CR England - Amerit Fleet Solutions

Transcription

CR England - Amerit Fleet Solutions
AMERIT FLEET SOLUTIONS AND FLEET FINANCIALS PRESENT
VOL. 3
EXCLUSIVELY FOR TOP FLEETS IN NORTH AMERICA
How
C.R. England
Optimizes Fuel Efficiency
WHY YOU SHOULD DEMAND
ACCURATE FLEET DATA
FERRELLGAS PUSHES PAST
WINTER PROPANE CHALLENGES
CLEANER HEAVY-DUTY TRUCK
TECHNOLOGIES ARE COMING
CONTENTS
4
Leading Highlights
8
Custom Maintenance: What You
Need, Where You Need It
Through purpose-built Fleet Service Centers
and other custom maintenance programs,
Amerit Fleet Solutions offers an answer to a
frequent fleet challenge in how to effectively
maintain a sprawling fleet.
4
10 How C.R. England
Optimizes Fuel Efficiency
To utilize various aerodynamic modifications
and other fuel reduction strategies, C.R.
England carefully researches, tests, pilots, and
observes all aspects to any project before
and after implementing.
14 Demanding Accurate Fleet Data
from Third-Party Suppliers
10
Amerit Fleet Solutions outlines the importance
of demanding comprehensive fleet data from
outside vendors. Don’t get caught with a
“black hole” in your fleet data and undermine
your fleet’s performance.
16 Ferrellgas Pushes Past
Winter Challenges
While delivering propane in the snow is
not uncommon for many Ferrellgas
drivers, this winter brought extra
challenges to the industry with high
demand, road closures, and supply issues
affecting routes.
16
18 State of Clean Technologies in
the Heavy-Duty Market
CALSTART President and CEO John
Boesel provides a breakdown of
heavy-duty powertrains and takes a look
at where hybrids, natural gas, di-methyl
ether and renewable fuels currently stand.
2
LEADING FLEETS
WINTER 2014
18
LEADINGFLEETS.COM • AMERITFLEETSOLUTIONS.COM
CEO VIEWPOINT
Unseen Hero in Winter Storms
A
By Dan Williams
CEO, Amerit Fleet Solutions
sk anybody on the street these
days and they will tell you a story
of how difficult and dangerous
this winter has been. When our country
is hit with record storms from early fall
to spring it makes the little details of ordinary life much more challenging. And
if life was hard for the average person,
operating a fleet in these conditions can
be a down-right magic trick!
I am proud that Amerit is often the
unseen hero in challenging times. As a
dedicated ally and partner, our mission
is to support our clients’ fleets as they
push to restore or continue services to
communities hardest hit by the savage
storms. We know first hand that extreme
conditions never sleep, and so neither
do we. When the weather gets tough,
our team gets going.
I would like to recognize the efforts of
the Amerit teams across the 20+ states
hit hardest by storms this winter. They
worked tirelessly around the clock to repair and return downed vehicles to service, keep generator pools running and
they even delivered fuel to fleet vehicles
when no one else would.
At Amerit, we pride ourselves on our
outstanding dedication to servicing our
customers. It is our mission to make the
challenging business of running a fleet
in the worst winter on record, a little
easier. The Amerit employees who went
above and beyond the call embody the
very best of what we all aspire to: dedication, service, excellence.
This issue of Leading Fleets is packed
full of information and articles that we
hope will act as a resource for you as
you make decisions for the coming
year and beyond. On page 16 you can
read about how Ferrellgas managed
its propane delivery fleet to meet the
record demands this winter and challenges the company faced with diesel
fuel gelling. Then, the cover story on
page 10 takes a deep dive into how
C.R. England is reducing its fuel use
through aerodynamics, idle reduction,
and driver recognition.
If the hardships this winter have made
you and your company think about the
economic impacts of global climate
change, you will find that the article
from John Boesel, President and CEO,
CALSTART on page 18 provides some
useful information about developments
in clean fuel technologies. And if you
are interested in learning more about
Amerit Fleet Solutions and how we reduce downtime and alleviate maintenance burdens, take a look at our article on page 8.
LF
Business and Editorial Office
3520 Challenger St., Torrance, CA 90503
Phone: 310-533-2400 Fax: 310-533-2503
E-mail: [email protected]
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LEADING FLEETS
WORRY-FREE FLEET MAINTENANCE
WINTER 2014
3
LEADING HIGHLIGHTS
FedEx Express Testing
Two Electric Technologies
I
n two electric initiatives, FedEx Express will test fuel cell
range extenders from Plug
Power and Nissan’s electric
compact cargo van, e-NV200.
Fuel Cell Range Extenders
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LEADING FLEETS
WINTER 2014
Photo courtesy of Nissan
FedEx Express is expected to
nearly double the amount of
service territory of some of its
electric delivery trucks once
Plug Power Inc., a power solutions company based out
of Latham, N.Y., completes
development of its fuel cell
range extenders.
In a $3 million project funded by the U.S. Department of
Energy, Plug Power is developing hydrogen fuel cell range
extenders for 20 FedEx Express
electric delivery trucks.
Smith Electric Vehicles is also
a project partner. The Smith
all-electric trucks currently
boast about an 80-mile charge.
FedEx Express has been using
Smith’s Newton Step Van in
the U.S. since mid-2012.
The finished range extender
will power the trucks with lithium-ion batteries and a 10-kWh
hydrogen fuel cell system.
“Early customer experiences
with electric delivery vehicles
have been overwhelmingly positive,” said Andy Marsh, Plug
Power CEO. “But only 1% of
these vehicles are electric today; we think that this range
extender provides the added
distance and quick refueling
capabilities needed to really
grow this market.”
This FedEx Express wrapped Nissan e-NV200 was on display at the 2014 Washington Auto Show.
Battery-Electric
Compact Cargo Van
FedEx Express will begin testing the Nissan e-NV200 under
real-world conditions in its
Washington, D.C. service area.
This test marks the first time
the vehicle will run in North
America. FedEx Express and
Nissan have conducted similar e-NV200 tests with fleets in
Japan, Singapore, the United
Kingdom, and Brazil.
The field tests will subject the
van to routine requirements of
a delivery vehicle. The results
will be used to help determine
the viability of using an EV in
this role in the U.S.
Rotating the Nissan e-NV200
into the delivery fleet is part
of the FedEx EarthSmart program, a global sustainability platform designed to guide
the company’s environmental
commitment in the communities where it operates. For Nissan, this effort aligns with its
“Blue Citizenship” corporate
social responsibility program
with a focus on increasing the
number of vehicles that emit
no greenhouse gases by exploring additional vehicle segments that EV technology may
be applied.
FedEx Express currently has
167 electric vehicles and 365
hybrid electric vehicles in the
U.S., France, Germany, Italy,
Japan, and China, as well as
the units that will be deployed
in Brazil starting in January. By
the end of FedEx’s fiscal year
(May 31, 2014), the company
said it plans to increase these
numbers to 222 and 393, respectively. From 2005 to 2012,
the introduction of this type of
vehicle in the fleet enabled the
company to save nearly 2.4 million liters of fuel.
