12 Proven Strategies for Greening Your Fleet

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2 12 Proven Strategies for Greening Your Fleet By Lisa H. Harrington When people think of the green movement i.e., environmentalism they don t automatically think of the big Class 8 rigs that travel the nation s highways. But trucks have a huge role to play in America s move toward energy conservation and a cleaner environment. The U.S. Department of Energy estimates that a one percent increase in fuel efficiency for long-haul trucks would save 100 million gallons of fuel a year. For a number of reasons regulatory and other leaders in the trucking sector are taking steps to become better environmental stewards. In fact, these leaders are finding that green fleets are good business. Green fleets reduce expenditures through improved fuel economy and overall efficiency, while generating less environmental impact through a combination of cleaner fuels and vehicles, and better driver and logistics management practices. There are four main ways to green a fleet, according to the Puget Sound Green Fleets Guide, a joint project of the Puget Sound Clean Air Agency and the Puget Sound Clean Cities Coalition. These include: 1) Purchase and use greener vehicles 2) Use greener (i.e., cleaner burning) fuels 3) Increase the efficiency of the fleet, regardless of the fuel used, and 4) Reduce the vehicle miles traveled by the fleet. Implemented individually or collectively, these strategies can help businesses large and small meet the challenge of balancing fiscal responsibility with the need to adopt more sustainable practices. The Regulatory Catalyst The U.S. Environmental Protection Agency (EPA) has taken a lead role in promoting greener over-the-road truck fleets. In 2000, the EPA moved forward with its rule to make heavy-duty trucks and buses run cleaner, and the Highway Diesel Rule (the "2007 Highway Rule") was finalized in January This regulation stipulated that diesel fuel would be formulated to reduce the harmful pollution from heavy-duty highway vehicles by more than 90 percent. To accomplish this radical decrease in pollutants, the EPA rule required a 97 percent reduction in the sulfur content of highway diesel fuel from its then current level of 500 parts per million (low sulfur diesel, or LSD) to 15 parts per million (ultra-low sulfur diesel, or ULSD). Refiners began producing the cleaner-burning diesel fuel, ULSD, for use in highway vehicles beginning June 1, Concurrently, the EPA required truck engine manufacturers to redesign their engines to run on ULSD and in so doing, meet the drastically reduced emissions standard, beginning with the 2007

3 model year. These new cleaner engines use a catalyzed diesel particulate filter and optimized combustion, together with ULSD, to meet the requirement. Older truck engines can be retrofitted. By addressing diesel fuel and engines together as a single system, the EPA expects its program to reduce annual emissions equivalent to removing the pollution from more than 90 percent of today's trucks and buses, or about 13 million trucks and buses, when the current heavy-duty vehicle fleet has been completely replaced in This is the greatest reduction in harmful emissions of soot, or particulate matter (PM), ever achieved from cars and trucks, the EPA says. Once this action is fully implemented, environmental benefits will include: A 2.6 million ton reduction in smog-causing nitrogen oxide (NOx) emissions each year, and A 110,000-ton reduction in particulate matter per year. In the long term, the EPA expects this program to result in more than $70 billion annually in environmental and public health benefits at a cost of $4 billion per year. EPA s SmartWay Program Since issuing its Highway Diesel Rule, the EPA has worked closely with the trucking sector manufacturers and operators to prepare for and embrace the new emissions standards. Specifically, in 2004, the agency launched The SmartWay Transport Partnership program, a collaboration between the EPA and the freight industry to increase energy efficiency while significantly reducing greenhouse gases and air pollution. SmartWay Transport establishes incentives for fuel efficiency improvements and greenhouse gas emissions reductions. By 2012, this initiative aims to reduce between million metric tons of carbon dioxide (CO2) emissions and up to 200,000 tons of nitrogen oxide (NOx) emissions per year. At the same time, the initiative will result in fuel savings of up to 150 million barrels of oil annually. To encourage truck and trailer manufacturers to design more fuel efficient products, the EPA instituted the SmartWay certification program. The EPA Certified SmartWay tractors and trailers are long-haul truck components with significantly lower emissions and fuel consumption. The EPA and leaders in the freight equipment-manufacturing industry worked together to develop these performance qualifications. In March 2007, truck and trailer manufacturers began offering customers 2007 models carrying the EPA's SmartWay Certification. SmartWay-approved equipment, like aerodynamic bumpers and mirrors on a tractor, can generate fuel reduction of 10 to 20 percent more than trucks without these devices. For example, aerodynamic bumpers and mirrors on a tractor help conserve fuel by reducing wind resistance. Each qualified truck can produce savings from 2,000 to 4,000 gallons of diesel per year, which would result in a gain up to $11,000 annually, the EPA calculates. The basic specifications for a U.S. EPA-Certified SmartWay tractor are: Model Year 2007 or later engine Integrated cab-high roof fairing Tractor-mounted side fairing gap reducers Tractor fuel-tank side fairings Aerodynamic bumper and mirrors Options for eliminating periods of extended engine idling (auxiliary power units, auxiliary cooling units, battery pack with start/stop system, bunk heater units) Options for low-rolling resistance tires (single-wide or dual) mounted on aluminum wheels. 2

