Trucking is a $37-billion industry in Canada. The U.S. trucking industry is about ten times the size of Canada’s trucking industry. In 1998, almost half of the industry's registered trucks in Canada were heavy-duty vehicles weighing more than 15 000 kg (33 000 lbs.) in gross vehicle weight (GVW). They were used primarily to transport freight between urban centres across Canada and to transport goods between Canada and the U.S. and Mexico.
The same study showed that forty-one percent of the energy consumed to transport freight in Canada was used by heavy-duty trucks, and the commercial road transportation sector produces 19 percent of the total emissions in Canada. Carbon dioxide (CO2) is the principal greenhouse gas (GHG) that contributes to the global problem of climate change. A fuel-efficient truck fleet lessens negative impacts on the environment, improves a company’s image and, most importantly, boosts a its bottom line. A November 2012 Carbon War Room report found that purchasing new or retrofitting existing trucks with fuel-saving technologies can cut fuel costs by 30 percent and result in savings of up to $167,000 per vehicle over 10 years. The long-term cost benefits of adopting fuel-efficient fleets are clear. But adding up the cost of a new tractor-trailer, top-of-the-line battery, aerodynamic fairings, advanced cruise control and a fuel-efficient transmission brings the price tag to nearly $130,000 per truck — a hefty upfront cost and a tough sell for buyers.
This report also found that employing a full suite of fuel-saving technologies generates annual fuel savings of $26,400 per tractor-trailer. When you consider that the upgrades pay for themselves in fuel savings in just 18 months, this is a powerful incentive to obtain and utilize these technologies.
The Canadian and U.S. governments recognize the importance of energy efficiency and the need for resources and subsidies to make it happen.
Types of Incentives
Incentives are available at federal, regional, provincial and state levels. There are five types of incentives to assist with purchasing fuel-saving upgrades:
Who Qualifies for Financial Incentives
To take advantage of funding opportunities, a company must meet eligibility requirements. Incentive programs commonly stipulate the following:
In Canada the incentive programs are administered by Natural Resources Canada. Here is a link to the incentive programs in each province.
http://oee.nrcan.gc.ca/corporate/1513
To learn more about the incentive programs in each U.S. state, here is a link to a comprehensive summary prepared by Janna Finch (janna@creativeflavor.com) of Software Advice.
(http://www.softwareadvice.com/scm/trucking-dispatch-comparison/#buyers-guide).
It should be noted that in addition to grants and loans, Natural Resources Canada's ecoENERGY Efficiency for Vehicles program aims to reduce energy use and emissions from transportation in Canada by offering fuel efficient driver training, providing energy information to vehicle consumers, and encouraging freight companies to make their operations as energy efficient as possible. To learn more about their FleetSmart (http://fleetsmart.nrcan.gc.ca/index.cfm) and SmartDriver Training programs (http://fleetsmart.nrcan.gc.ca/index.cfm?fuseaction=fleetsmart.smartDriver), click on the links supplied.
SmartWay links Shippers and Carriers to Reduce Greenhouse Gases
The SmartWay Transport Partnership is an innovative partnership between public and private stakeholders with the shared goal of saving fuel and reducing greenhouse gases and air pollution from the freight transportation supply chain. It works by linking shippers with an interest in greening their supply chains with SmartWay-recognized fuel-efficient carriers (truck carriers, multi-modal carriers and logistics companies). Other organizations with an interest in greening the freight transportation supply chain can participate as SmartWay Affiliates or Community Members.Originally launched by the United States Environmental Protection Agency in 2004, SmartWay has been administered in Canada by Natural Resources Canada (NRCan) since 2012. Here is a link to an upcoming SmartWay workshop in Canada.
Clearly, energy efficiency has become and will continue to be a key strategy for both shippers and carriers in the years ahead. Hopefully these tools and resources will add to everyone knowledge base and cause more companies to increase their efforts in this critical component of their business.