Nissan e-NV200 is scheduled
to begin mass production later
this year in Europe, according
to the delivery company.
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AT&T’s Webber Named 2013
Fleet Executive of the Year
AT&T’s enterprise-wide policy
and operating effectiveness for
the company’s domestic and international fleet operations. He
oversees acquisitions, end-toend lifecycle management of vehicles and wheeled equipment,
fuel management, and provides
direction for the development
and implementation of the deployment of alternative fuels.
He also handles nationwide
emergency vehicle and generator staging, deployment, and
vehicle fueling during natural
disaster recovery efforts.
A panel of industry judges
evaluated submissions for the
award using several criteria, including cost-saving initiatives,
Photo courtesy of Automotive Fleet & Leasing Association
J
erome Webber, vice president
of global fleet operations for
AT&T, received Fleet Financials’ 2013 Fleet Executive of
the Year award, which recognizes exceptional leadership
by managers who have a title of
vice president or higher and/
or have other responsibilities
beyond fleet.
The award was presented
during the Automotive Fleet
& Leasing Association (AFLA)
2013 Annual Conference in
Scottsdale, Ariz. The 2013
Fleet Executive of the Year
award is exclusively sponsored
by The CEI Group and Fleet
Financials magazine.
Webber provides oversight of
At right, Jerome Webber, vice president of
global fleet operations for AT&T, received
the 2013 Fleet Executive of the Year,
presented at the Automotive Fleet & Leasing
Association 2013 Annual Conference. Ed
Bobit, founder of Automotive Fleet magazine,
congratulates Webber on the win.
policy setting, creation of innovative programs, and cultivation of fleet manager training
and management.
AmeriGas ‘Airborne Team’ Delivers
Propane to Hard-Hit Areas
T
Photo courtesy of AmeriGas
he AmeriGas “Airborne
to Rumbelow. In some states, disTeam,” a propane delivery
tricts only partially filled customvolunteer program that has
ers’ tanks to provide a limited
been around for more than a
amount of propane to as many
decade, sent 51 volunteers who
customers as possible. When
had put in 765 days assisting 31
more supply became available,
districts in need across 15 states,
return trips to finish filling those
as of mid-February.
tanks were added to an already
Generally, service techs depacked delivery schedule, creatployed for Airborne assistance The Toledo, Ohio AmeriGas Airborne Team.
ing a need for help in making
are those able to drive a bobtail
those deliveries.
and assist districts in dire need with deliveries.
Attracting Airborne volunteers can be chalThis year, for the first time, area safety advisors lenging, Rumbelow said. In the past, there hadn’t
also pitched in. “We have more than 40 area safe- been any incentives to reward drivers or to comty advisors who have been taken off their regular pensate district managers who sent their team
duties, and those who can drive were put into members across the country to assist. This year,
trucks,” said AmeriGas Supply Chain Vice Presi- the program was enhanced to include a bonus
dent Kevin Rumbelow.
for volunteers who leave their home locations
This is the first year Airborne employees were for two weeks or longer — and a budget adjustdeployed as a result of supply issues, according ment for the districts sending staff.
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LEADING FLEETS
WINTER 2014
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LEADING HIGHLIGHTS
Fleets Test
CNG Waters
S
Photo courtesy of SUPERVALU
UPERVALU and Con-way
Freight recently announced
new compressed natural gas
(CNG) additions to their overthe-road truck fleets.
SUPERVALU Adds 35 CNG
Trucks and Fast-Fill Station
Food for approximately 500 grocery stores in Virginia, Maryland,
Delaware, West Virginia, Washington, D.C., and North Carolina, is now delivered by a fleet of
CNG Class 8 Volvo trucks. The
fleet of 35 trucks is based out of
SUPERVALU’s Mechanicsville,
Va., distribution center.
To power the new trucks, Trillium CNG, a provider of CNG
fueling solutions, built and will
operate a fast-fill CNG station
at the Mechanicsville distribution center. Utilizing Trillium’s
fast-fill hydraulic intensifier, the
new station will fuel trucks at a
rate of 8-10 gallons per minute.
“This project is not only good
for the environment, but also
for the bottom line, as each
natural gas-powered truck will
cut greenhouse gas emissions
(GHGs) and reduce fuel usage
for our fleet,” said Mike Lech,
vice president of logistics for
SUPERVALU’s eastern region.
The conversion to natural
gas is expected to reduce the
fleet’s annual oil consumption
by more than 1 million gallons
and result in 1,300 fewer tons
of GHGs. In addition to the environmental benefits, the new
CNG fleet and fast-fill station
are expected to reduce SUPERVALU’s operating costs due to
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LEADING FLEETS
WINTER 2014
SUPERVALU now has 35 new CNG Class 8 Volvo tractors operating out of Virginia.
the lower cost of CNG fuel.
Volvo Trucks designed the
new trucks specifically to meet
SUPERVALU’s grocery hauling needs, and were all built at
Volvo’s Dublin, Va. plant.
SUPERVALU operates 20
distribution centers across the
United States and has slightly
more than 400 trucks in its national company-owned fleet,
excluding its Save-A-Lot network that operates separately.
The Mechanicsville distribution center has a total of 105
tractors in its fleet, and has set
a goal of converting approximately 65% of its total fleet to
natural gas by 2015.
Con-way Freight’s
New Tractors to Provide
Operating Experience
Con-way Freight has added
two Freightliner Cascadia 113
natural gas-powered tractors to
its fleet. These two tractors —
equipped with the Cummins
Westport ISX12 G engine —
add to the two CNG mediumduty trucks operating on a test
basis in Chicago that the company acquired two years ago.
“We’re dipping our toes,” said
Gary Frantz, Con-way Freight
director of corporate communications. He added that the
company took delivery of these
two new CNG tractors to gain
operational experience for
heavy-duty, real-world fleet operations. The new units will run
in Con-way’s nightly, line-haul
network in the Texas area.
“We believe natural gas has
a viable future for heavy-duty
commercial freight operations
like ours,” said Randy Mullett,
Con-way’s vice president of government relations and public
affairs. “As the infrastructure
matures and the units become
more cost competitive, we expect the opportunities for expanded use will increase.”
Freightliner began production
of the Freightliner Cascadia 113
natural gas-powered tractors in
August 2013, and these Con-way
Freight units are the first Cascadia day cabs with factory-installed
CNG tanks to hit the road.
“We’re proud to see our first
Cascadia CNG tractors with
factory-installed fuel tanks join
the ranks of one of the most
reputable, top fleets in the
nation,” said Steve Mignardi,
Freightliner Trucks director of
national accounts.
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Crete Carrier to Start Veteran
Driver Training Program
C
forces, more than 100 years with
Crete Carrier, and more than 20
million miles driven.
Crete Carrier is widely known
for its veteran hiring and recently earned the 2014 Military
Friendly Employer title by Victory Media, publisher of G.I.
Jobs and Military Spouse. Crete
Carrier, along with its Shaffer
Trucking and Hunt Transportation operations, said they aggressively seek to hire military
talent and have found that
hiring from the military com-
efforts, the percentage of new
hires with prior military service, retention programs, and
company policies on National
Guard and Reserve service.