4 The basic specifications for a U.S. EPA Certified SmartWay trailer include: Side skirts Weight-saving technologies Gap reducer on the front or trailer tails (either extenders or boat tails) Options for low-rolling resistance tires (single-wide or dual) mounted on aluminum wheels. Fleets can order new long-haul van trailers and upgrade to qualify as Certified SmartWay trailers. In addition to the SmartWay equipment certification, the EPA recognizes truck fleets that adopt green practices with an annual excellence award. In 2007, the agency bestowed this honor on 35 companies including Contract Freighters, Meijer, Schneider National and Smithfield Transportation Co. (see sidebar). Strategies to Reduce Fleet Emissions New truck engines are only part of the solution for cutting heavy truck emissions. The selection of mechanical components that are right-sized for the job can positively impact fuel economy. Thus, matching the engine, transmission, rear axle and ratio to the specific load requirements, application and geography/terrain the vehicle will operate in can make a significant difference. Additionally, there are a number of operational practices and other technologies that highway fleet operators/carriers can adopt significantly reduce emissions, save fuel and, ultimately, lower costs. The following list, based on the EPA recommendations, as well as those of truck and trailer manufacturers, and green fleet organizations, highlights some of these options. 1. Reduce Idling Idle management is both an important regulatory and cost-of-operation issue. Today, more than 20 states have idling regulations and enforcement is increasing. Recent studies estimate the average over-the-road truck idles 1,460 hours per year, according to heavy truck manufacturer Peterbilt. For a truck with a 15-liter engine, this equates to around 1,600 gallons of fuel used idling annually. Using $2.47 as the cost for a gallon of diesel, this amounts to almost $3,900 in wasted fuel. And that may be a conservative figure with some fleets reporting idling time as high as 42 percent. In addition to training drivers to curtail idling, carriers/fleet operators can install on-board idle reduction systems. These include auxiliary power units that provide electricity to the cab, directfired heaters and coolant systems to provide temperature control, and programmable automatic engine shut-off systems. Modernized truck plazas equipped with truck stop electrification systems allow trucks to draw electrical power and in some cases heating, cooling, telecommunication and Internet hookups from a ground source. 2. Improve Aerodynamics According to the EPA, improving the aerodynamics of a typical line-haul truck by 15 percent could cut annual fuel use by more than 2,000 gallons, save over $3,500 in fuel costs, and eliminate 20 metric tons of carbon dioxide. More than 50 percent of energy expenditure by Class 8 trucks occurs in overcoming aerodynamic drag at highway speeds. Tractor aerodynamics can be improved by adding integrated roof fairings, cab extenders, side fairings and air dams. New truck buyers can purchase aerodynamic models with streamlined profiles. 3

