A report has cautioned that transitioning fleet trucks to electric could lead to cost increases of up to 114 percent.

 A report has cautioned that transitioning fleet trucks to electric could lead to cost increases of up to 114 percent.

Ryder, a transportation and logistics firm based in Florida, has issued a recent warning about the economic impacts of transitioning traditional truck fleets to electric vehicles (EVs). The firm's analysis reveals that converting internal combustion engine (ICE) trucks to EVs results in a notable increase in annual operational costs, which in turn contributes to economic inflation.

According to Ryder's report released on May 8, the cost analysis shows a five percent rise in expenses for light-duty EVs, while heavy-duty trucks experience a substantial surge of 94–114 percent. For a mixed fleet of 25 vehicles encompassing light, medium, and heavy-duty trucks, costs escalate by 56–67 percent.

These escalating transportation costs directly influence the prices of goods in markets nationwide. Ryder estimates that such increases could eventually contribute approximately 0.5-1 percent to overall price inflation in the economy.

Karen Jones, EVP and head of new product development at Ryder, emphasized the limited applicability of EV adoption in current scenarios. She highlighted the existing gap in total cost to transport (TCT) for heavier duty vehicles and expressed concerns about regulatory pressures to accelerate broader EV adoption amidst ongoing technological and infrastructural developments.

Jones cautioned that until this TCT gap for heavier duty vehicles is minimized or resolved, widespread transition to EVs may not be feasible for many companies. Moreover, if compelled to transition in the current market landscape, the industry could face heightened supply chain disruptions, increased transportation costs, and additional inflationary pressures.

In specific regions like California and Georgia, the annual TCT increase for heavy-duty EV tractors was notably high, reaching approximately $315,000 and over $330,000, respectively. In both cases, equipment costs emerged as the primary contributor to the surge, soaring by 500 percent.