Nearly 30% of Crete’s employees are veterans.
“As a company, we feel privileged to offer employment to
those transitioning from the
military,” Phillips said. “Veterans
can feel stranded once back in
civilian life, and it is important
that we offer them a solid career
with long-term benefits.”
Photo courtesy of Crete Carrier
rete Carrier Corp., a provider of truckload and logistics services, and its refrigerated division, Shaffer Trucking,
announced in late December
2013, approval from the Department of Veterans Affairs
to provide on-the-job training
to veterans and other eligible
applicants. This 12-month program provides approved veterans and other eligible applicants access to GI Bill benefits.
According to Crete Carrier
Driver Development Manager
Issac Phillips, with this program
in place service members transitioning from the military will
not only receive truck training
but may be eligible to receive
additional compensation from
their GI Bill.
The program is coupled with
Crete Carrier’s “Patriot Fleet,”
which launched in 2013 and
is aimed at recognizing drivers who served in the military.
“This program, along with the
Patriot Fleet are two ways Crete
and Shaffer are giving back
and supporting the men and
women that served this country,” Phillips said.
The Patriot Fleet is now at a total of 10 honorary trucks, which
are black International ProStar tractors with wrap graphics,
which include decals to salute the
U.S. Armed Forces and customized dog tags that list the drivers’
military branches, years served,
and miles with the company.
The Patriot Fleet drivers collectively represent more than 130
years of experience in the armed
Crete Carrier now has 10 tractors in its Patriot Fleet, which is aimed at recognizing drivers who
served in the military. The truck wrap decals include customized dog tags that list the drivers’
military branches, years served, and miles with the company.
munity gives them a strategic
competitive advantage. “I’m
honored that our family of companies has been recognized,
yet again, for our dedication to
hiring military personnel,” said
Tonn Ostergard, Crete Carrier
president and CEO.
The title is given to the top 100
companies surveyed, based on
criteria including: the strength
of company military recruiting
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Crete and Shaffer have received numerous awards as a
national leader in supporting
current and former members
of the military. This year alone,
Crete Carrier received the
American Legion Employer of
Veterans Award for the “Large
Business” category and was
recognized as a finalist for CivilianJobs.com’s Most Valuable
Employers for Military list.
LEADING FLEETS
WINTER 2014
7
WORRY-FREE FLEET MAINTENANCE
Amerit’s Custom
Maintenance Programs:
What You Need, Where You Need It
Through our four service platforms, Amerit Fleet Solutions addresses the fleet pain
point of managing a large number of maintenance providers and local shops. Tell us
what you need and where, and we will build a maintenance solution for your fleet.
T
oday’s fleets all face the
same challenge: How do you
maintain your assets when
you are not able to use in-house
technicians?
The answer is typically to use a
large number of small, local service providers. This model causes
many challenges though, since
the system drains management
resources and creates significant
administrative burdens. Priority is
often an issue. Quality and consistency can be poor and difficult to
track. Standardized, accurate data
is impossible to get or may require
manual entry. And costs are high.
8
LEADING FLEETS
WINTER 2014
Amerit addresses these issues
with a simple solution: Tell us what
you need and where you need it
and we will build a solution that
addresses your requirements —
anywhere in the country.
We believe every customer, no
matter who they are or where
they are, have locations with a
problem, whether it is poor quality, high prices, low priority, long
wait times for service, etc.
Our focus is on solving those
problems by creating a service
model that provides quality, priority, accuracy and reliability
while reducing costs. How do we
do this? By deploying a mix of
our four service platforms.
1. Fleet Service Centers: Our
Amerit Fleet Service centers are
purpose-built specifically to provide dedicated services to a small
number of local fleets. Like having your own garage right around
the corner, the Amerit Fleet Service Centers bring you the priority, quality and comprehensive
services that your fleet demands.
2. Mobile Service Centers: A virtual rolling garage, the Amerit Mobile Service Center (MSC) is ideal
for fleets that are either decentralized or located in areas that are
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WORRY-FREE FLEET MAINTENANCE
not supported by a garage. Each
MSC is built and equipped to service all your assets right in your
yard. Each MSC is also equipped
with a tablet or laptop for instant,
real-time data entry and accuracy,
so you have more visibility and
control over your remote assets.
3. On-Site Workforce: The
Amerit On-Site Workforce platform brings our technical and
workforce management experts
into your existing garages. With
our nationwide management
structure and professional recruiting team, Amerit brings standardization across multiple locations.
Through hiring the right techs,
we reduce the amount of expensive outsourced services by providing 98% of your fleets’ needs
on-site. We will also reduce the
burdens and risks from hiring,
training and managing a technical workforce, allowing your management team to focus on driving
your core business forward.
4. Amerit-Vended Maintenance
Management: For large, complex
fleets with equipment in a few assets in remote areas, this service
deploys our team of best-in-class
maintenance managers to manage third-party services. Our team
will ensure quality and consistency, optimize warranty capture,
and alleviate managerial burdens
of reviewing, scheduling and negotiating services.
Designing the Perfect
Service Program:
FleetPoint Analysis System
Building a custom service structure begins with a precise system
that takes the guesswork out of
configuring the perfect service
solution. With our FleetPoint
Analysis System, Amerit is able to
accurately measure the requirements of even the most varied
and complex fleets.
Beginning locally, we work
closely with local fleet managers
to gain a deep understanding of
their situation, challenges and
concerns. Through these meetings we seek a clear understanding of the operating environment
including downtimes, usage patterns, and other regional and
environmental conditions. Using a labor algorithm developed
through our experience in maintaining more than 100,000 assets,
Amerit analyzes the customer’s
fleet list to determine labor requirements needed to maintain
the asset, taking into account important variables like age, mileage and the application.
Amerit then maps where the
workload is needed and identifies
groups of assets that can be economically serviced by a combination of Amerit’s service platforms.
We then present this solution to
our customer detailing the size
of the workforce, suggested work
schedules and any other unique
solutions we think will benefit
your fleet.
Developing a
National Solution
When we work with a new client,
the logical place for us to start services is to look at regions or locations where the fleet is receiving
poor services or is experiencing
challenges. Building a solution
that solves those problem areas is
“phase one.” For companies that
are experiencing multiple trouble
spots, are looking to standardize
services across more locations, or
are looking for savings on a larger
scale, we grow this model to analyze larger areas, state-by-state or
region-by-region.
Connecting service programs in
this way — either across a region
or across the country — will deliver greater increases in performance, quality and standardization
while decreasing costs, downtime,
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management burdens and risks.
How Many Units
Do I Need?
We are often asked “How many
units do I need to have for you
to develop a custom solution for
me?” The answer is surprisingly
few. A dedicated solution can be
economical with as few as 20 assets
in some circumstances.
Amerit actively works with some
of the largest fleets in the country that are looking for similar
solutions, so we are often able to
match a small number of customers together to economically develop a solution even where each
customer has only a handful of assets. For this reason we encourage
prospects to bring to us their problem areas, regardless of how many
assets they have at that location.
