Electric Vehicles: Many Manufacturers Charge Ahead While Others Have a Hybrid View

May 17, 2024

Blog Post CTA

Whether electric trucks are the future will depend greatly on who you ask. EV manufacturers will, no doubt, insist that such vehicles are the future and even the present. Hybrid or hydrogen-fuel-cell OEMs might have a different answer that benefits their own interests. Manufacturers of combustion parts or other stakeholders in the logistics industry will likely have yet another answer to the question.

In this blog, we look at how electric trucks are progressing, along with other headlines to stay current on supply chain and logistics industry news.

Volkswagen Bets on Hybrids

Volkswagen has been seeing a slowdown in demand for fully electric vehicles, leading the auto manufacturer to revisit and pivot its strategy toward plug-in hybrid cards.

According to Transport Topics, Volkswagen’s CEO said the company’s priority is to expand its portfolio of models with batteries and engines because customers want plug-in hybrids.

It’s a deviation from its prior strategy when the company focused mostly on fully electric vehicles. In fact, VW had plans to build a $2.2 billion EV factory in Germany but scrapped the build last year.

Other OEMs have seen a similar decline in EV interest. Toyota, for one, is reaping the benefits of a global surge in hybrid vehicle demand. Meanwhile, Mercedes-Benz said it plans to sell combustion-engine cars for longer than initially planned because of disappointing EV sales.

Some of Volkswagen’s hybrid tech has an electric range of more than 62 miles. The next step, per the CEO: figure out how to go further and make the vehicles even more cost effective.

Daimler Touts New EV Prototype

As Volkswagen doubles down on its hybrid strategy, Daimler Truck is full speed ahead on electric trucks with its latest prototype.

The company rolled out an autonomous, battery-electric Freightliner eCascadia prototype this month, Trucking Dive reported. Daimler is heralding the vehicle and the technologies it uses as “a glimpse into the future.”

The truck uses a Level 4 autonomous sensor suite from Torc Robotics (a subsidiary of Daimler) for the autonomous portion. The zero-emissions part is being trialed with battery electric but could also be powered by hydrogen in the future, Daimler said.

Torc has already been piloting its autonomous system on diesel trucks, preparing for a market launch in 2027. Applying the autonomous system to EVs is the next step. As Joanna Buttler, head of Daimler Truck’s global autonomous technology group, said, “We always look further into the future.”

Is Renewable Diesel the Answer?

A recent report isn’t so sure about electric vehicles. Rather, the American Transportation Research Institute found that renewable diesel is a viable way to cut down on carbon emissions while having a minimal impact on trucking operations.

In fact, renewable diesel “looked a lot better” than battery electric when assessing the full lifecycle emissions, Overdrive reported. The lifecycle emissions for battery EVs include the mining of minerals for batteries and the eventual disposal of the trucks and batteries. Emissions over the lifecycle of an EV are 30% lower compared to an internal combustion truck using diesel, while renewable diesel cuts emissions by 67.3%, the institute found.

From an operations standpoint, renewable diesel doesn’t require any changes to equipment or engines, which is yet another bonus for carriers.

Firmly in a Freight Recession

While OEMs keep moving along with innovations in emissions-cutting vehicles, the trucking market has yet to move out of a freight recession, according to a recent article in FreightWaves.

The article cites The Logistics Managers’ Index, in which a number above 50 indicates expansion and a reading below 50 means contraction. Transportation prices clocked in at 44.1 in April, down nearly nine percentage points from March.

“We are still firmly in a state of freight recession,” the LMI report said, per FreightWaves.

Part of the reason is the excess capacity in the trucking market. The transportation capacity index registered at 61.4. The process of that capacity exiting has been slow, which leads to lower freight rates. In fact, some rates have fallen below operating costs for certain fleets.

Trucking Transitions to Growth

FreightWaves’ report on the LMI dovetails with Heavy Duty Trucking’s article based on FTR data, which noted that trucking’s overcapacity is keeping freight rates low.

Several small carriers entered the market during the early days of the pandemic. While the carrier base declined starting in 2022, there are still 92,000 more trucking firms with operating authority compared to 2020, creating a plethora of capacity in the market.

But the outlook is more optimistic for trucking rates. FTR expects year-over-year growth starting in the third quarter. It won’t be “terribly robust,” said Avery Vise, FTR's vice president of trucking, but it will likely be growth. Vise expects a stronger trucking market in 2025.

Recovery Efforts at Key Bridge

Meanwhile, at the Francis Scott Key Bridge in Baltimore, the body of the sixth and final person who died in the tragic bridge collapse has been recovered, FreightWaves reported.

Crews recovered the body of José Mynor López more than a month after the bridge collapsed. López was 37 years old and was one of the construction workers on the bridge at the time the container ship crashed into the bridge, causing its collapse.

Next, crews will conduct what’s known as a controlled demolition to break up the bridge. That frees the container ship and returns marine traffic to normal at the Port of Baltimore.

Adapting to the Port Closure

Several businesses surrounding the Port of Baltimore have had to adjust their operations in the wake of the bridge collapse. One company is Baltimore International Warehousing and Transportation.

According to an article in Marketplace, the bridge collapse disrupted the company’s operations to the point where it had to lay off most of its truck drivers.

A worker retention grant a few weeks later allowed the company to bring back its drivers, but the hours and routes were longer. Instead of the Port of Baltimore, the firm is bringing in cargo from the Ports of Norfolk, Philadelphia, and New York.

Even as Baltimore’s port reopens, Baltimore International Warehousing and Transportation’s CEO expects it will take some time for vessels to return, because many carriers weren’t booking cargo until the channel reopened.

Moving Freight, EV or Not

Whether electric, hybrid, combustion or something else, freight needs to move from one destination to the next in a timely manner. Entourage Freight Solutions can help shippers secure the capacity they need as they navigate the trucking market. EFS provides steady services that can help you navigate an ever-changing logistics environment and receive important information in real time.

Entourage Freight Solutions offers the following services, and many more:

Our LTL service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world.
Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed.
Our Refrigerated transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition.

Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.

< Older Post

Newer Post >

Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.