Good morning, and welcome to the latest edition of TEG Transport Insights.
Today, 9th September, is World Electric Vehicle Day, and while many will see the day as a gimmick, for 3PLs, EVs are fast becoming a strategic necessity.
Why EVs are becoming increasingly important
In recent years, major cities have introduced and expanded ‘clean air’ zones. EVs sail through such zones with ease. Elsewhere, oil price volatility has returned to the agenda. EVs do not rely on oil to the same degree as their petrol and diesel equivalents, and so offer operators a degree of oil-price protection.
Perhaps the biggest factor driving EVs’ rising significance, however, is customer demand. Today, the customers with the biggest logistics contracts invariably wish to reduce supply chain emissions. In this area, once again, EVs offer clout.
The EV investment conundrum
The conundrum for 3PLs is longstanding: with EV importance rising, how should 3PLs react?
Buying EVs, particularly HGV EVs, is costly. And as adoption increases, many believe HGV EV prices will fall.
EV specs, meanwhile, are advancing. Why invest in pricey kit now that might date very soon?
The collaboration opportunity
One solution to the conundrum is carrier collaboration.
Rather than overhaul an existing fleet, 3PLs can tap into the EV opportunity by partnering with specialist EV carriers. Such partnerships grant 3PLs access to immediate EV capacity while removing the need to invest in EVs upfront.
3PLs get EV capacity. Carriers fill trucks. Customers win.
The question on all of our lips is: Where might a 3PL find specialist EV carriers?
In my opinion, TEG’s logistics collaboration platform is a good place to start.
James Thornton