How is Amerit
Able to Do This?
Some customers believe this is
“too good to be true,” and ask
how Amerit is able to do this profitably. The answer is our footprint.
Amerit has more than 1,300 technicians supporting assets at 500plus locations.
We have technicians and managers in most markets today and
this scale means we can cost effectively expand. By leveraging our
footprint, we are able to go wherever our customers need us.
Highly regarded for our ability
to address customer problem areas anywhere in the nation, Amerit
has become the largest provider of
dedicated contract maintenance in
the United States by providing innovative, customized and comprehensive fleet maintenance services
on a local and national scale. LF
For information on how Amerit Fleet Solutions
can help your fleet, contact Bob Brauer at (714)
412-9523 or [email protected].
LEADING FLEETS
WINTER 2014
9
COVER STORY
How C.R. England
Optimizes Fuel Efficiency
C.R. England continuously and carefully tests and adopts truck modifications and other
fuel-saving programs and technologies to lower its fuel use, and increase productivity
and driver satisfaction. Its latest initiative: TrailerTails.
By Kelsey Nolan
C
.R. England, one of the largest temperature-controlled
carriers in the world, continues to take stock and critically
analyze new ways to reduce fuel
consumption. From TrailerTails,
an aerodynamic technology, to
opening an IdleAir facility in Texas
and celebrating the 11th giveaway
in its Harley-Davidson Fuel Efficiency program, C.R. England has
implemented several initiatives to
save on fuel costs, lower emissions,
and promote driver satisfaction
throughout the company.
Headquartered in Salt Lake City,
C.R. England pursues these applications to help streamline its fleet
of about 4,500 trucks — nearly 90%
of which are Freightliners — and
approximately 8,300 trailers. The
company offers multiple carrier
services, from intermodal to longhaul, regional, and dedicated.
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LEADING FLEETS
WINTER 2014
involved dedicated trucks and
TrailerTails:
trailers, which included equally
Research, Test, Pilot
weighted blocks in the back for a
C.R. England meticulously remore real-world approach. One
searches and tests any technology
truck was considered the control
it adopts. When the company was
truck, while the other included
approached in 2010 by ATDynamthe TrailerTails, the test truck.
ics, creator of TrailerTails, within a
Although fuel benefits were
year of preliminary research C.R.
found
in the 2011 testing, C.R.
England representatives traveled
England
held off on adding the
down to Texas to observe a fleet
TrailerTails
due to challenges in
using the truck add-on. The aerofl
eet
makeup,
which made the
dynamic product attaches to the
time
to
achieve an ROI
back of the trailer to help
longer
than
what was deminimize drag, thereby resired
at
the
time.
Later in
ducing fuel usage.
2011,
the
company
adaptAccording to C.R. Enged
a
new
testing
protocol
land Director of Fuel Aland decided to take anlen Nielsen, the company
other stab.
recognized certain fleet
The second test, a SAE
benefits and began runType-2
test where each
ning controlled testing
Allen
Nielsen,
truck
has
a removable
in 2011 through what’s
12-gallon
fuel
cell turned
called an SAE Type-4 test. C.R. England
on
via
an
onboard
switch
The TrailerTrail testing Director of Fuel
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Photos courtesy of C.R. England
by the driver, was done in 2011 and
again in early 2012. In this test the
trucks travel six, 40-mile segments
of driving. At the beginning and
end of each 40-mile test drive, the
fuel cells are weighed. The difference in weight on the control
truck’s fuel cell is then compared
to the test truck, giving a result that
lowers the risk of driver behavior
and other variables from tainting
the results.
For the TrailerTails test run, C.R.
England saw close to a 3% increase
in fuel efficiency with the Type-2
test, but still faced challenges with
fleet makeup before moving forward with the technology until the
end of 2013, when the company
kicked off the use of the technology with a pilot phase. C.R. England ordered 200 TrailerTails from
ATDynamics — 100 of which had
been installed as of this writing.
Nielsen explains that the logistics
of the technology is quite simple:
Once installed, the driver pulls a
lever and the TrailerTail is deployed. “If the tail is not deployed,
it’s not saving us money,” he says.
“It’s one of the risks you take when
you rely on the driver to make sure
it’s deployed.” ATDynamics has an
auto-deployment feature so the
TrailerTails will deploy once the
truck reaches 20 or 30 miles per
hour, but C.R. England instead
takes extra time with drivers to ensure the tails are used.
To open up the trailer doors, the
tail folds in automatically when the
doors are opened.
While C.R. England has proven
a fuel benefit with the TrailerTails, the company will track over
the next three to six months the
in-service benefit, which can be a
lot harder than controlled testing.
“More than fuel efficiency, we want
to make sure these do not create
additional frustrations out on the
road for our drivers,” Nielsen says,
adding that they will observe any
for C.R. England. The company is
looking to put additional branded
wheel covers on the fleet’s new
trailers that the company is purchasing later this year. Truck skirts
have also saved the company about
3-5% in fuel costs.
(Top) C.R. England conducted several
controlled tests on the TrailerTrails before
eventually starting a pilot phase and
purchasing 200 of them at the end
of December 2013. (Above) To give
a more real-world effect in controlled
testing, the trailers are filled with equally
weighted and distributed blocks.
maintenance issues as well.
Other fuel reduction strategies
C.R. England utilizes are aerodynamic wheel covers currently fitted on approximately 1,000 trucks.
“We’re constantly testing new tractor/trailer combinations, and different aerodynamic devices have
been a big part of our company,”
Nielsen says.
The wheel covers, which help
with aerodynamics around the
wheel and tire, are generating between .75% and 1% fuel savings
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No Idling, With Comfort
In February, C.R. England officially opened a new IdleAir facility
with 24 stations at its Laredo terminal, which was chosen as a pilot because of high temperatures almost
year round.
The purpose of IdleAir is to accommodate drivers who would otherwise idle in order to stay warm or
cool while they wait to reload or
simply take a break — and gives
them access to amenities such as
Internet, TV, and other entertainment options.
Every time drivers use an IdleAir
station, they save a couple dollars
an hour depending on the current
fuel cost. “We figure every hour
a truck idles is about a gallon of
fuel,” Nielsen says. With the cost
of fuel upwards of $4 per gallon,
IdleAir costs C.R. England less
than $2 per gallon. “That’s a huge
savings for us,” he says, adding that
it’s also helpful for hours of service
so drivers spend less time searching for a truck stop.
In other idle reduction efforts,
C.R. England requests that driv-
LEADING FLEETS
WINTER 2014
11
COVER STORY
ers not idle in company terminals.
C.R. England has installed cab
heaters in its trucks for the last 14
years to help reduce idling when
the temperatures turn cold. With a
drastically reduced cost over APUs,
cab heaters help C.R. England
keep idle time low as well as help
retain a tight, 3-year replacement
cycle on most tractors.
The company is also looking at
buying additional technology this
year that would include a thermostat similar to a central air system
in a home, in which the truck will
turn on and off as necessary to
keep the cab at a desired temperature. This would keep the driver
comfortable without having to
keep the engine on.
