Supply Chain Optimization

Fun Webinar and Government Inflating Trucking Costs

Trucking costs to rise.  The incredibly poorly named “Inflation Reduction Act”  seems to be pushing precisely in the opposite direction. The act subsidizes zero-emission (electric and Hydrogen) vehicles and infrastructure.  This allowed the EPA to promulgate restrictive rules:  By 2032; a significant percentage of  truck sales will need to be zero-emission: 

  •  60% of new urban delivery trucks
  •  25% of long-haul tractor sales by 2032. 

Never mind if the infrastructure doesn't exist for hydrogen electric trucks with these costing 2 to 3 times more than diesel-powered vehicles. And, of course, there is a diminished weight-carrying capacity of battery-powered vehicles, so shippers will initiate more loads to ship the same amount of stuff. But the bottom line is freight costs will rise.

Fun facts:  20% of US electricity is produced by burning coal and 40% by burning gas.  Most hydrogen is made from gas. 

The Fun Webinar:  Jake Barr and I are on a Supply Chain Now  Webinar  ('Making planning "play nice” with operations') on April 18 at Noon ET.  Please sign up here: