The future of the van logistics market

Without much fanfare over the years, the cargo van market has existed as the mobile toolkit of tradesmen, on construction sites and for vocational contractors making home repairs. But this vehicle type is now becoming increasingly popular in another line of work.

The massive proliferation of e-commerce has made final-mile delivery vans operated by carriers such as FedEx, DHL and Amazon a common sight everywhere.

As a result, van manufacturers are working to meet the demands of this growing e-commerce delivery business. They also see these vans as the perfect incubator for the transportation industry’s move toward electric-powered vehicles.

“We are seeing a significant uptake in EV cargo vans,” said James Martin, an industry analyst at IHS Markit. “Expect the majority of the EV increase from the cargo van side. Moderate to large fleets can control their recharging to make EVs more effective.”

Martin added that last-mile deliveries in e-commerce do not need electric batteries in the 300-mile range and can easily utilize 100- to 200-mile range battery packs, which reduces the cost of deploying EVs in delivery fleets. Manufacturers have ambitious plans to introduce battery-electric vans.

Ford Motor Co., for instance, said it plans to invest $30 billion in electric vehicles by 2025.

“We have a registration system in place to collect purchase intent and interest,” said Drew Walker, Ford’s commercial van brand manager. “We are taking orders on the fleet side now, and later will open the system to consumers.”

Walker said the E-Transit will have three different roof heights and three different lengths to ensure vehicle choices are flexible and versatile for any customer application.

However, traditional cargo van manufacturers are not the only players in the emerging market for EV cargo vans.

EV startup Rivian has significant financial backing and a monster contract from online retail giant Amazon.com to produce 100,000 electric delivery vans by 2030.

IHS Markit forecasts that by 2028, more than 25% of the light commercial van market will be electric vehicles, including 11.5% of vans built by established OEMs and 100% produced by all-electric new entrants such as Rivian.

Innovations in Safety, Efficiency

As major cargo van manufacturers point to their products’ versatility and flexibility to fit any application, Dave Sowers, head of commercial marketing at Ram, singled out innovations in safety.

“Safety features continue to lead the way, allowing for a reduction in cost of ownership and downtime,” Sowers said. He noted that Ram’s ProMaster offers safety features such as forward-collision warning and mitigation, blind spot monitoring and a digital rearview mirror.

Sowers also said vans have become much more functional for contractors because higher roof options add to the vehicle’s interior workspace.

“The ProMaster’s 12-foot cargo van is most popular for vocational and mobile shelving units, while the 13½-foot cargo van is most popular for final-mile delivery shelving,” he said. “This results in a purpose-built, highly customizable van designed to exceed the demands of commercial customers and upfitters.”

For example, upfitter EZ Stak earlier this year introduced a two-shelf folding unit in 20 different sizes that is compatible with the medium- and high-roof ProMaster and Ford Transit models.

“We looked at vans from local delivery companies in order to understand the equipment inside the van and the safety needs of the drivers,” said Calvin Lawrenson, EZ Stak’s business development coordinator.

The Ford Transit’s most popular option is the medium-height roof with the long wheelbase, but the primary focus is on the drivers.

“We tailor ergonomics for drivers, especially in the last-mile delivery vans,” Walker said. “We’ve converted the manual parking brake to an electronic brake to clear the space between the front seats to make it easier for the driver to have access to the packages on the shelves. We also have interior lighting for the last-mile delivery vehicles.”

The Ford Transit now offers full-time, all-wheel drive that is easier to operate for drivers who are new to the vehicle. It does not change the step-in height, Walker added.

Keeping Pace With Demand

Last year, the COVID-19 pandemic led to a spike in e-commerce consumer shopping. At the same time, van manufacturers faced the balancing act of keeping their employees and suppliers safe while continuing to produce the vehicles needed by their customers.

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Author: Jack Ferry

Source: https://www.ttnews.com/articles/cargo-van-manufacturers-take-advantage-last-mile-delivery-industry-grows