In addition to aerodynamic and
anti-idling efforts, C.R. England is
testing out two Freightliner CNG
trucks in Salt Lake City that were
deployed last February and has
been running five Kenworth HDPI
LNG trucks in California since
2010. In fact, also in February, C.R.
England signed a multi-year LNG
bulk fueling agreement with Shell
to continue support for its LNG
trucks in California.
Rewarding
Drivers, Creatively
C.R. England adopted a quarterly
Harley-Davidson Fuel Efficiency
Recognition program in 2011. This
Harley giveaway presents a large —
and fun — incentive for top C.R.
England drivers. The latest giveaway in January 2014 marked the
company’s 11th Harley giveaway.
Nielsen says that while C.R. England values the idea of a fuel efficiency recognition program, with
so many different carrier services
it was originally difficult to make
it fair across all drivers. “We determined what we thought was a
good MPG and idle level that most
drivers could achieve, and based
on that, drivers would gain entries
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LEADING FLEETS
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into the drawing,” he explains.
Each driver can earn up to six
entries per quarter if they have
been with the company since the
start of that given quarter. From
the entries, five drivers are randomly selected and brought to
Salt Lake City, where each driver is
highlighted at the event and given
gift bags with items valued between
$500 and $1000.
IdleAir is a third-party company that
alleviates the need to idle during driver
downtime and provides amenities such
as Internet, cable television and other
entertainment options. At C.R. England’s
Laredo, Texas terminal, the company
has 24 IdleAir stations.
For the grand finale, each driver
chooses a key out of a hat and whoever draws the key that starts the
Harley, wins.
After each giveaway, the company issues a press release and
includes an announcement in the
company’s internal newsletter. Additionally, the company congratulates the winners via its onboard
computer system from Qualcomm.
At one point, a winner’s photo with
the Harley even made it to a Times
Square billboard in New York City.
Drivers are able to stay involved
in the competition since they can
track their own statistics by logging
onto the company website. The
website also includes efficient driving tips and past Harley winners.
Of course, with so many drivers, it’s hard to determine to what
degree the program is having an
effect. “It’s difficult to gauge how
many of them are really trying, and
I’m sure it ebbs and flows,” Nielsen
says. “But every time we bring in
five new drivers, they tell us they
are working hard and hoping to
get the Harley.”
According to Brandon Harrison, C.R. England’s COO, C.R.
England offers other reward incentives including a quarterly Million Miler program, Driver of the
Month and Driver of the Year, as
well as support office employee
recognition, pay-for-performance
in which drivers who hit certain
thresholds in safety and service
have an opportunity to make
more money, and most recently, a
creative recognition program.
Harrison explains that the creative program was born recently
after two drivers submitted a rap —
yes, rap — that they wrote on the
road and recorded at home. After
C.R. England got wind of the rap,
the company recognized the duo’s
talent and asked them to perform
in Salt Lake City. That performance
kicked off a “creative” program.
After drivers submit their work,
other employees go online and
vote for who they think has the
best art or project. The company
then recognizes the best submissions. “We’ve seen some really,
really neat projects and we’re encouraged by the driver feedback
we’ve gotten,” Harrison says.
Company Advances
with Technology
C.R. England is implementing new
safety compliance tracking and
other safety software investments,
but also sticks to a tried and true
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practice: keeping safety a daily focus. “Safety training is something
we evaluate on an on-going basis.
We look at it day-to-day, week-toweek, and month-to-month,” Harrison explains.
C.R. England’s driver safety
program starts with the company
driver schools and is an ongoing
process and focus throughout a
driver’s career with C.R. England.
The driver schools also keep in
line with ensuring that drivers are
using efficient driving practices.
Harrison explains that C.R. England gives drivers comprehensive
written and verbal tests, driving
evaluations, and a number of other
safety items and curriculum. Plus,
each driver is provided a monthly
safety video, created by a professional in-house media team. The
videos can be accessed online or at
any C.R. England terminal.
A new Learning Management
In a driver-focused effort to reduce fuel use, C.R. England implemented in 2011
System (LMS) allows the company
a quarterly Harley-Davidson Fuel Efficiency Recognition program, in which drivers
to administer curriculum at any
compete to win the keys of a Harley hog.
point and it enables C.R. England
ernance have become crucial for
er carrier, have gaps in our netto track compliance — making
company safety goals.
work; so we can’t get every piece
sure drivers are following up with
Technology has also aided the
of equipment into our maintethe curriculum the company iscompany’s maintenance efficiennance terminals in the case of an
sues. Management has access to
cies. Virtual Technician, a prounexpected mechanical failure,”
how drivers score on these tests and
gram developed by Detroit Diesel,
Harrison says.
the LMS provides touch-points for
is an on-board diagnostic program
To monitor the equipment
what areas need to be addressed.
that allows C.R. England to run
individually, C.R. England also
In order to assess what kind of asdiagnostics on its tractors while
uses telematics on the trailers in
sistance drivers need, safety manthey are out on the road. One adaddition to Qualcomm units and
agers have been strategically posivantage of Virtual Technician is
satellite tracking in tractors. Plus,
tioned throughout the country in
that it shows the company dealer
customers can rest assured about
areas where there is high density
networks and their schedules. “It
the integrity of their cargo, thanks
for driver support and evaluations.
shows us not only what’s
to C.R. England giving them the
According to Harrison,
wrong, but also the best
ability to track refrigerator temmany safety tech investway to minimize downperatures and access this informaments have been made,
time for drivers.”
tion for their shipments.
such as critical event reWith five full-service
With its commitment to fuel effiporting and a safety work
maintenance terminals
ciency and fleet sustainability, and
bench which allows safety
throughout the country,
a focus on drivers from the point
managers to stay on top
C.R. England tries to
of hire to the millionth mile and
of the critical events and
funnel as much activity
beyond, C.R. England is able to
coach drivers.
and equipment through
maintain its customer service and
Additionally, in-cab nav- Brandon
employee satisfaction while taking
igation, roll stability on Harrision, C.R. those terminals as posa load off its bottom line.
LF
tractors, and speed gov- England COO sible. “We, like every othLEADINGFLEETS.COM • AMERITFLEETSOLUTIONS.COM
LEADING FLEETS
WINTER 2014
13
WORRY-FREE FLEET MAINTENANCE
Accuracy & Access:
Demanding Comprehensive
Data from Third-Party Suppliers
If you put time and effort into developing and maintaining an accurate, reliable
database, why settle for anything less when using outside vendors?
By Amein Punjani,
Chief Operating Officer of Amerit Fleet Solutions
C
aptive operations provide fleet managers and
leadership with a high
degree of control and visibility.
The management of employees
or outsourced labor/contractors through standard processes,
training, and mandatory interaction with a fleet management
system (FMS) yields the kind of
dashboard data that many fleet
operators rely on to make complex and time-sensitive decisions.
