing the value of close cross-functional and cross-organizational collaboration as we continue to drive innovation and develop new solutions for sustainable transport.” During the multi-year project, Volvo Group North America collaborated with each organization to develop programs and best practices that would help lay the foundation for the successful commercialization of battery-electric freight trucks, including: Identifying ideal routes for electrification — Volvo Trucks deployed 30 Volvo VNR Electric trucks to 11 fleets to operate in their daily Southern California fleet routes to assess many factors that may impact vehicle range, including topography, ambient temperature, traffic patterns, driving styles, and more. The insights gained were informative as Volvo Trucks introduced the Electric Performance Generator (EPG), its route planning tool which enables fleet managers to simulate real-world routes for their VNR Electric trucks.   Comprehensive dealer support — TEC Equipment, Volvo Trucks’ largest West Coast dealership, provided uptime support to the fleet customers that leased VNR Electrics through the Volvo LIGHTS project. The hands-on experience gained during the project led to TEC Equipment Fontana becoming the nation’s first Volvo Trucks Certified Electric Vehicle Dealer and spurring the rollout of certified dealerships across North America.   Reliable and cost-effective charging infrastructure — Multiple project partners collaborated with Shell Recharge Solutions and SCE on the installation and energization of 58 networked public and private electric vehicle charging stations, identifying opportunities to streamline processes, shorten installation timelines, and refine existing laws related to allowing entities other than utilities to re-sell electricity for EV charging. SCE also conducted a site grid system impact study to help plans for supporting a future of fully electrified goods movement.   Technician training programs — Rio Hondo College and San Bernardino Valley College both collaborated with Volvo Trucks to launch heavy-duty electric truck technician training programs, with a combined total of more than 45 graduates throughout the project.   First responder training programs — Throughout the project, Reach Out, a local outreach organization worked with Volvo Trucks to keep community stakeholders informed about the project. This partnership helped facilitate the development of training materials for first responders to raise awareness about the high-voltage components on the Volvo VNR Electric and develop the first responder safety document that is now publicly available from the National Fire Protection Agency. “This project shows how important it is for public and private entities to work together to bring zero-emission technologies and infrastructure to the nation,” Ben J. Benoit, chair of South Coast AQMD’s Governing Board, said. “Now that the project is coming to an end, we look forward to seeing these cleaner trucks on the road, and the impact they will have on air quality.” Together with the Volvo Group, Volvo Trucks hosted a Volvo LIGHTS Roundup on Aug. 23 at the Ontario Convention Center in Southern California to share exclusive insights from Volvo LIGHTS project partners on how to successfully scale truck freight electrification. “Zero emission trucks work — as this project shows — and we need strong rules, in many states and federally, promoting them. This project shows that this technology can serve business and deliver protections that will benefit the health of our communities that need it the most,” Craig Segall, California Air Resources Board deputy executive officer for mobile sources and incentives, said. The Volvo LIGHTS project was made possible by a $44.8 million award to South Coast AQMD from the CARB as part of California Climate Investments (CCI), a statewide initiative that puts billions of Cap-and-Trade dollars toward reducing greenhouse gas (GHG) emissions, strengthening the economy, and improving both public health and the environment. South Coast AQMD also contributed $4 million from its Clean Fuels Fund. Volvo Group and its partners contributed $43 million in matching funds for a total project of $91 million. Over the course of the project, Volvo garnered multiple awards, including: the 2020 Innovation Award from Breathe Southern California; the 2020 Blue Sky Award from the California State Accounting and Reporting System; the 2021 Climate Leadership Award from the Center for Climate and Energy Solutions and The Climate Registry; the 2022 Innovation Clean Air Technology Award from the South Coast Air Quality Management District; and the 2022 Outstanding Achievement in Sustainability from the Southern California Association of Governments. A Volvo LIGHTS Lessons Learned Guidebook was produced to documents key insights gained as the project partners designed and implemented innovative programs and technologies critical for the widescale success of battery-electric freight movement. To download the 22-page guidebook, Bringing Battery-Electric Freight Trucks to Market: From Demonstration to Commercialization, visit https://www.lightsproject.com/downloads. To learn more about the Volvo LIGHTS project and to access photos, videos, and other resources, visit www.lightsproject.com To learn more about Volvo Trucks North America and the Volvo VNR Electric, visit the company website.