5 For example, in addition to being a key factor in operator comfort and productivity as well as a tool to enhance driver attraction and retention sleepers have a significant impact on aero performance. Choose a sleeper package appropriate for the trailer that is to be pulled. A high-roof sleeper is more ideal for van and reefer trailers. Remove accessory components from the air stream wherever possible. Truck manufacturer Peterbilt recommends using underhood-mounted air cleaners, rather than cowl mounted, to reduce aerodynamic drag and improve fuel economy by one percent to two percent. Configure the exhaust on the back of the sleeper to further reduce drag and increase fuel economy by another one percent to two percent. Using a roof fairing with van trailers can cut fuel consumption by 5 percent to 10 percent, and cab extenders help close the gap between the truck and trailer for further reductions, according to Peterbilt. Chassis fairings can provide an additional one percent to two percent improvement, as can aerodynamic mirrors. Wheelbase and fifth-wheel settings also play a key role and should be chosen to accommodate the trailer as close to the back of the cab/sleeper as possible. Decreasing the trailer gap by 10 inches can result in a 0.5 percent to 1 percent increase in fuel economy, Peterbilt says. Trailer aerodynamics can also be improved by adding side skirts and rear air dams, and arranging cargo and tarpaulins as low, taut and smooth as possible. For example, Wal-Mart has worked with trailer manufacturer Great Dane to develop a drop-frame 53-ft. trailer with a rounded nose and underskirts that drop down automatically when the vehicle exceeds 35 mph. The rear section, including sides and top, is tapered inwards and the roll-up rear door is recessed inside the trailer about two feet, resulting in an aerodynamic "boattail" effect without any added length. Comprised of lightweight components, the trailer's 16-inch drop frame compensated for any loss of cube volume. Road tested by International Truck and Engine Corp., the Great Dane trailer's aero design yielded promising results a 20 percent reduction in drag and double-digit fuel savings (achieved without super-single tires). 4

6 3. Reduce Engine Power Settings Engine power settings have unique torque, horsepower and fuel consumption curves. Reducing engine displacement from 15 liters to 11 or 13 liters will improve fuel economy by up to seven percent and will reduce chassis weight to allow for additional payload, Peterbilt says. Carefully evaluate the need for extra horsepower and torque versus fuel economy. Not only does a 15-liter, high-horsepower engine increase the cost of the truck at retail, it continues to accumulate costs throughout the life the vehicle. If the size and power aren t necessary for the customer s requirements, don t spec it. 4. Tailor Transmissions to the Job Select a transmission with gears that accommodate conditions the vehicle will normally operate within. A gear set that has the truck cruising at the wrong rpm may decrease fuel economy by up to 15 percent, Peterbilt explains. Automated transmissions can result in up to eight percent better fuel economy, and are more forgiving to operator performance, another key factor in improving fuel economy. 5. Improve Freight Logistics Better logistics management can reduce the miles that a truck drives empty. Eliminating 15 percent of a line-haul truck s empty miles could save $3,000 in fuel and reduce 24 metric tons of carbon dioxide annually, the EPA says. Out-of-route miles are simply wasted fuel and can account for between two percent and five percent of total vehicle mileage annually, Peterbilt estimates. For example, in a 130,000-mile year, if three percent are out-of-route, that s 3,900 unnecessary miles. If the vehicle averages six mpg, it will require 650 additional gallons of diesel. At $2.47 per gallon, that s $1,600 of addition operating cost, lowering margins and profitability. Route optimization and on-board navigation systems can virtually eliminate out-of-route miles and the unwanted costs they create. Improved logistics includes load matching, more efficient routes and delivery schedules, and improved shipping and receiving practices. A carrier may employ low-cost options like triangular routing, coordinating loads with other fleets, and checking electronic load boards, or it may purchase freight broker services and logistics software. On the shipper s side, pallet and load optimization technology reduces freight costs and product damage while improving shipment safety and compliance with customer and legislative trailer loading requirements. Software from Red Prairie, for instance, performs a two-stage optimization that directs the pallet build process, and then optimizes pallet placement during the loading of trailers. The system can increase trailer volume utilization by three to six percent. RedPrairie s solution also considers stackability, crushability, nesting and other positioning factors to build pallets and loads that are safe and minimize the potential for damage. And the trailer load plan computes weight over the axles and side-to-side balance specific to each trailer type to ensure compliance with transportation regulations. 6. Reduce Rolling Resistance Rolling resistance the friction between the tires and the surface they travel over accounts for about one-third of a truck s fuel consumption, Peterbilt says. So, reducing rolling resistance by three percent improves fuel economy by about one percent. While most operators have little if any control over the surface their vehicles transverse, they do over the performance of their tires. 5

