The Benefits of Stringent Trucking Standards

by Kate Rack, marketing & communications intern

The Obama Administration is developing new fuel economy standards for trucks, and last week, Ceres and Environmental Defense Fund hosted a webinar outlining how implementing strong federal standards for medium- and heavy-duty trucks would be truly a win-win situation.

Our organizations, along with other leaders, are calling for strong standards that cut fuel consumption by 40%. A recent analysis of such standards shows that they would reduce both greenhouse gas emission levels and expenses to ship goods via freight.

EDF helps freight logistics professionals on the journey to greener freight

Why make truck efficiency a priority?

Currently in the U.S., the trucking sector is the fastest growing single source of greenhouse gas emissions. U.S. businesses spend $650 billion a year on freight trucking services, which equates to over half a billion tons of GHG emissions. It is essential that as fuel efficiency standards for cars becomes more stringent, trucks follow suit, especially since 70% of tonnage shipped within the U.S is by truck. In particular, retail and consumer products are the largest consumers of trucking in the United States. Chances are, the computer screen that you are using right now to read this blog post was brought to you on a truck!

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Join EDF and Ceres Experts for “Truck Talk”

As July 4th fades away, grills cool down and the remains of fireworks are swept away, it’s time to roll up our sleeves and get back to work. In my case, I’m preparing for a webinar Ceres’ Carol Lee Rawn and I are holding this Wednesday, sharing the findings of our recent report on how strong medium- and heavy-duty truck standards would cut freight costs and emissions.

It’s a topic we’re both passionate about – and think you should be too —  and with good reason: U.S. businesses spend $650 billion a year on freight trucking services, which account for over half a billion tons of greenhouse gas (GHG) emissions a year, the fastest growing single source of GHG emissions. Fuel is the single largest cost of owning and operating a heavy-truck, accounting for 39% of total costs.

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Our report finds that new, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile, an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.

The Obama Administration is in the process of developing new fuel economy and GHG standards for medium- and heavy-duty trucks, and its determination will affect both your company’s freight costs and GHG emissions.  Join us on July 9th for this webinar, where we’ll walk through the savings associated with strong standards and how you can help ensure that stringent standards are adopted.

Register now for the webinar!

Save Your Company Costs: Support Stronger Truck Efficiency Standards!

New, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile. These are among the key findings of a new report from EDF and Ceres.

The report, which is based on analysis by MJ Bradley and Associates, examines one potential technology pathway to achieve the stringency target of 40% over 2010 set forth by our groups and other advocates.

PrintFuel is the single largest cost of owning and operating a heavy-truck, accounts for 39% of total costs. Strong fuel efficiency standards will target these costs largely by requiring the use of cost-effective, fuel saving technologies. As the new analysis demonstrates, fuel savings will be significantly greater than increases in equipment costs.

A $0.21 per mile savings, for example, has an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.

Our finding of significant financial benefits of strong fuel efficiency and GHG standards is consistent in magnitude with previous analysis. A recent report by the Consumer Federation of America looked at similar Phase 2 standards and found net savings of $250 to consumers, rising to $400 per household in 2035 as fuel prices and transportation services increase.

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6 MPG? We Can Do Much Better

Here’s something to think about next time you are stuck in traffic next to an 18-wheeler.

The average tractor-trailer can travel only six miles per gallon of diesel.

These heavy trucks travel a lot too; averaging more than 120,000 miles a year or 20 round trip drives between Boston and San Francisco.

Freight trucks are on the road for one primary purpose: to get goods to all of us. In fact 70% of U.S. freight tonnage is moved by tractor-trailer trucks. Over the coming years, demand for freight services is expected to grow even more. And this is driving up fuel consumption and greenhouse gas emissions.

Strong, new fuel efficiency and greenhouse gas standards for our nation’s heavy trucks are achievable, cost-effective and critical to cutting greenhouse emissions and fuel consumption – all while we continue to depend on trucks to deliver the goods we need and want.

It is possible and affordable for tractor trailer trucks to get nearly 11mpg by 2025.

EDF is calling on the Obama Administration to set new fuel efficiency and greenhouse gas standards for heavy trucks that cut fuel consumption by 40% compared to 2010 levels.

These standards would also apply for heavy-duty work trucks, such as box delivery trucks, bucket trucks, beverage delivery trucks and refuse trucks.

The infographic below highlights some of the technology available to meet bold standards as well as the significant cost, oil and emissions savings from such standards.

One fact that just jumps out at me is this: These standards will cut our oil consumption by 1.4 million barrels a day.

That sounds like a big number and it is. It’s a bit higher than the amount of oil we import daily from Saudi Arabia.

Bold fuel efficiency standards are good for our economy, environment and energy security.

They will also be good for trucking fleets too. These trucks will cost $30,000 less to fuel a year.

Strong fuel efficiency and greenhouse gas standards for heavy trucks are an important part of the President’s Climate Action Plan. EDF will continue to work towards strong standards through our unique combination of industry engagement, regulatory design expertise and technical know-how.

EDF Honored to Receive EPA SmartWay Affiliate Challenge Award

EDF has been a long-time supporter of the U.S. Environmental Protection Agency’s (EPA’s) SmartWay Program and we are proud to announce that tomorrow EPA will honor EDF with an Affiliate Challenge Award. This award not only recognizes our commitment to the program, but also our significant efforts to promote, advance, and strengthen SmartWay. The voluntary program is a public-private initiative that promotes freight sustainability through efficiency and fuel reductions. The program first began with a focus on reducing fuel consumption from long-haul trucks, and in 2011 was expanded to increase sustainability from the trucking sector operating around marine ports.