COLUMBUS, Ind. — The top line on the Class 8 Tractor Dashboard was unchanged in June, the fourth month of moderately downbeat readings. This according to ACT Research’s recently released Transportation Digest. “Our interpretation is a gradual erosion for Class 8 market demand in the second half, but no ‘spiral down’ and certainly not a ‘cliff event’,” said Kenny Vieth, ACT’s President and Senior Analyst. He continued, “With talk of recession in the air, we think the Dashboard reading, while negative, still suggests a better outcome for Class 8 than was the case in our last two recessions (COVID 2020 and the 2008-2009 Great Recession).” When asked about the take-away, Vieth concluded, “Looking at the components that comprise the index, we did see some very modest improvement in the freight-related metrics, with two categories exiting negative territory into neutral. However, ‘positive’ readings were cut in half in June, with just two of fifteen variables in positive territory. Combined with six indicators in negative territory, the Dashboard stood at -4 for a third consecutive month.” Vieth also mentioned that “for readers who are new to this framework or want a refresh, we believe that the dashboard offers a three-to six-month forward-looking window into conditions in the U.S. tractor market.”

TACOMA, Wash. — Speaking jointly on a recent panel at the Green Transportation Summit and Expo, representatives from Daimler Truck, Navistar, PACCAR and Volvo Group outlined a shared vision for an industry-wide transition to medium-and heavy-duty zero-emission vehicles (ZEV). “ZEV commercial vehicles are in production and ready for use in many applications,” Dawn Fenton, vice president of government and public affairs at Volvo Group North America, said. “But the ZEV transition relies on more than OEM innovation. To get these vehicles onto roads, our nation must prioritize a coordinated and comprehensive strategy, encouraging ZEV uptake and addressing gaps in charging and utility infrastructure.  For this reason, Volvo Group applauds the recent adoption of the Inflation Reduction Act and the Infrastructure Investment and Jobs Act which provide meaningful federal support for heavy-duty zero emission vehicle and infrastructure deployment.” The four OEMs are founding members of Partners for a Zero Emission Vehicle Future, a growing coalition of stakeholders from across the transportation industry that considers ZEVs to be the future of commercial transportation. PZEVF (Partners for a Zero Emission Vehicle Future) members include trucking associations, private operators, and other stakeholders committed to meeting environmental and economic goals of medium-and heavy-duty ZEV deployment. Members of the panel addressed a wide range of issues, including the benefits of a coordinated national approach to ZEV deployment, the importance of point-of-sale EV sales incentives to defray upfront purchase costs for fleets and operators, the challenges facing electric utilities tasked with upgrading grids and the interplay of federal and state legislation in aligning policies and programs to support deployment targets. The Inflation Reduction Act, which contains tax credits for the purchase of medium-and heavy-duty ZEVs and installation of charging infrastructure, was cited by panelists as an example of policy progress, who cautioned more must be done. “In the early stages of the industry’s transition to zero emissions, grants and incentives are essential to help operators and owners offset initial higher purchase costs and encourage deployment of these vehicles on our nation’s roads,” said Alec Cervenka, Kenworth Zero Emissions sales manager, who represented PACCAR on the panel. “Down the road in the future, as volumes increase and the industry brings to bear economies of scale, we eventually expect ZEV technology to provide a Total Cost of Ownership on par or better than the current diesel truck.” Panelists pointed to California as an example of medium-and heavy-duty ZEV leadership, noting that more needed to be done to achieve the aggressive ZEV adoption goals that many states are pursuing, with investment in charging infrastructure as a key example. “We are committed to zero emission trucks and buses,” Kevin Maggay, senior manager of public policy at Navistar, said. “Successful build out of charging and refueling infrastructure is one of the key drivers to successful adoption of zero emission technologies. As states look to grow deployment of commercial vehicle zero emission technology, infrastructure build out should lead and keep pace with vehicle deployments to drive a smooth technology transition.” Despite the challenges ahead, OEM representatives were adamant that, through collaboration and cooperation among public and private stakeholders, the end goal of ZEV commercial truck fleets was achievable. “From consumers to policymakers to OEMs, it is clear the nationwide transition to ZEVs is necessary and imminent,” Kevin Otzenberger, eMobility product marketing senior analyst at Daimler Truck North America, said. “We must learn from the earliest lessons this nascent transition has to offer in order to make the long-term, nationwide deployment of ZEVs a success.”  

U.S. sales of new Class 8 trucks remained above the 20,000 threshold for the third consecutive month in July, reaching 20,919 according to data received from ACT Research. In 2021, three total months exceeded the 20,000 mark, including December, which is typically the biggest sales month of the year. This year, sales lagged behind last year’s pace until finally catching up in June and then pulling ahead in July. For the first seven months of 2022, OEMs reported sales of 136,165 on the U.S. market compared to 131,571 at the same time last year — an increase of 4,594 trucks (3.5%). Compared with an exceptionally strong June, however, July sales dropped by 1,931 units for a decline of 7.6% month over month. Contrasted with July 2021 however, sales increased by 20.8% with delivery of an additional 3,595 trucks in July this year. Note that June is the final month of the second quarter; quarter-ending months are typically strong as carriers adjust their numbers in preparation for SEC filings. Clearly, truck manufacturers are finding solutions for supply chain issues that have held back production since the COVID-19 pandemic began. However, OEMs are still running behind their maximum output levels, so supply chain problems still exist. Despite moving more new Class 8 trucks in the past three months, a North American backlog of over 200,000 units remains. Some of those — about 20,000 — are orders for 2023 models. The OEMs, however, won’t be able to finish the orders for 2022. “There are about 135,000 build slots left for this year,” said Kenny Vieth, president and senior analyst at ACT Research. “There are about 180,000 orders for trucks this year, so there are about 45,000 more orders to be built than they can build before they change over to the 2023 models.” North America Class 8 net orders fell to 11,400 units, according to a release by ACT. A large reason that may be the manufacturers themselves declining to take further orders for 2023. The current backlog already stretches well into 2023, and with current inflation rates, it is undoubtedly difficult to predict the price of a new truck a year from now. Builders are understandably reluctant to lock in truck orders at today’s pricing, knowing that their costs for parts and materials will certainly rise. While inflation is driving trucking costs skyward, freight rates are going the opposite direction. Spot rates continue to fall, according to DAT Trendlines. The service reported that dry van rates fell 1.7% in July from June and have declined 3% compared to July 2021. Refrigerated spot rates have fallen further, down 1.6% from June but down 4.3% compared to July 2021. Flatbed July rates fell 4.3% from June but are still 6.1% ahead of July 2021 rates. Weekly reports so far in August show further declines. Contract rates typically follow spot rates, but with a delay of months; average contract rates are now falling too. While economists debate whether the economy is in recession, ACT’s Vieth thinks it’s already here for trucking. “Our call was that we are in a freight recession, starting in the second quarter,” he said. One industry factor that isn’t following the usual course is order cancellations. Typically, when rates drop, buyers start cancelling orders to avoid buying trucks without enough freight to support them. “The last four months, I can’t recall a four month period with lower cancellations without going back to like 2010 when nobody was ordering trucks and there were no trucks in the backlog,” he said. ACT is predicting an economic recession during the first half of 2023. Whether the recession is already here or is coming in six months, buyers haven’t been scared away from ordering new trucks. As usual, Freightliner led all sellers with July U.S. sales of 7,855, according to data received from Wards Intelligence. That number represents a decline of 3.4% from June sales but a 34.4% increase over July 2021. In July, Freightliner sold 38.3% of the Class 8 trucks sold in the U.S. Freightliner sibling Western Star was the only OEM to sell more Class 8 trucks in July than June, although the manufacturer’s market share is considerably smaller at 2.7%. The company reported sales of 552 trucks in July compared with 450 in June for an increase of 22.7%. International sales of 2,229 were down 23.8% from June sales of 2,929. The