Electric vehicle delivery fleets
Growth in city populations and e‑commerce is contributing to emissions from urban freight. Recent improvements in battery, load and mileage capacity have made electric vehicles (EVs) a competitive alternative to internal combustion engine (ICE) vehicles that can help address such challenges. The number and frequency of parcel deliveries have been increasing in cities, while the size of shipments is decreasing, creating the need for smaller vehicles delivering to more destinations. EVs can be a useful option to respond to this need while also greatly lowering CO2 emissions. They perform well in the stop-and-go traffic conditions that lead to extraneous pollution from fossil-fuelled light-duty vehicles (LDV). A battery electric (BEV) van (2 tonnes to 2.5 tonnes) is more than three times more efficient than an equivalent diesel van, as EVs have regenerative braking. Smaller electric delivery vehicles would still be more efficient than diesel equivalents, although the difference would be less as the regenerative braking has less of a comparative difference. The economic case for electric delivery vehicles is also strengthened by the high utilisation rates of delivery vehicles, as higher capital costs are offset by lower operational costs.
The reduced noise pollution from EVs makes them a better option for night deliveries. EVs tend to have a more acute turning range and better visibility, which is particularly valuable for urban freight vehicles. In terms of trip patterns and travel distances, EVs correspond well to the logistics and freight transport needs in urban areas.
The use of EV fleets in urban settings is an outcome of selected of policy measures, rather than a specific measure. However, the decision to change whole fleets rests with fewer decision makers than relying on the turnover of the private fleet, for example. The increased use of EVs can be encouraged through a range of policy measures, including access restrictions and charges for more polluting vehicles, roll-out of charging stations for EVs, and differentiation of taxation based on emissions.
A study on cities in France estimated that replacing freight shipments using diesel vehicles with EVs (with 6‑tonne payload) would reduce CO2 emissions by 60% in urban areas of over 100 000 inhabitants.
Using electric LDVs instead of fossil-fuelled LDVs for parcel deliveries in Rio de Janeiro, Brazil, was estimated to reduce CO2 emissions by 25%.
A study on deliveries from a suburban London depot to London showed a 54% reduction in CO2 emissions per parcel when diesel vehicles were replaced by a micro‑consolidation centre and electric vehicles and three-wheelers.
EVs require a larger investment to start, since they cost more than fossil-fuelled vehicles. However, costs are usually compensated over the longer term due to the price difference for fuel and maintenance.
In European cities, it has been estimated that the cost of using electricity to power a freight fleet can be up to 80% less expensive than using diesel.
The cost of the last mile of postal deliveries for a company in Rio de Janeiro, Brazil, was estimated to increase by 6% when electric LDVs were used instead of fossil-fuelled vehicles. The difference is mainly due to the higher cost of purchasing EVs. The use of electric three-wheelers instead of fossil-fuelled vehicles reduced costs by 28%.
A study on deliveries from a suburban London depot to London showed no change in operating costs when diesel vehicles were replaced by a micro‑consolidation centre and electric vehicles and three-wheelers.
A cost-benefit assessment of a pilot project in Korea that electrified postal delivery vehicles showed that the benefits of the use of EVs exceed costs by 243%. Drivers were more efficient when using EVs, taking 6% less time for their deliveries than with motorcycles. Vehicle-kilometres driven were also 20% less per delivery equivalent (a unit value that takes into account differences between delivery types) during the EV trial. Fewer return trips to the post office for EVs account for most of this, as the EVs had a higher load capacity compared with the motorcycles. Vehicle purchasing and operating costs showed to be 36% higher for EVs, per delivery equivalent. However, savings in time and distance translate to energy savings of 68%, and a reduction in staff costs of 5%. In absolute terms, staff cost savings provide the largest absolute benefit of the categories considered, followed by energy cost savings. Overall, the assessment made a strong economic case for the electrification of urban delivery vehicles.
Replacing fossil-fuelled vehicles by EVs in cities will reduce noise and air pollution.
Replacing fossil-fuelled vehicles by “like-for-like” EVs in cities can reduce road space and kerbside loading spaces, since EVs do not have the same capacity in terms of weight and volume and tend to make shorter trips with smaller loads. For that reason, using EVs for freight may increase congestion in some cases, depending on the vehicle types that are used.
A study of French cities estimated that replacing diesel vehicles by 3.5‑tonne EVs (2‑tonne payload, assumed consumption of 0.55 kilowatt-hours per kilometre [kWh/km]) for freight movements would increase vehicle-kilometres by 9%. However, if 10‑tonne EVs (6‑tonne payload, assumed consumption 0.76 kWh/km) are used, then vehicle-kilometres would decrease by 31%.
Selecting the right type of EV for the type of deliveries that are being undertaken is key to achieving greater economic efficiency with a transition to EVs.
ITF (2021) Transport Climate Action Directory – Electric vehicle delivery fleets
https://www.itf-oecd.org/policy/electric-vehicle-delivery-fleets
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