Tuesday, June 12, 2012

The EPA May Have Got it Right

For the last 4 - 6 years we have heard many people grumbling about the need to clean up diesel trucks from an environmental  perspective.  All the same arguments heard whenever new goals are set were rolled out:  "It will cost a fortune", "It will never work", "The technology doesn't exist"... etc. etc.  Same comments made by the automotive companies when the initial clean air act was passed and now we hear them again when it comes to Natural Gas. Now, in an article entitled, The Emissions Dividend in Fleet Owner Magazine, we find out the EPA may have been right.  Thank goodness they stuck to their guns.

What is even more fascinating about the data in the article is it seems to suggest now that all these changes may actually end up in reduced costs for the carriers.  Engines are lasting a million miles, drain intervals are being extended  and other operating costs are improving.  Yes, the acquisition costs of the engines may be higher but it appears there is evidence the total cost of ownership (Generally figured by adding: Acquisition costs+ownership cost-residual revenue) may actually be lower.  It is certainly improving and this is verified by a presentation I was at where a very large trucking company confirmed this phenomenon.

As a shipper it has to make you wonder what all this talk is of "increased costs"?  Yes, there are increased acquisition costs but it is TCO I am concerned about.  If TCO is decreasing that is a good thing isn't it.

This reinforces why, as a shipper, you have to understand the costing model of transportation as well or better than anyone in the industry.

Could you imagine what LA would be like from a smog perspective if the EPA had not stuck to its guns all these years?  It would have been a disaster.  Now, it looks like the same success is coming to the actions concerning diesel trucking.  Congratulations EPA... and my future grandchildren thank you.

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