However, when fleet managers
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LEADING FLEETS
WINTER 2014
move outside the captive shop for
services, data collection and accuracy go out the window. Often, fleet
managers then find themselves
caught with a “black hole” in their
fleet data. The greatest danger this
situation creates is having a blind
spot in vehicle history that undermines your overall management
process and fleet performance.
Unfortunately, many fleet managers have grown to accept this
problem as just a part of the frustrations in managing their fleet.
But, as Amerit Fleet Solutions has
proven through servicing some of
the largest fleets in the country,
our FleetCommand Data Management System allows our clients
to take back control of their outsourced assets — providing visibility and control that is lacking
from other third-party vendors.
The Importance of
Accuracy and Access
Accurate data is important for a
variety of reasons. The fleet indus-
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WORRY-FREE FLEET MAINTENANCE
try is geared toward measurement:
cost per mile, preventive maintenance frequency, miles per gallon,
etc. These common metrics are
pervasive throughout the industry
but mean nothing without accuracy and access. Let’s look at a few
common ways that data — or lack
thereof — impact everyday management decisions.
1. Warranties
When filing warranty claims you
need to know your “Three Cs”:
complaint, cause, and correction.
You need to record what you did,
but just as importantly, you need
to also know the background details of the asset by asking these
questions:
• What is the vehicle’s service
history?
• What specific services or
repairs were performed?
• Why did that vehicle come in
in the first place, and is this a
repeat occurrence?
Without these data points you
do not have a full historical picture of this vehicle’s issues, costs,
and remedies, which leaves you at
a road block — you cannot submit
a warranty claim without these key
data points.
Because most third-party vendors do not provide historical details on their invoice, fleet managers and their staff have to endure
the additional burdens of requesting and inputting each data point
before submitting a claim.
2. Employees
Data is also important to ensure
accountability. This is particularly
true if you are managing a technician workforce, but is also a key factor to managing outside vendors.
Knowing what task times were
recorded and whether the technician doing the task performed
that service within the standard
task time not only helps you hold
vendors and employees accountable, it also helps you gauge overall performance. This gives you a
clear view into your costs and any
possible improvements.
3. Costs
When proving ROI, accurate and
comprehensive data is mission
critical. When you pull the costs
for a vehicle you must have confidence that those costs are accurate and reflective of the actual
vehicle history.
At Amerit, we often code costs
to the vehicle itself — not to a
general department code. This
helps our clients know the true
cost of operating that vehicle to
make informed decisions, like
should they buy that vehicle type
again? Or should they go with a
different type of vehicle because
of repeat problems and a high
cost of ownership? Conversely,
accurate and complete data will
also prove that a cost-savings initiative did indeed save money and
deliver greater profitability.
If you put time and effort into
developing and maintaining an
accurate, reliable database, why
settle for anything less when using
outside vendors?
‘Captive Shop’ Data
from Off-Site Vendors
The industry is advancing. Retail
service providers utilize systems of
their own, which “talk” to your systems — if you ask for it. The world
has moved beyond expensive EDI
interfaces to more nimble ways to
exchange information. For example, .csv files extracted to FTP sites
for upload can do the trick as well
as .xml data file transfers.
But what if an outside vendor
could provide you with both your
maintenance data and your invoice seamlessly either weekly,
daily, or in real time directly into
your FMS? VMRS codes, part
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numbers and descriptions, notes,
meter and other data could flow
directly into your system. You
would essentially have the “captive shop” experience with your
data, giving you the same visibility
and control from our off-site Fleet
Service Center or Mobile Service
Center (you can read more about
those services on page 8).
Delivering Data Every Day
As an outsourced maintenance
provider to some of the largest
fleets in the country, Amerit provides complete, accurate and realtime data to all our clients through
our FleetCommand Data Management System. We partner with our
clients to deliver standard and
specialized, real-time data. And
all our technicians are thoroughly
trained and held accountable for
accuracy and thoroughness.
During each repair or service,
Amerit’s clients are able to view
the vehicle’s progress in real time
with precise data and time spent
on the unit. All invoices, data
files and reporting are transmitted electronically and/or as hard
copies as frequent as the client
needs. This flexibility provides
an unprecedented level of detail
from an outside supplier.
At Amerit we pride ourselves in
our ability to address and solve our
customer’s needs and problem areas. With our FleetCommand System, Amerit is able to provide the
same in-house data quality, reliability, accuracy, and control.
LF
Providing innovative, customized, and
comprehensive fleet maintenance services on a local and national scale, Amerit
is the only nationwide maintenance
provider creating full-service programs
that answer the toughest challenges
from the largest fleets in the U.S. These
programs increase their uptime, reduce
managerial burdens, and ensure quality
and accuracy while delivering savings.
LEADING FLEETS
WINTER 2014
15
FLEET PROFILE
Ferrellgas Pushes Past
Winter Challenges
Coupled by a higher demand, road closures, and other supply issues, propane
companies were faced with seemingly relentless challenges this winter. Ferrellgas
stepped up to meet this demand, and to keep customers warm and happy.
By Joanne Tucker
M
eeting propane demand
through the “polar vortex” this winter brought
extra challenges to companies
like Ferrellgas and other propane
businesses. But in staying focused
on winter operation protocols,
moving fleet where needed, and
allowing for routing flexibility,
Ferrellgas was able to face these
hurdles head on.
The company’s fleet totals
around 3,500 trucks spread out
nationally, including its Blue
Rhino brand, which provides propane tank exchange.
Dealing with the Cold
Many states struggled with snow
and ice storms throughout the winter this year, and in an industry that
relies on trucks and roads to make
deliveries, when roads are closed,
getting product to customers can
pose quite the dilemma. “There’s
not a whole lot the propane industry can do with the roads,” says
Mike Abrams, Ferrellgas director
of fleet services, adding that the
solution is to either take a longer
route or just wait.
Ferrellgas drivers working in
these areas are
fairly used to adverse
weather
Mike Abrams,
conditions. “They
Director of
can still find the
Fleet Services
16
LEADING FLEETS
WINTER 2014
tanks in four-foot snowdrifts. It’s
kind of the norm for our drivers to
have to go through snow to bring
in the hoses,” Abrams says, who has
been fleet director for five years
and with Ferrellgas for 17.
To forecast demand ahead of
schedule and before customers
run out, Ferrellgas utilizes tankmonitoring technology. However,
Abrams says that keeping up with
demand was exacerbated this year
due to a large amount of customers
whose suppliers either weren’t able
to keep up or ran out of an immediate supply, and called on Ferrellgas to step in. “We always make sure
the customers we contract with are
taken care of,” he says.
This winter was a special case,
with many media headlines stating
that there was a propane “shortage.” According to Ferrellgas,
though, while there were several
factors at play including an unusually high demand in the fall and
unrelated pipeline issues, calling
it a shortage could be argued as a
misnomer. “There was and there is
plenty of propane in the U.S.,” says
Scott Brockelmeyer, Ferrellgas vice
president of communications and
marketing. “It was really a situation
and scenario where propane was
not where we needed it to be.”
So adding road closures and
weather issues to the mix made it a
perfect storm of challenges. For example, when the company would
normally pull product out of Kansas and deliver it to Indiana, the
fleet was traveling all the way down
to Texas to get it. “That puts longer
timelines in the delivery process,
and adds to the cost,” Abrams says.
