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Challenges with EV adoption by J.B. Hunt

Paul Young

Experience Senior Financial Planning, Analysis and Reporting SME seeking P/T or F/T job.

发布日期: 2024年5月26日

Excellent article by J.B. Hunt Transport Services, Inc. and Shelley Simpson

If J.B. Hunt was to electrify its entire fleet of trucks, it would require the electricity draw consumed by 1.4 million households – or 1% of the entire U.S.

“Who’s willing to give their electricity up to power their home, for us to charge our entire fleet?” That was the sobering question posed by @Shelley Simpson, president of J.B. Hunt Transport Services, speaking at ACT Expo. “Imagine what it would take to power all the electric vehicles in the U.S., in addition to all the passenger vehicles.”

Key issues:

She said it’s estimated the U.S. would have to increase its electricity production by 40% to charge all registered vehicles in the country.

If J.B. Hunt was to electrify its entire fleet of trucks, it would require the electricity draw consumed by 1.4 million households – or 1% of the entire U.S.

Key points raised:

She said it’s estimated the U.S. would have to increase its electricity production by 40% to charge all registered vehicles in the country.

While Simpson was candid about the prospects for electrifying the trucking industry, she was more optimistic about other ways of reducing trucking’s carbon footprint. J.B. Hunt itself is looking to reduce its environmental impact by 32% by 2034. It has a three-pillar strategy consisting of alternative equipment, biogenic fuels, and improvements in fuel economy.

J.B. Hunt now derives 24% of its fuel from renewable sources at cost near parity with diesel. This has helped it achieve a 16% reduction in its carbon emission intensity, achieving half of its 32% goal from a 2019 baseline.

Improved fuel economy has also helped it approach its targets. The fleet has an average tractor age of 2.3 years, allowing it to take advantage of the latest technologies. It spec’s all aerodynamic options, governs its speed, and employs cab heaters and automated manual transmissions.

However, Simpson noted customers also have a role to play in reducing transportation’s carbon footprint. J.B. Hunt has created proprietary tools to help its customers understand their carbon emissions and to offer methods of reducing it. They are met with mixed reaction. An option to offset emissions with the purchase of carbon credits has not been accepted by a single customer, Simpson said.

Source - https://www.trucknews.com/sustainability/j-b-hunt-president-casts-doubt-on-electrification-shares-more-cost-effective-ways-to-decarbonize/1003185500/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202024-05-23%20Trucking%20Dive%20%5Bissue:62364%5D&utm_term=Trucking%20Dive

This comes back to capturing and then auditing the data. Coordination with the Scope 3 objective is critical to managing the overall ESG footprint throughout the supply chain cycle.

This ties nicely to an article that I have authored on the transportation sector - Blog – Transportation Sector – Analysis and Commentary – April 2024 - https://www.dhirubhai.net/pulse/transportation-warehousing-logistics-distribution-april-paul-young-v9a6c/

Paul Young CPA CGA

Paul is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industry and geographies for the past 8 years. Paul is a Financial Planning, Analysis, and Reporting SME working with data including integration of macro and micro indicators as part of the integrated business planning and reporting cycle.

[email protected]