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USPS to deploy over 66,000 battery electric delivery vehicles by 2028

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USPS to deploy over 66,000 battery electric delivery vehicles by 2028. Image: Pixabay
USPS to deploy over 66,000 battery electric delivery vehicles by 2028. Image: Pixabay
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The United States Postal Service announced that it expects to acquire at least 66,000 battery electric delivery vehicles as part of its 106,000 vehicle acquisition plan for deliveries between now and 2028. The vehicles purchased as part of this anticipated plan will begin to replace the Postal Service’s aging delivery fleet of over 220,000 vehicles.

The Postal Service anticipates at least 60,000 Next Generation Delivery Vehicles, of which at least 75% will be battery electric. As part of this plan, a total of 21,000 additional commercial off-the-shelf vehicles are also expected to be battery electric, depending on market availability and operational feasibility. The Postal Service also anticipates including internal combustion vehicles necessary to meet immediate vehicle replacement needs.

In keeping with the Postal Service’s priority to provide its carriers and communities with safer, more efficient vehicles as soon as possible, these vehicles will, unlike the vehicles they are replacing, feature air conditioning and advanced safety technology and are more suited to modern day operational requirements. For any COTS vehicles purchased, the Postal Service will include a preference for domestic manufacturing.

The announcement is enabled by the Postal Service’s overall network modernization efforts which allows for a more rapid deployment of EVs, and its improving financial condition which includes $3 billion in congressional funding appropriated under the Inflation Reduction Act.

The Postal Service will continue to evaluate and procure vehicles over shorter time periods to be more responsive to its evolving operational strategy, technology improvements, and changing market conditions, including the expected increased availability of BEV options in the future.

Postmaster General Louis DeJoy commented, “We have a statutory requirement to deliver mail and packages to 163 million addresses six days per week and to cover our costs in doing so – that is our mission. As I have said in the past, if we can achieve those objectives in a more environmentally responsible way, we will do so.”

“The Postal Service’s vehicle initiative, and I personally, have benefited from the collaborative spirit of John Podesta, Senior Advisor to the President and leader of the Office of Energy Innovation, as well as leaders within the Council on Environmental Quality and the Climate Policy Office. These professionals have demonstrated a real appreciation and understanding for how vehicle electrification can be incorporated into the Postal Service’s mission and transformation, while not distracting from it. In our own way we have all been faithful stewards of how IRA funding and Postal funding will be spent.”

“The $3 billion provided by Congress has significantly reduced the risk associated with accelerating the implementation of a nationwide infrastructure necessary to electrify our delivery fleet. While most of the electric vehicle funding will continue to come from Postal Service revenues, we are grateful for the confidence that Congress and the Administration have placed in us to build and acquire what has the potential to become the largest electric vehicle fleet in the nation.”

“What is less widely understood is that our network modernization initiative is necessary to enable this vehicle electrification and will also provide meaningful cost and carbon reductions in other ways. A key focus of our modernization effort is to reduce inefficient transportation and improve distribution operations, resulting in far less air cargo and far fewer truck trips. When combined with our substantial commitment to the electrification of our delivery vehicles, the Postal Service will be at the forefront of our nation’s green initiatives.”

Ongoing Commitment to Electrifying America’s Largest and Oldest Federal Fleet

The Postal Service has been steadfastly committed to the fiscally responsible and mission capable roll-out of electric-powered vehicles for America’s largest and oldest federal fleet. The agency has continually assessed its capacity, financial position, and vehicle mix over the past year:

  • February 2022: USPS completed its obligations under the National Environmental Policy Act process and issued a Record of Decision to acquire up to 165,000 NGDV, with a commitment for at least 10% BEV. This decision was expressly designed to provide the Postal Service the flexibility to acquire significantly more BEV NGDV should financial and operational circumstances permit.
  • March 2022: USPS announced a purchase order of 50,000 NGDV from Oshkosh Defense, including 20% BEVs.
  • July 2022: USPS announced its intent to conduct a Supplemental Environmental Impact Statement (EIS) that anticipated increasing the NGDV minimum BEV percentage to at least 50% and supplementing the NGDV order with a purchase of 34,500 COTS, so that the combined purchase would be for at least 40% BEV.
  • By May 2023: USPS will publish for public notice and comment a Draft Supplemental EIS that will assess the potential environmental impacts of vehicle purchase alternatives, likely including those from today’s announced plan.