For Ferrellgas, having a large
fleet aided its winter deliveries.
Whether it was changing routes
to retrieve propane elsewhere, or
shifting portions of the fleet from
lower-demand areas to where trucks
needed to be. “This was a challenge
for a number of retailers in our industry,” Brockelmeyer says.
Keeping Engines Running
Diesel fleets across the northernmost and coldest states had to
grapple with gelling, which is when
diesel fuel hardens in the fuel lines,
preventing the truck from starting.
For Ferrellgas, this wasn’t an issue in areas used to the frigid temperatures, where the company uses
certain diesel additives in the tanks
to prevent the fuel from gelling.
“But for our guys in Indiana, Illinois and Ohio, that’s an unusual
thing for them to face, so when -20
degree temperatures hit us overnight where use of additives is not
normal protocol, we definitely had
fuel gelling issues,” Abrams adds.
To fix the issue, patience is a
required tool. “Once the fuel is
gelled, you can’t just add something to your fuel tank and start
the vehicle,” Abrams says. “You
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Ferrellgas drivers are often used to working in snow-packed areas, but this
year brought extra challenges in areas not used to the frigid temperatures.
Photos courtesy of Ferrellgas
need to get it to a shop where they
can warm the fuel injectors.”
While products exist to help
aid the process, those still involve
some mechanical disassembly, so
either way, time and getting the
truck to a shop and warmed up is
key — and not always easy. “Sometimes, you just have to get it towed
somewhere,” he says.
Ferrellgas also boasts a robust
preventive maintenance program. With its longest replacement cycle of 13-15 years on Class
7 bobtails and any other upfitted
trucks, staying on top of scheduled maintenance year-round is
the cornerstone to the success of
the strategy, which also aids during extreme weather.
The fleet keeps a pool of deployable trucks ready, particularly the
bobtails, and cylinder and boom
trucks. “We’ve got trucks that are
either ready to go, or they’re in the
pipeline being built,” Abrams says.
“It allows our field to operate with
a certain level of confidence when
they know that if they are going to
need a truck, we can get them one
in relatively short order.”
Keeping Drivers Safe
With icy roads affecting states that
rarely see them, Ferrellgas’ driver
training and safety protocols were
all the more useful. During the winter, the company focuses on stopping distance, tire chains, checking
the battery charge, and of course
the year-round risks involved with
distracted driving and how that can
be even riskier on icy roadways.
But safety for Ferrellgas is really a focus at the local level. As
a decentralized company, local
managers get the face-to-face time
with drivers and are therefore better candidates to execute.
Propane in Fleet
Not surprisingly, about 17% of
the Ferrellgas fleet includes either dedicated or propane bi-fuel
trucks. Aside from the obvious reason, the company uses propane
in fleet because of easy access to
infrastructure as well as the costeffectiveness of installing a private
pump. “Ask anyone who owns
an RV and they’ll tell you there’s
thousands of places around the
country to refuel,” Abrams says.
The company is also enjoying
the comparable operating cost
per-mile to gasoline. “As long as
the vehicles are well maintained,
we don’t see any issues with longterm viability,” Abrams says, adding that another bonus for using
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propane is that in cold weather, it
can’t gel up like diesel.
The ‘Right’ Kind of Growth
Established 75 years ago, Ferrellgas has seen significant growth
over the years. While the company
has made multiple acquisitions,
including two just since August
2013, in the last year or so the
company has been experiencing
some fleet “right-sizing.”
“We’ve been growing our efficiencies and reducing our fleet,
which is, I think, the best of both
worlds,” Abrams says, adding that
investing in technology has been a
key driver in this initiative.
Through improved routing
software and tank-monitoring
technology, the company is able
to eliminate a lot of unnecessary
driving. “The investment in technology has allowed us to deliver
the same number of gallons with
far fewer vehicles because of those
efficiencies,” Abrams says.
Another contributor to streamlining aspects of the fleet is refining
roles and responsibilities of local
managers. According to Abrams,
the result is a system allowing more
time for dispatchers and other logistics employees to focus on improving efficiencies even further. LF
LEADING FLEETS
WINTER 2014
17
LEADING THOUGHTS
CLEANER, BETTER Truck
Technologies Are Coming
By John Boesel, President and CEO, CALSTART
We’ve seen the innovations for passenger cars and other light-duty applications, but
what’s the state of cleaner technologies in the heavy-duty market looking like? Let’s just
say, we’re entering a period of significant change.
T
18
LEADING FLEETS
WINTER 2014
Photo courtesy of Volvo Trucks
he energy and environmental challenges confronting
all major industrial nations
are resulting in policymakers taking a closer look at what can be
done to make trucks cleaner and
better for public health and the
environment. National and economic security priorities are also
prominent as many civic leaders
from Beijing to Washington, D.C.
want to reduce their dependence
on imported oil and keep their
energy dollars at home.
Significant action has already
been taken to reduce emissions
and increase the efficiency of the
passenger car market. The 2025
goal in the United States is for
each car company’s mix of vehicles
sold to operate on a 54.5 mpg basis
on average. This target is roughly
consistent with similar goals established in Japan, China, and the European Union.
These policy goals are already
having a substantial impact on
the light-duty vehicle sector. The
market share of high-efficiency
gasoline direct injection engines
has grown by about six-fold to 32%
from 2007 to 2012. Electric and
hybrid cars now account for about
4% of all new car sales.
At a modest incremental cost of
$1,600, Ricardo, the global automotive consulting firm, has pro-
This is one of the latest fuel technologies to hit the truck market and is being spearheaded by
Volvo. Pictured is a Volvo VNL 300 with the D13 di-methyl ether (DME) engine.
duced a Ford Focus that will be capable of getting 60 mpg with only a
mild hybridization of the gasoline
powertrain. And, Ford just recently
announced plans to cut the weight
of its best-selling F-Series pick-up
trucks by 700 pounds. Imagine
how much better mileage your car
would get if it didn’t have two guys
in the back seat, each weighing 350
pounds! Current estimates suggest
the mpg of a Ford F-150 will jump
from 23 to 30 mpg.
With big goals being established,
and innovation and investment occurring in the light-duty vehicle
sector, the same questions are often raised about trucks and buses.
What is the new fuel or technology
that can really make a difference in
the heavy-duty vehicle sector? Will
we see a similar level of improvement, and at what pace?
Refining the Old
The best “new energy source” for
trucks and buses still lies in efficiency — making the existing
dominant powertrain more efficient, and requiring less fuel.
New and existing engine manufacturers are now working on
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Hybrid & Electric
Over the next decade, we expect to
Photo courtesy of CALSTART
more efficient and innovative engine designs. Capturing waste-heat
and using it to generate power can
yield significant new efficiencies,
for example. Start/stop technology will reduce fuel consumption
during idling and will be seen in a
number of trucks this decade. And,
opportunities remain to lower the
non-cargo weight of the trucks and
increase the aerodynamics, while
reducing their rolling resistance
through better tires.