company also represents the only OEM that saw worse sales numbers in July than in the same month a year earlier, selling 394 fewer Class 8 units for a 15% decline. International was responsible for 10.9% of Class 8 sales in July. Volvo’s sales of 2,123 trucks in July was a decline of 20.8% from June’s 2,679. However, July 2021 was a poor month for the OEM with just 888 Class 8 trucks sold, so July 2022 represents a whopping 139.1% increase. Sales of Volvo-owned Mack Class 8 trucks declined 17% in July, dropping from June’s 1,560 to 1,295. Compared with July 2021, Mack sales increased by a modest 43 trucks (3.4%). In July, Mack sales represented 6.3% of the market while sibling Volvo took 10.3% Kenworth reported sales of 3,067 trucks, down 4% from June’s 3,194 but up slightly (1.2%) from the 3,032 trucks sold in July 2021. Kenworth sales took 15% of the U.S. Class 8 market in July. Peterbilt sales reached 3,392 in July, down 0.8% from June’s 3,418 and up 24% from July 2021 sales of 2,735. Peterbilt took 16.5% of the U.S. Class 8 market in July. Together, the PACCAR siblings were responsible for 31.5% of the market. Parts and components, especially semiconductors, seem to be in greater supply now than earlier in the year but supply chain issues aren’t over yet. Carriers are still profiting from the higher freight rates and are likely to keep investing in new equipment as long as there is money to make. Possible headwinds are inflationary pressures, including increasing interest rates that will impact purchasing power for those who finance equipment purchases, continued supply chain issues, and falling freight rates.

KNOXVILLE, Tenn. and MOUNTAIN VIEW, Calif. — Pilot Company and Kodiak Robotics, Inc. are collaborating to develop autonomous truck services at Pilot and Flying J travel centers. Pilot Company and Kodiak are in the process of creating an autonomous truck port in the Atlanta area to evaluate potential service offerings and explore scalable solutions, according to a joint new release from the two companies. These services will include spaces to pick-up and drop-off autonomous trucking loads; conduct inspections; maintain and refuel trucks and the ability to transfer data for processing, such as feature development and mapping. “Pilot Company is committed to providing best in class service to its customers today and going forward,” John Tully, vice president of strategy and business development at Pilot Company, said. “In making this strategic investment, we understand that our customers have a need for real solutions that help address the growing demand to move goods and Kodiak is a strong leader in the autonomous trucking space. As we explore the future of autonomous trucks and how we can best support these customers, we will continue to be the travel center network that the trucking industry and professional drivers can count on for the services and care they need.” Kodiak officials said that combining Pilot Company’s nationwide network of travel centers and services with Kodiak’s technology “will play a crucial role in the deployment of autonomous trucks.” “Pilot Company’s industry-leading network of highway-adjacent travel centers provides unprecedented geographic reach for the launch and scale of Kodiak’s fast-growing network of autonomous trucking lanes,” Don Burnette, founder and CEO of Kodiak Robotics, said. “Their customer first approach, with a focus on technology, scale, and infrastructure, makes Pilot Company an ideal partner to support the service and maintenance of self-driving trucks nationwide. We are honored to have Pilot Company as an investor, strategic partner, and supporter of our continued commercial footprint growth.” Kodiak entered a growth phase in 2022, expanding its service and partner network. In July, the company announced a partnership with 10 Roads Express, a provider of time sensitive surface transportation for the U.S. Postal Service, expanding the company’s service to Florida. Earlier this year, Kodiak announced a new route between Dallas and Oklahoma City with CEVA Logistics and a route between Dallas and Atlanta with U.S. Xpress. The company has been delivering freight commercially since 2019 and currently has six routes that run regularly between Dallas and Houston, Austin, San Antonio, Atlanta, Oklahoma City and Jacksonville, Florida.