Electrifying Medium-Duty Fleets

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Medium-duty fleets, including box trucks, delivery vans, and service vehicles, are becoming top candidates for electrification. With lower operational costs, reduced emissions, and predictable route patterns, these vehicles are well-suited for EV adoption. However, transitioning to electric comes with challenges such as balancing range and payload, managing charging infrastructure, and maintaining uptime in high-demand operations.

Beyond environmental benefits, electrifying medium-duty fleets offers substantial cost savings. Studies have shown that electric trucks can have a total cost of ownership (TCO) up to 31% lower than their diesel counterparts, depending on the vehicle type and usage patterns. These savings are primarily due to lower fuel and maintenance costs. Electricity is generally less expensive than diesel fuel, and electric vehicles have fewer moving parts, resulting in reduced maintenance expenses. As battery technology advances and economies of scale improve, the financial advantages of transitioning to electric medium-duty fleets are expected to become even more compelling.

In this post, we’ll explore the unique considerations for three types of medium-duty fleets: delivery fleets, shuttle fleets, and service fleets. We’ll dive into their EV charging needs, compare Level 2 and DC fast charging, and highlight essential EV management software features to streamline operations.

Which medium-duty fleets are electrifying?

Medium-duty fleets operate in a variety of industries, but those with consistent routes and centralized depots are leading the way in electrification. Examples include:

• Delivery fleets: Last-mile operations such as Amazon, Purolator, and UPS, delivering parcels on predictable routes in urban and suburban areas.
• Shuttle fleets: Campus or airport shuttles, like those operated by universities or transit authorities, provide scheduled transportation along fixed routes, often with frequent stops.
• Service fleets: Utility trucks for maintenance and repair, such as Southern California Edison’s fleet of Chevy Silverado EV trucks.

These fleets are leveraging EVs to reduce fuel costs, meet emissions regulations, and maintain operational efficiency.

Charging infrastructure: Level 2 vs. DC Fast Charging

Choosing the right charging infrastructure is crucial for medium-duty fleet operations. Here’s a breakdown of when to use Level 2 chargers versus DC fast chargers:

Level 2 Charging

• Best for: Vehicles parked overnight or during extended downtimes.
• Use case: Delivery fleets with centralized depots can charge their trucks overnight to ensure readiness for the next day.
• Example: Purolator uses Level 2 chargers for its medium-duty electric vehicles, charging them overnight at centralized depots to ensure readiness for daily delivery routes

DC Fast Charging

• Best for: Fleets with high turnover or mid-route charging needs.
• Use case: Service fleets benefit from quick charging during breaks to stay operational.
• Example: Zeem Solutions operates a depot in Los Angeles with 78 DC fast-charging ports, supporting rapid turnaround for medium-duty vehicles between shifts.

Understanding when to use each type of charging ensures vehicles stay ready while keeping costs under control.

Critical EV fleet management software features for medium-duty fleets

Medium-duty fleets require advanced tools to handle the complexities of EV management, from charging logistics to route optimization. Here are the must-have features:

1. Track real-time battery levels to prevent delays

Monitor vehicle range and charging status in real-time to avoid disruptions. Medium-duty fleets typically leverage real-time tracking in three ways:

• Prevent mid-route battery depletion: Monitor vehicles while they’re on the road to ensure they have sufficient range for current routes. For example, delivery fleets like DHL employ telematics and analytics software to optimize routes and enhance vehicle efficiency

• Ensure successful charging: Confirm vehicles are charging properly during scheduled charging periods to prevent delays. For example, Amazon uses dashboards to verify charging progress overnight, ensuring its vans are fully charged by the morning shift.

• Proactively address range for next route: Use tracking to confirm vehicles have enough range to complete their next assignment. For example, fleets operated by FedEx plan routes for their electric delivery vans based on remaining charge and availability of nearby chargers.

Why it matters: Real-time visibility into charging and range prevents service disruptions, avoids stranded vehicles, and ensures smooth fleet operations.

2. Optimize charger use to avoid costly grid upgrades

Balance energy distribution across multiple chargers to prevent exceeding site power limits. Medium-duty fleets address charger optimization in three key ways:

• Stagger charging schedules: Spread charging times to avoid peak power demands. For example, Rivian manages charging for its delivery fleet by scheduling chargers to activate at staggered intervals, keeping power usage within limits.

• Prioritize critical vehicles: Allocate power to the vehicles that need it most during high-demand periods. For example, XPO Logistics ensures high-priority vehicles are charged first when energy capacity is constrained.

• Expand chargers without upgrades: Use load management tools to add chargers without triggering costly grid infrastructure updates. For example, Tennessee Valley Authority (TVA) integrates load management in its medium-duty service fleet by coordinating charging with local power companies, ensuring EVs charge off-peak to reduce grid strain.

Why it matters: Charger optimization minimizes infrastructure costs, avoids delays, and supports fleet expansion.

3. Plan routes that align with vehicle range and payload

Design routes that balance range, payload, and charging requirements to maximize efficiency. Medium-duty fleets typically use one of three approaches:

• Overnight charging and single-run routes: Vehicles are fully charged overnight and operate on routes that fit within their range. For example, delivery fleets like FedEx optimize their daily loops to avoid the need for mid-route charging, ensuring reliable performance with low-cost overnight energy.

• Mid-day charging for multi-run routes: Fleets plan for a mid-day fast charge to support longer routes or additional runs. For example, utility service fleets, such as those operated by Southern California Edison, schedule fast-charging breaks during shifts to extend vehicle range for maintenance and repair tasks.

• Frequent top-up charging throughout the day: Vehicles charge opportunistically during short downtimes, like loading or unloading. While less common for medium-duty fleets, this approach might be adopted as fast-charging technology advances. For example, New York City’s municipal fleet has installed DC fast chargers at various locations, allowing vehicles to top up during short stops, enhancing operational flexibility.

Why it matters: Tailoring routes to vehicle range and incorporating the right charging strategy helps reduce downtime, maintain operational efficiency, and control costs.

4. Track energy use and costs to prove ROI‍

‍Monitor energy consumption and costs in real-time to improve efficiency and measure ROI. Fleets use energy tracking for several key purposes:

• Assess cost per mile: Analyze energy costs versus distance traveled to identify cost-saving opportunities. For example, delivery fleets like IKEA use this data to measure and improve operational efficiency, ensuring electrification aligns with financial goals.

• Support sustainability goals: Track emissions reductions to meet regulatory and ESG targets. For example, Walmart tracks energy use to demonstrate compliance with sustainability commitments, helping achieve carbon reduction goals.

• Evaluate ROI on EV investments: Compare energy costs to savings from fuel reduction and maintenance. For example, LeasePlan, a fleet leasing company, uses energy reporting tools to quantify ROI for clients transitioning to EVs.

Why it matters: Comprehensive energy tracking ensures that fleets can validate the benefits of electrification and adjust strategies for long-term success.

Conclusion

Electrifying medium-duty fleets comes with unique challenges, but the opportunities are undeniable. With the right combination of charging infrastructure, route planning, and fleet management tools, operators can unlock the full potential of electric vehicles.

Companies like Amazon, FedEx, and SCE are already demonstrating how EVs can lower costs, reduce emissions, and ensure reliable fleet operations. Whether transitioning for regulatory compliance or operational benefits, medium-duty fleet managers can take a strategic approach to electrification, ensuring vehicles are always ready for the next job.