7 Proper tire pressure generally trims rolling resistance and provides better fuel economy. Retrofitting a line-haul truck with an automatic tire inflation system could save 100 gallons of fuel annually and reduce tire wear and maintenance, while eliminating one metric ton of carbon dioxide, according to the EPA. Truck fleets that find it too difficult or expensive to monitor tire pressure on a regular basis should consider installing automatic tire inflation (ATI) systems on drive and trailer tires. An ATI system used on a typical line-haul truck can generally pay for itself in just over two years, while decreasing the risk of expensive tire failure caused by under inflation. The faster the truck goes, the less fuel efficient the tires become. Even with fuel-saving tires, an increase in speed from 55 to 75 mph can cut tire fuel efficiency by nearly half. Tread depth plays an important role in fuel economy. As tread wears, fuel efficiency usually increases. However, too much wear has the opposite effect. Tread depth should be routinely monitored and tires should be replaced as recommended by the manufacturer. Specifying single wide-base tires on a new combination truck could save $1,000 immediately and reap annual fuel savings of two percent or more while cutting carbon dioxide by more than four metric tons, the EPA states. Single wide-base tires save fuel by reducing vehicle weight, rolling resistance and aerodynamic drag. These tires can also improve tank trailer stability by allowing the tank to be mounted lower. Finally, maximize tire performance by selecting tires made specifically for the axles to which they will be mounted. Fuel-efficient tires are more effective on trailers than tractors. 7. Train Drivers to Drive More Efficiently Even highly experienced drivers can boost their skills with training aimed at raising fuel economy by five percent or more, which, according to the EPA, could save $1,200 in annual fuel costs and cut eight metric tons of carbon dioxide. Effective driver training programs can improve fuel economy by five percent or more. Some fleets report fuel economy gains of up to 20 percent. Among other techniques, drivers learn progressive shifting, engine speed optimization, idle reduction, smoother braking and acceleration, anticipatory driving, speed control and optimal gearing. Controlling speed at which the driver operates the vehicle has the greatest impact on efficiency. The general rule is that for every one mile per hour increase above 50, fuel mileage will be reduced by 0.1 mpg, Peterbilt notes. For instance, if cruising speed is reduced from an average of 70 to 60 mph, fuel efficiency improves by one mpg. For a fleet of 150 trucks, reducing speeds from 70 to 60 mph could equate to more than $1.6 million in additional fuel cost savings. In most cases, cruise control technology manages fuel economy better than an average driver, providing up to six percent fuel savings. 8. Use Low-Viscosity Lubricants When used in a line-haul truck, the EPA estimates that synthetic engine and drive train lubricants can improve fuel economy by three percent, saving nearly 500 gallons of fuel and cutting five metric tons of carbon dioxide annually. Low-viscosity synthetic or semi-synthetic lubricants flow more easily and withstand the extreme pressure of engine, transmission and drive train systems better than conventional mineral oil blends. The operator of a typical line-haul truck can save up to $500 annually by switching to low-viscosity lubricants, with additional savings possible due to reduced wear and maintenance of truck systems. 6