When we look to fuels beyond
diesel for the truck sector, it is important to keep in mind what we
are aiming for. The fuels of the
future need to emit less than or
an equal amount of particulate
pollution currently generated by
the much cleaner diesel engines
that meet the U.S. 2010 emission
standard. From a total lifecycle basis, the fuels also need to produce
fewer harmful greenhouse gas
emissions. Lastly, the fuels need to
be scalable and able to meet a significant portion of market demand
while being economical.
The truck sector already is extremely diverse, ranging from
Class 2 urban delivery vans to Class
8 long-haul tractor trailers. The
growth of the new fuel market can
actually benefit from this diversity.
Different fuels can quite easily be
used in different segments and different applications. Extensive research and deployment tests have
shown repeatedly that an effective
fuel choice is all about duty-cycle
and how the vehicles get used. A
decade ago, it was not that important for fleets to fully understand
the duty-cycles of their trucks because they basically had one fuel
choice. Today, there is a growing
array of fuels, each of which, like
the existing dominant fuel, offers
its own strengths and weaknesses.
Frito Lay, Staples and UPS are among the fleets currently taking advantage of electric power in fleet.
see electric and hybrid technology
expand in the regional urban delivery and possibly in the drayage
markets. Electric and hybrid drivetrains are simply more efficient,
capable of capturing braking energy and require less energy to
create traction power. Frito Lay,
Staples, and UPS are among the
fleets currently taking advantage
of electric power.
Presently, the states of California
and New York, along with the City
of Chicago are helping to support
growth of the electric truck market
by offering incentives. Oddly, Congress has decided that an individual should get a tax credit if they
purchase an electric car, but they
do not offer any such tax credit to
a fleet that wants to purchase an
electric truck.
Hybrid technology got off to a
pretty fast start but its growth has
slowed a bit recently. We expect to
see it grow during the next decade
as more suppliers enter the market
and provide better technology.
The truck market has yet to
benefit from a Toyota-level of
commitment to the technology.
As a result of continuous improvement and sustained investment, Toyota is now selling its
4th generation hybrid drivetrain
and has sold more than 6 million
Prius models worldwide.
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Over time, we will continue to see
new and improved hybrid systems
in the truck market, but it looks
like it will take longer to penetrate
than it has in the car market.
Presently, there are a number
of plug-in variations of passenger
cars. Some are all electric, while
others like the Volt have a limited
zero-emission range and then operate as a gas hybrid past the electric
range. A growing number of megacities around the world need trucks
that have a zero-emission capability
when operating in the most heavily
polluted corridors. It is likely that
over the next decade we will see a
number of different plug-in hybrid
variants in the truck sector.
Natural Gas
The growth of the natural gas market in class 5-8 trucks over the past
three years has been exceptional.
Fleets ranging from Pepsi to Monarch Beverage (the largest distributor in Indiana) to UPS have
been taking advantage of natural
gas not only because it produces
fewer particulates, but simply because the economics have been so
attractive. It is not uncommon for
fleets to secure long-term pricing
arrangements for natural gas that
is less than a dollar per diesel gallon equivalent.
From a total environmental per-
LEADING FLEETS
WINTER 2014
19
LEADING THOUGHTS
spective, some questions have been
raised recently about natural gas.
On the plus-side, in a recent analysis we completed for the California
Energy Commission, CALSTART
identified the potential for natural
gas to produce even lower emissions than the 2010 standard. This
is a very encouraging development,
particularly for metropolitan areas
like Houston, Fresno, and Los Angeles, where air pollution remains
a major concern.
On the greenhouse gas side of
the equation, a number of studies
underway are examining whether
there are losses of methane from
the process of producing the gas
to using it in the truck. Under cur-
from fossil sources, it is generated
from digesters where biological material decomposes. In California,
Waste Management Inc. is running
a large number of trucks on ultralow carbon biomethane that is generated from one of its landfills.
Biodiesel &
Renewable Fuels
Somewhat quietly, the biodiesel and renewable diesel sectors
have continued to grow over the
last five years.
Using different processes, but
largely the same feedstock, the
production of both renewable and
biodiesel has continued to grow.
Production of these fuels exceed-
Today, there is a growing array of fuels, each of which,
like the existing dominant fuel, offers its own strengths
and weaknesses.
rent scenarios, natural gas trucks
and buses tend to produce about
20% fewer greenhouse gas emissions than diesel trucks.
A game changer for natural
gas could be the development of
heavy-duty engines specifically designed to operate on natural gas
and take advantage of its high octane content. Preliminary studies
suggest that optimized natural gas
engines could be 30 times more efficient than they are today.
Di-Methyl Ether
Volvo is currently taking lead in
the use of a fuel called Di-Methyl
Ether (DME) which produces virtually no particulate matter and
can be used in a slightly modified
diesel engine.
DME can be produced from
natural gas — or for even lower
greenhouse gas reductions, can
use biomethane as its feedstock.
Biomethane is effectively just like
natural gas, but instead of coming
20
LEADING FLEETS
WINTER 2014
ed 1 billion gallons in 2012. The
industry is quickly moving away
from sole reliance on soybeans
and taking advantage of waste materials for a growing percent of
production. Both biodiesel and
renewable diesel are “drop-in” fuels that can be easily blended with
conventional diesel.
Looking further down the biofuel road, firms like Sapphire Energy and Solazyme are now producing “algae” crude, and testing
them in a wide array of modes —
ranging from aircraft carriers to
passenger cars. From a technical
perspective, these new renewable
fuels are working and proving reliable. At this point, the challenge
is to bring down the price and to
find ways to produce the algae in
volumes that can have a major impact on the market.
Leveraging Progress
Lastly, the truck industry may be
able to leverage progress being
made in the transit bus sector.
During the last 20 years, the U.S.
transit bus sector has played a leading role in testing out and proving the viability of natural gas and
hybrid powertrains in heavy-duty
platforms. Presently, both electric
and hydrogen fuel cells are being
used by a growing number of transit properties in the U.S.
With funding provided by the
Federal Transit Administration,
CALSTART will soon test two different configurations of fuel cell/
battery dominant buses, one at
SunLine Transit and one at Connecticut Transit. In this case, a
small fuel cell, powered by hydrogen, will recharge the batteries
and enable a bus to operate all
day with zero emissions. TTSI, a
drayage firm based in Southern
California, is currently testing out
a similar technology configuration
produced by Vision Motors.
We are entering a period of
significant technological change
with major environmental promise. Many suppliers seek to leverage and build upon what is being done with light-duty vehicles
and apply those innovations to
the heavy-duty sector. In 10 years,
while diesel will still be the dominant fuel used in the U.S. trucking industry, fleets will have a lot
more choices, including the option to do more with less fuel than
they are using today.
LF
John Boesel is president and CEO of
CALSTART, the nation’s leading clean
transportation consortium. CALSTART offers a broad array of technical, policy,
and consulting support to more than 120
member companies. Headquartered
in Pasadena, Calif.,
the nonprofit organization has offices in
New York, Colorado,
and Northern California, and administers
projects all over the
United States.
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