New NGDVs are expected to start servicing postal routes in late 2023.

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Logistics & Supply Chain

Maersk uses Verity’s warehouse drones for better inventory management

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Maersk uses Verity's warehouse drones for better inventory management. Image: Maersk
Maersk uses Verity's warehouse drones for better inventory management. Image: Maersk
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Warehouse inventory management is one of the most important barometers for supply chain flow, financial cost exposure and business decision-making. It is also one of the most difficult, repetitive and tedious tasks to perform consistently in warehouses, with quality of data often questioned and requiring workers to work at heights.

“As a supply chain integrator, we are constantly looking for new innovations and engineering solutions in our warehouse operations. We wanted to deploy a safer, more accurate, data-driven inventory solution that addressed our decarbonization goals for customers and prevented our workforce from working at heights. Verity’s system has delivered data accuracy, safety and speed which makes our warehouse management system stronger, faster and more effective for customer decision-making.” said Erez Agmoni, Senior Vice President of Innovation & Strategic Growth for Maersk North America.

Verity’s warehouse drones navigate from pallet to pallet, collecting accurate inventory data in three dimensions by scanning barcodes at any height using onboard, high resolution cameras. The system requires one day of operator training, and the electric powered drones return to the battery charging pad when necessary, operating on nights or weekends and without overhead lighting turned on. The drones take photos of SKUs on pallets to identify inventory errors, such as missing or misplaced pallets. Once the data is collected, the system compares the findings with data stored in the warehouse management system and then distills that information into critical insights delivered directly to users via the user dashboard. The results are cloud-based, shareable and provide actionable warehouse data that offers better analytics for supply chain leaders.

“We view the Verity solution as an important differentiator to make our customers more competitive through higher quality, faster inventory data, ” added Mr. Agmoni.

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Logistics & Supply Chain

Topps Tiles optimises its fleet delivery capabilities with Descartes’ solution

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Topps Tiles optimises its fleet delivery capabilities with Descartes’ solution. Image: The Descartes System Group
Topps Tiles optimises its fleet delivery capabilities with Descartes’ solution. Image: The Descartes System Group
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Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, announced that Topps Tiles, the leading U.K. tile retailer, is optimising its fleet delivery capabilities with Descartes’ cloud-based route planning and optimisation solution. By working with Descartes, Topps Tiles is decreasing the average kilometers driven per delivery route by two percent and gaining a better understanding of the potential impact of changes to its delivery strategies.

“With over 300 stores nationwide in the U.K., we’re continuously evaluating how to maintain a high degree of customer service while reducing operational costs, especially today’s high transportation costs,” said Simon Macdonald, National Transport Manager, Topps Tiles. “Working with Descartes, we’ve replaced manual, spreadsheet-based processes with automated route planning to optimise the volume of tiles being delivered at any given time, as well as the routes our vehicles are travelling. Descartes’ strategic route modelling capabilities are also enabling us to model delivery scenarios and make more informed strategic decisions, which would have been nearly impossible with traditional resource-intensive analytical methods.”

Part of its Routing, Mobile and Telematics suite, Descartes’ route planning and optimisation solution helps brands, retailers and logistics providers reduce costs with more agile and efficient routing, improve fleet resource management by generating additional delivery capacity and become more sustainable through the reduction of their CO2 footprint and their use of paper across the route network. The strategic route modelling capabilities allow companies to understand and optimize their delivery and customer service strategies before having to execute them. Descartes’ mobile application helps drivers perform their daily routes, keeps managers aware of the progress and provides an accurate estimated-time-of-arrival to notify customers of their deliveries. Proof of delivery capabilities support customer service excellence and order accuracy through real-time mobile communication.

