Nearly 25% of YMX’s yard tractor fleet is electric-battery operated. (YMX)
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Although proponents of electric terminal tractors say it’s just a matter of time before they’ll fill yards across the country, there are still some challenges ahead.
Battery-electric terminal tractors may come with a hefty upfront price tag, but it is the myths surrounding these zero-emission workhorses that fleet executives say they confront most often when asked to justify the cost.
“Everything a diesel terminal tractor can do, an EV can do equally as well in the vast majority of cases and, in most cases, it actually does better,” said Chris Bennett, vice president of EV, energy and sustainability at yard logistics specialist Lazer Logistics, which operates 2,300 terminal tractors, including more than 125 battery-electric units.
Companies that have deployed electric terminal tractors cited maintenance costs as a key benefit.
Bennett estimated that maintenance and repair costs are about 50% less than traditional diesel-powered models.
Erin Mitchell, chief operating officer at YMX Logistics, agreed that the reduction in maintenance costs associated with electric yard tractors can be eye opening.
YMX has about 80 terminal tractors, with electric vehicles comprising about a quarter of that fleet.
“Everything right now indicates that the EVs will be cheaper from a recurrent expense standpoint,” Mitchell said.
Lazer Logistics operates 2,300 terminal tractors, including more than 125 battery-electric units. (Lazer Logistics)
EV tractors make one of the best initial use cases for fleets exploring electrification, said Mike Roeth, executive director at the North American Council for Freight Efficiency.
Roeth noted he sees a broad market adoption for EV terminal tractors because they are kept at the warehouse or logistics yard, can be charged on breaks and between shifts, and have no problem moving at only about 5 to 10 mph around the yard.
In contrast, he said, low speeds and low-temperature operations aren’t as suitable for diesel terminal tractors, which can result in high maintenance costs and significant downtime.
Despite some limitations and negative perceptions surrounding EVs, Roeth said this emerging segment of the commercial vehicle market continues to grow as more fleets realize their benefits.
“All diesel yard truck manufacturers either have an electric vehicle option or are working on it,” he said.
According to CalStart, the total U.S. stock of yard tractors is 62,000, with zero-emission yard tractors accounting for about 2.8% of that total.
All heavy-duty zero-emission truck segments saw an increase in deployments between 2023 and 2024, with yard tractors rising 30%, the nonprofit clean transportation trade group said in its June 2025 report. However, the adoption and deployment rates of zero-emission yard tractors may be underreported because many yard tractors are not registered for on-road use, according to the report.
Adoption Factors
One main driver of adoption is the increasing availability of these vehicles through major equipment leasing companies such as Penske and Ryder, said Andy Manos, director of fleet solutions at Prologis Mobility.
Also helping, he said, are state incentive programs such as California’s Clean Off-Road Equipment Voucher Incentive Project aimed at offsetting acquisition costs, as well as regulatory pressures such as state-led indirect source rules aimed at reducing emissions at warehouses.
Driver satisfaction is another reason some fleet owners are seriously looking at this market, NACFE’s Roeth said, explaining that the driver turnover rate for yard tractors is typically about 50%, but that figure drops to just under 10% for fleets with EV yard tractors.
YMX Logistics employs about 300 drivers. Mitchell said drivers find that EVs are quieter, cooler and without the smell of diesel exhaust.
“This means that in hot regions like Arizona, drivers are not sitting on giant diesel engines that are putting off heat, so they’re much more comfortable,” she said, adding that the air quality impact is also important.
During the past decade, manufacturer Kalmar Ottawa has seen a higher take rate for EV terminal tractors, said Ryan Sipple, a product manager at the company. Kalmar Ottawa expects EVs to account for at least 10% of total sales volume next year.
Electric yard tractors are a good first step into the EV world for those that are hesitant because the return on investment makes sense over the life of the vehicle, Sipple said.
“The upfront cost is absolutely higher, but if you look at the life cycle of the truck 5 to 7 years down the road, the total cost of ownership starts to balance out with diesel,” he said, adding that electric prices are somewhat easier to predict than diesel.
Zack Ruderman, vice president of sales and marketing at manufacturer Orange EV, said fleets can begin to realize significant cost savings in as little as 2 to 3 years. Fleets can save as much as $500,000 per truck over 10 years, he said.
Tradeoffs and Challenges
Challenges and limitations remain, however.
Matt Godfrey, president of ABF Freight, said EV tractors work well in the distribution center environment — where the less-than-truckload carrier primarily uses them — and are the same or better than traditional diesel units. However, they still carry higher acquisition and operational costs, he said.
“[This] makes diesel currently more practical across the network, although higher utilization locations such as distribution centers do offer more opportunity for improved cost-to-operate and better ROI,” Godfrey explained.
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Godfrey said ABF plans to continue developing its electric terminal tractor fleet due to driver comfort benefits, attractive energy costs and potential for long-term maintenance cost improvement.
YMX’s Mitchell said she does not see much downside to using these tractors, but one lesson learned has been that they can struggle with overweight container loads.
“Occasionally we do have that kind of issue, but it’s very rare and usually we have a diesel on hand that can handle that work for us,” Mitchell said.
Lazer Logistics’ Bennett said workforce development for EV tractors needs improvement.
“[It] is woefully behind where we need to be. Today, you can throw a stone and pretty much hit a diesel mechanic on just about every corner,” he said. “We need to get to a point where we have more EV technicians and a greater focus on serviceability of units.”
A charging station at Denker EV in Torrance, Calif. Manos at Prologis says the vehicles are increasingly available for lease. (Prologis Mobility)
EV charging infrastructure can also be an issue for some fleets, NACFE’s Roeth said. For large retailers with private fleets, long-term investment in EV charging is not a problem because they own the yards, warehouses and trucks.
“If they decide to electrify their yard tractors, it’s more direct and easier for them,” Roeth said.
But the lion’s share of U.S. warehouses is owned by real estate firms, which lease them to companies that sometimes sign only short-term contracts, Roeth explained. The lease holder needs to be confident that it can secure longer-term leases or that it can find another company to use the chargers when the first company’s contract ends.
On the technology side, there are some niche cases where EV yard tractors may not be a great fit, such as those where the road surface grade is extremely high, Bennett said.
“These tractors can achieve 10% and 15% grades or more, but in extreme applications where maybe you’re at a 25% grade, for example, diesel tends to still be a better fit,” he noted.
Shifting Policies
Meanwhile, the Trump administration’s ongoing rollback of emission regulations and policies that favor zero-emission vehicles have created uncertainty for EV adoption. Fluctuating tariffs also have contributed to this lack of clarity.
YMX’s Mitchell said there may be ongoing challenges if federal and state government subsidies, which helped to remove some of the cost burden associated with EVs, go away.
At present, “a lot of those are getting canceled or put on pause or limited in their funding, and that’s going to continue to make this challenging,” along with tariffs, especially on batteries, she said.
Roeth said he understands that some remain skeptical about the benefits of battery-electric vehicles and that there is a lot of uncertainty regarding what will happen next.
“A lot of people are saying battery-electric cars as well as trucks are fools’ gold and so forth,” Roeth said. “But we’re on a different page now because truck drivers like them, prices are coming down and the maintenance savings is significant.”