8 9. Ship Intermodal When Possible Intermodal freight transport combines the best attributes of both truck and rail shipping. Over long distances, using intermodal can cut fuel and carbon dioxide by 65 percent, compared to truckonly moves. Carriers can maximize resources by using freight trains to handle the long-distance portion of a freight move, especially for less time-sensitive cargo that is shipped over 500 miles. 10. Consider Hybrid Technology or Alternative Fuels Hybrid vehicles can provide roughly $2,000 in fuel savings and cut carbon dioxide by up to 12 metric tons per year when used in stop-and-go freight applications like parcel delivery service, the EPA says. Hybrid vehicles have two propulsion power sources, making it possible to capture energy otherwise lost during braking and provide boost to the main engine which in turn can run more efficiently. Most hybrid vehicles use an internal combustion engine for the main power source with various secondary power and energy storage configurations, including electric and hydraulic systems. Peterbilt recently unveiled the Model 386 Heavy-Duty Hybrid, a joint-development vehicle with Wal-Mart Stores Inc. and Eaton. On the road, the expected benefit of the hybrid engine is five to seven percent through improved launching, accelerating and hill climbing capabilities. When the idle reduction mode is active, engine operation is limited to battery charging, an automatically controlled process that takes approximately five minutes per hour to fully charge the system. The engine accomplishes a 90 percent reduction in idling during rest periods, while providing highpower A/C, 120VAC, and 12VDC to accommodate the sleeper hotel loads. PACCAR and Eaton Corporation recently announced they have entered into an exclusive agreement to jointly develop proprietary hybrid technology for heavy-duty commercial vehicles in North America. The innovative new products will be introduced in Peterbilt Class 8 trucks for the North American market, targeted for initial production by the end of International and Mack/Volvo are developing heavy-duty hybrid trucks as well. Wal-Mart has also been working with Westport Innovations and Peterbilt on developing liquefied natural gas-fueled trucks to deploy at one of the retailer s California distribution centers. Westport, which makes gaseous-fuelled power technologies, said the deployment will be supported in part by funding from the Mojave Desert Air Quality Management District. Wal-Mart operates one of the nation s largest private fleets with more than 7,000 trucks. The trucks will use engines made by Cummins Inc., based on the Cummins ISX diesel engine with cooled exhaust gas recirculation technology. The LNG version of the engine offers the same horsepower, torque, and efficiency as the base diesel engine rating it is replacing, the companies said. Westport expects its LNG fuel system to help Wal-Mart reduce their fleet vehicles greenhouse gas emissions by some 20 percent and nitrogen oxide emissions by between 30 percent and 50 percent over their diesel equivalents. 11. Reduce Highway Speed A line-haul truck with 90 percent highway miles that reduces its top speed from 70 to 65 miles per hour could cut its annual fuel bill nearly $1,500 while eliminating almost 10 metric tons of carbon dioxide, according to the EPA. Reducing highway speed also reduces engine and brake wear, which cuts down the cost and frequency of maintenance service, and keeps revenue-earning equipment on the road longer. Any motor carrier can adopt a speed management policy at little or no cost. The most successful speed reduction policies combine electronic engine controls with driver training and incentives. 7

9 12. Reduce Weight Cutting 3,000 pounds from a line-haul truck by using lighter-weight components could save up to 500 gallons of fuel annually and eliminate up to five metric tons of carbon dioxide. Aluminum alloy wheels, axle hubs, clutch housings and cab frame can trim hundreds of pounds from a tractor. Downsizing to a smaller engine can also provide significant weight savings. Thousands of pounds can be reduced from a trailer by spec ing aluminum roof posts, floor joists, upright posts, and hubs and wheels. Making a Difference Taken together, these 12 green fleet initiatives can make a tremendous difference to the U.S. environment and, in the process, save hundreds of millions of dollars. Consumers and shareholders increasingly are demanding that companies take a stand on helping the environment. Clearly, for fleet operators whether private or for-hire -- it makes good business to do so. Harrington, Lisa H. - Principal, Harrington Associates - Lisa Harrington is principal of Harrington Associates, a consulting and marketing/communications services firm focused on supply chain management, logistics, transportation, warehousing and related technology. Ms. Harrington is cofounder of and a senior fellow at the Supply Chain Management Center, R.H. Smith Graduate School of Business, University of Maryland where she is also an adjunct professor of supply chain management. She is the co-author of two books, In Real-Time: Managing the New Supply Chain (2004), and Logistics and the Extended Enterprise: Benchmarks and Best Practices for the Manufacturing Professional (1999). Ms. Harrington s frequent articles appear in FORTUNE, Industry Week, The Economist, Inbound Logistics, CIO and many other publications. 8

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