Over the course of its 10-year history, SmartWay Partners have saved 120.7 million barrels of oil. This is equivalent to taking over 10 million cars off the road for an entire year and has helped to protect the health and well-being of locals residing close to transportation hubs. Additionally, the SmartWay Program has reduced 51.6 million metric tons of carbon dioxide so far, which contributes to our nation’s economic and energy security. EDF is excited about these achievements and proud to support these clean air efforts.

Talking Green Freight

I recently had the opportunity to speak about leading corporate green freight practices on Talking Logistics—an online weekly talk show and blog. Talking Logistics is hosted by industry expert Adrian Gonzalez and is a venue for thought leaders and newsmakers to discuss the supply chain and logistics industry.

During this discussion, we spoke about the EDF 5 Principles for Greener Freight, the actions of large freight shippers, including Ocean Spray, Caterpillar, and Boise; and the importance of freight shippers adding their voice in support of strong truck efficiency standards.

You can watch the episode here:

Freight Sustainability Forum in Dallas Engages Leaders on Supply Chain Solutions

Developing tomorrow’s innovative sustainable supply chain strategies requires knowledge, collaborative spirit, and creative thinking. EDF is helping to integrate these elements into the transportation network by highlighting successful sustainability practices already employed by industry leaders.

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At a recent freight forum co-hosted by EDF, the Las Colinas Chamber of Commerce, and the U.S.-Mexico Chamber of Commerce, we learned about best practices for co-loading heavy and lightweight freight in a single container, funding opportunities available through the Diesel Emissions Reduction Act (DERA), and intermodal strategies in key corridors. The freight transportation stakeholders in attendance ranged from cargo owners with global supply chains to international logistics providers to regional business associations.

The overarching theme of the forum was that securing emissions reductions from freight transportation is achievable through operational changes, partnerships, funding availability, and technology improvements. While many within the freight transportation community know that opportunities exist to increase sustainability and efficiency within the supply chain, not everyone implements these best management practices. Whether you are a logistics provider in Mexico, a shipper based in Texas, a global carrier or another transportation stakeholder, you play an important role in greening our logistics.

EDF also plays an important role, with a long history of working with companies to help them find ways they can improve their supply chain sustainability and efficiency, with new partnerships kicking off in the coming months. This year, we are beginning a supply chain logistics pilot as part of our highly successful Climate Corps program. We are also working on a marine port environmental performance metrics program that will help recognize top performers and share best management practices to reduce emissions. Together, all of our efforts are helping improve efficiency, reduce emissions, save costs, and protect public health.

This forum served as a launchpad for great ideas and new programs and partnerships like Climate Corps logistics and port metrics. Next time, we can share your success story!

Co-loading Your Way to Green

By Homayoun Taherian

As transportation costs continue to rise, many companies are searching for ways to reduce spending by looking beyond their supply chain boundaries and collaborating with like-minded peers.

This type of horizontal collaboration – sharing supply chain assets with competitors – is known as co-loading in the freight transportation domain. Co-loading allows multiple companies to share space on the same transportation vehicle. It’s like ride sharing for freight. Co-loading does not only help save on transportation costs, it reduces carbon emissions, wear on transportation infrastructures and air pollution, in turn, creating healthier living environments across the nation.

To better understand the significance of co-loading, we need to look at the traditional utilization of truck capacities in the US. According to various DOT statistics:
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  • 15-25% of all the miles traveled in the US by freight trucks are empty miles. That means the vehicle carries no load while traveling. These are due to empty backhauls and deadhead miles.
  • The utilization of the remaining 75-85% of the non-empty miles is on average 64%. Another way of looking at this is that we are leaving 36% of our capacity for moving freight on the table. Co-loading is a way to get the full value of each move – leading to an overall reduction in necessary trips. Read more

EDF Hosts International Freight Sustainability Strategies Forum, and You're Invited

How does supply chain sustainability help build competitive advantage? How does growth in Latin America trade create opportunities for new partnerships in the U.S.? Next Tuesday, February 25th, leading supply chain experts will gather in Irving, Texas to tackle these critical issues at a forum on sustainable logistics.

Speakers such as BNSF Railway, Dal-Tile Corporation, and EPA Blue Skyways will help drive the dialogue on innovative and cost-effective strategies for sustainable freight transportation. Attendees are also able to participate in an informal networking session at the end of the forum to exchange ideas and meet other experts working on sustainable supply chains. This event is open to supply chain sustainability champions looking to advance their knowledge and understanding of these issues. Read more

New Truck Efficiency Standards Are Great News for American Innovation

We've partnered with businesses, builders, and local communities to reduce the energy we consume.  When we rescued our automakers, for example, we worked with them to set higher fuel efficiency standards for our cars.  In the coming months, I'll build on that success by setting new standards for our trucks, so we can keep driving down oil imports and what we pay at the pump.” — President Obama. 2014 State of the Union

Global warming pollution from our nation’s heavy trucks is projected to increase by more than 130 million tons between now and 2040. This is expected to be the largest increase in emissions from any single end-use. Read more