“I’ve said for years that every yard truck should be electric. But it’s a process; it takes some time.”
Yard trucks or yard tractors are those heavy-duty vehicles used to move trailers around the fenced-in yards of warehouses and distribution centers (DCs). And according to June data from clean transportation consortium Calstart, the zero-emission versions—which include both battery electric (EV) and hydrogen fuel-cell powered vehicles—have the greatest market share right now: Nearly 3% of yard tractor stock is zero-emission, according to the consortium.
Despite the recent slowdown in spending, the group remains bullish on the zero-emission trucks’ future. “These tractors face relatively few barriers to adoption and are ideal for fleets due to their low-mileage duty cycles, quick return on investment, and controlled operating environment where infrastructure can be more easily installed and managed,” according to the June report.
Essentially, companies can say goodbye to range anxiety and similar concerns associated with EV adoption when it comes to their yard operations. And although barriers exist, the experts say a drive for greener and more efficient freight operations is a strong incentive to investigate alternatives to traditional diesel yard trucks.
A “SLAM DUNK” FOR YARD OPERATIONS
Mathisen and others say yard trucks are the perfect application for EV truck technology, for the reasons cited by the Calstart report but also due to other factors. Yard trucks are low-speed vehicles, so they use less energy compared to other types of EVs, for example. They also perform longer: Mathisen says Orange EV’s yard trucks operate at 98% uptime, compared to the industry standard of 80% uptime for diesel-powered yard trucks. And because the trucks remain in a closed environment, the power source is always close by.
“Daily usage [of yard trucks] is 10 to 15 miles. So generally speaking, it’s a small, manageable setup—and you can charge frequently,” says Matt Yearling, CEO of YMX Logistics, a technology and yard services provider that utilizes Orange EVs with its clients.
Yearling points to another big benefit: the user experience.
“Another thing people don’t often talk about [is that the] driver experience is better,” he says of electric yard trucks, noting that they are cleaner and quieter than their diesel counterparts. “It’s just generally a better experience for all involved.
“[EVs] are a slam dunk for the yard.”
… BUT ROADBLOCKS EXIST
The main barrier to implementing electric yard trucks is their upfront cost: In general, they are about twice as expensive to purchase as diesel trucks, primarily because of the battery technology. Government incentives help make that cost easier to swallow, but many of those incentives have waned due to shifting priorities at both the federal and state levels since the Trump administration took over from the Biden administration earlier this year.
“I think, since the general election, what we see is a change in motivation,” says Yearling. “Some of the regulatory [incentives] in California are being challenged. Some of the incentives from the federal perspective are being lessened. So the regulatory backdrop is challenging—and if you’re justifying [EVs] based on that, it [won’t work]. You should be doing this for reasons beyond that.”
Mathisen agrees.
“It can be a difficult financial equation for some customers. You’ll save money on fuel, maintenance, and reduced downtime, so there is a lower total cost. But people have budgets—and you can’t just buy one [yard truck] if you need two,” he says. “Sentiment about how much we as a country are going to invest in EVs has changed. Where we needed to get to as a company is to make sure that our customers knew this was the best truck—and, even without incentives, was the best economic choice. But incentives are important—and change is hard within a company.”
Given those challenges, Mathisen and Yearling agree that larger customers with bigger budgets are driving the adoption of EV yard trucks these days.
“I see broad commitment from the larger shippers of the world. The bigger companies still embrace electrification—they haven’t wavered in their support for that,” Yearling says, adding that overall adoption in 2025 seems generally flat. “What we see is that it’s the big guys that are driving the demand—and we expect to see that in the years to come.”
GOING GREEN STILL MAKES SENSE
Another potential headwind to EV adoption is an easing of so-called environmental, social, and governance (ESG) oversight, which is also occurring as a result of the administrative transition in Washington. But Yearling and Mathisen say this is less of an issue than the drying up of purchasing incentives—primarily because many companies remain committed to the pursuit of green business practices.
“Regardless of the overarching backdrop of ESG goals that are lessening in strength, it still makes a lot of sense to be deploying EVs in these environments [because companies] still have objectives for emissions reductions and what they are doing as a company to bolster their brand and support their marketing stance,” Yearling explains. “In some of the companies that we talk to, 70% of their [yard] fleet is EVs, and ultimately, they want that to be 100%.
“[Adding electric yard trucks] checks all the boxes associated with doing the right thing for the customer and the environment.”
The Calstart research makes that point as well, noting that although medium- and heavy-duty trucks make up 10% of U.S. vehicle stock, they account for more than 25% of all transportation-related greenhouse gas emissions—making the decarbonization of freight operations an important part of broader clean-air initiatives.
For Mathisen, it comes down to matching the right solution to the application, and reaping the rewards that come with that.
“You’ve got to match your fuel source to what your business need is and make it work,” he says. “Electric is the fuel source that fits best for this application. And it’s good for the environment.”
