Jay Inc.

Andres Zuniga, Thomas Ash, Delfino Mauridi

Sandi Hubnik
ENG-2311
9 November 2019

ELECTRIC SEMI-TRUCKS
WILL HELP REDUCE THE
COMPANY’S SHIPPING
BUDGET
 Table of Contents
Abstract………………..………………………………………………………………… ii

Introduction………..………………………………………………………………………1

Purpose……………………………………………………………………………...

Problem……………………………………………………………………………..

Benefits………………..…………………………………………………………………..2

Costs……………………………………………………………………………………….2

Concerns…………………………………………………………………………………..3

Conclusion/Summary……………………………………………………………………..4

Glossary…………………………………………………………………………………...5

Works Cited……………………………………………………………………………….6

i
 Abstract

Advancement in vehicle technologies has provided new opportunities for Jay Inc. to limit

spending on maintaining and operating their truck fleet. Currently, Jay Inc. is wasting an

unnecessary amount of time and revenue operating and maintaining its diesel fleet. By

transitioning from a diesel to an electric fleet, the company would eliminate wasted

resources. An all-electric fleet would create a more efficient shipping process.

ii
 Introduction

Purpose

The purpose of this research report is to provide the company with information about the

cost, benefits, and concerns of electric semi-trucks. As a result of my team’s research, we

have concluded that electric trucks are far more cost-effective and efficient than diesel

trucks.

Problem

Currently, Jay Inc. is using too much of its budget on shipping cost each year. The

majority of our shipping and handling budget goes to the cost of fuel and maintenance on

our current fleet of all diesel trucks. With the rising cost of fuel and an increase in

emission regulations, Jay Inc. will not be able to afford these costs in the years to come.

1
Benefits

Safety is always a top priority with semi-trucks. Electric semi-trucks come with many

safety improvements. The electric semi-trucks lower center of gravity helps reduce the

chances of the semi-trucks rolling over in an accident. The use of batteries, and not a

combustible engine, helps reduce the chance of explosions or the truck catching fire.

Electric trucks are also beneficial to the health of the company and the communities that

they operate in. Among all the health benefits, electric trucks emit no direct fumes.

Therefore, their use helps reduce the number of greenhouse gases and other harmful

pollutants in the air. Diesel trucks burn fuel that produces gases like carbon monoxide,

which can cause health concerns if inhaled. Electric trucks use batteries that have fewer

moving parts than diesel engines. The extra space created by the missing parts gives truck

drivers ample room to be comfortable while driving and resting.

Cost

The starting average price for an electric semi-truck is around $150,000, which is

$30,000 more than an average diesel truck. The “overall operating cost of $1.26 a mile

for the [electric] Semi versus $1.51 a mile for a competitive diesel truck…” can save the

company revenue over the truck’s lifetime (Hirsch). A diesel truck can waste thousands

of dollars in maintenance and fuel costs. Electric trucks would phase out the need to

maintain engines, transmissions, and exhaust systems. Often the cost “...of repairing,

refueling and maintaining an electric vehicle [is] lower. Yearly spending on those

expenses runs $35,676 for a [single] diesel truck” (Hirsch). An electric semi-truck would

reduce the cost to less than half of that. Electric trucks batteries are designed to “support

2
1 million miles of charging cycles - 2,000 cycles if you charge every 500 miles, 5,000

cycles if you charge every 200 miles” (Howard). A truck driver would be able to fully

charge the trucks battery in under 3o minutes, this would increase the number of miles a

driver can potentially drive, and reduce the need to stop and refuel. The company will

also be able to take advantage of government tax credits for electric vehicles. The “IRS

tax credit is for $2,500 to $7,500 per new EV (Electric Vehicle) purchased for use in the

U.S. beginning on January 1, 2019” (IRS). The tax credit would allow the company to

receive money back for every truck the company acquires.

Concerns

Being a new technology, there are many concerns when it comes to converting to electric

trucks. While diesel trucks have the potential to take much longer trips, our company

only ships locally, typically around 250 miles or less, which eliminates this as a concern

to our company. Diesel trucks also have a long history of being reliable and lasting

upwards of 1 million miles with regular maintenance, and when they do break down,

there are plenty of aftermarket parts to fix them. However, electric trucks have fewer

moving parts than diesel trucks and many manufacturers of these trucks, such as Tesla,

have guaranteed their parts to last up to 1 million miles.

3
Conclusion/Summary

Vehicle technologies and regulations are quickly changing with the introduction of

electric and hybrid vehicles. Implementing an electric fleet would be beneficial to the

company and the company’s employees. Jay Inc. is wasting valuable resources by

maintaining their outdated truck fleet. By transitioning to an all-electric fleet, Jay Inc. is

able to eliminate wasted resources and take advantage of newer technologies. An all-

electric fleet would limit the companies spending on maintenance and operation costs. By

going “green”, the company will have a better image with the public. Transitioning to an

electric fleet provides for far more efficient driving schedules and shipping processes .

4
 Glossary

Carbon Monoxide - a colorless, odorless toxic flammable gas formed by incomplete

combustion of carbon

Combustible - capable of catching fire and burning

Emission - the production and discharge of something, especially gas or radiation

Pollutant - a substance that pollutes something, especially water or the atmosphere

Charge Cycle - the process of charging a rechargeable battery and discharging it as

required into a load

Tax Credit - an amount of money that taxpayers can subtract from taxes owed to their

government. Unlike deductions and exemptions, which reduce the amount of taxable

income, tax credits reduce the actual amount of tax owed

5
 Works Cited

“Benefits of Electric Cars.” Ergon Energy,

www.ergon.com.au/network/smarter-energy/electric-vehicles/benefits
-of-electric-vehicles.

“Exploring the Health Benefits of EVs.” FleetCarma, 17 Sept. 2018,

www.fleetcarma.com/exploring-health-benefits-evs/.

Hirsch, Jerry, et al. “Here's Everything We Know About the Tesla Semi.”

Trucks.com, 20 Sept. 2019, www.trucks.com/2019/09/05/everything-we-know-

about-the-tesla-semi-truck/.

Howard, Bill. “Tesla Semi: 500-Mile Range, Cheaper Than Diesel, Quick to

Charge.” ExtremeTech, 17 Nov. 2017, www.extremetech.com/extreme/259195-

tesla-semi-500-mile-range-cheaper-diesel-quick-charge.

McFadden, Christopher. “Diesel Engine vs. EV: Which Is Better?” Interesting

Engineering, Interesting Engineering, 17 Mar. 2019,
interestingengineering.com/diesel-engine-vs-ev-which-is-better.

Portillo, Patricio. “Will California Say Bye to Diesel-Burning Trucks and Hello

to Zero-Emissions Ones?” GreenBiz, GreenBiz Group Inc., 9 Oct. 2019,

www.greenbiz.com/article/will-california-say-bye-diesel-burning-trucks-and-
hello-zero-emissions-ones.

“Saving on Fuel and Vehicle Costs.” Energy.gov,

www.energy.gov/eere/electricvehicles/saving-fuel-and-vehicle-costs.

“Tax Credits for Buying Alternative, Electric Motor Vehicles.” IRS Alternative,

Electric Drive Motor Vehicle Tax Credits., www.efile.com/tax-credit/hybrid-car-

tax-credit/.