“Topps Tiles’ long-term success is based upon its ability to continually provide customers with a superior shopping experience while offering cost competitive pricing,” said Pól Sweeney, VP Fleet Sales in Europe at Descartes. “We’re delighted to help Topps Tiles minimize its operational costs today through our route planning and optimisation solution and in the future with our strategic route modelling capabilities.”

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Logistics & Supply Chain

Maersk outlines power of electrical vehicles in sustainable supply chains

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Maersk outlines power of electrical vehicles in sustainable supply chains. Image: Maersk
Maersk outlines power of electrical vehicles in sustainable supply chains. Image: Maersk
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Speaking at a Zero Emission Fleet Workshop in Phoenix, Arizona in January 2023, Maersk executives outlined what’s important in the Electrical Vehicle journey for customers to know as they plan for sustainable supply chains.

The first requirement is management commitment to the decarbonization goal of net zero and the long-term investment in its multi-year effort. In 2018, Maersk committed to Net Zero Green House Gas emissions by 2050. Last year, that date was accelerated by 10 years to 2040 across all modes and businesses as part of a comprehensive Environmental, Social Governance (ESG) plan. In March 2022, Maersk North America ordered 436 Electrical vehicles (Class 8 trucks) to replace diesel trucks. Decarbonizing inland transportation through heavy duty, electric trucks and the creation of charging station infrastructure benefits supply chains and communities, and is central to Maersk’s inland transportation ESG plans.

“By using Class 8 electric trucks, we will be reducing traffic noise and emissions in the communities we serve to fully comply with upcoming regulations. Our goal in the near future is for Maersk North America to be charging our entire fleet with 100 percent renewable electricity to offer our customers an environmentally-friendly alternative for short-haul trucking.” said Carlo Bertani, Maersk’s North America Environmental Manager.

The second requirement in EV operations is the ability to scale and look for partners. Maersk partnered with TEC Equipment – a Volvo Trucks’ Certified EV Dealership, who helped identify the ideal truck configurations needed to operate daily freight routes. This partnership allowed Maersk to leverage Volvo Trucks’ Electric Performance Generator (EPG) tool, which simulates real-world routes and determines which ones are best suited based on environmental factors such as route details, traffic patterns, speed, payload, terrain and ambient temperature. The EPG also considers if an opportunity charge (the optimal location for charging infrastructure) would be required. Volvo Trucks turnkey solution is used for the first six years of ownership that provides 24/7 support, scheduled and preventative maintenance, towing and vehicle repair (including the energy storage unit and the complete electromobility system) to ensure peak vehicle uptime, performance and productivity.

“Both Volvo Trucks and TEC Equipment continue to go above and beyond to support our growing battery-electric fleet operations. One example is the ongoing training they are providing to help our drivers optimize the range of the Volvo VNR Electric, including how to leverage regenerative braking benefits to add power back to the battery.” commented Michael Gallagher, Head of Indirect Sourcing, North America, at Maersk North America.

One of the challenges with the operation of Class 8 EVs is the lack of charging infrastructure. To mitigate this, Maersk is working cooperatively with public utilities and local officials to ensure that charging infrastructure is built in strategically-placed locations to maximize the efficiency of trucking operations. The company also worked with their warehouse leasing partner’s mobility unit, Prologis Mobility, to combine electric charging infrastructure into existing warehouse facilities to optimize truck deployment.

To comply with future regulations, Federal, State and Local funding incentives are aimed at accelerating scalability of EVs. EVs and battery performance are still in the early years of adoption and do not come without challenges. The cost of an electric vehicle is 2-3x more than a diesel vehicle and while battery performance will evolve to improve in duration and weight reduction, the reality is that early adopters of the technology are working to determine the best path forward. For example, current battery technology averages 275 miles on a full charge and a battery can add >6000 lbs. of extra weight to a truck. Charging time depends on the battery’s state of charge, the charging rate of the dispenser and the truck’s ability to accept a certain rate of charge. Initial charging times are approximately 75 minutes but are improving over time.

Regulatory compliance with climate change goals in California and New York are bringing new mandates for all new trucks to be zero emissions by 2045. The State of California has a target of 100 percent of passenger and light-duty truck sales to be zero emissions by 2035, medium and heavy-duty trucks by 2045.

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