Daimler Truck North America and Daimler Truck Financial Services Collaborate with Salem Carriers and Electrada for a New Logistics Electrification Solution
June 27, 2024
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Portland
OR
United States
June 25, 2024 — Daimler Truck North America LLC (DTNA) and Salem Carriers, Inc., a dedicated contract logistics company, today announced their collaboration to electrify DTNA’s inbound logistics operations at the Salem Carriers hub near Charlotte, North Carolina. This initiative is the latest effort in DTNA’s journey to electrify its logistics operations, building on previous integrations in the Pacific Northwest and Mexico.
Daimler Truck Financial Services (DTFS) is involved in the project, partnering with Electrada, a fleet electrification solutions company headquartered in Cincinnati, Ohio. Together, they provide an all-in-one Charging-as-a-Service (CaaS) solution with a fixed and predictable monthly rate. This solution covers the development, operation, and maintenance of the charging infrastructure as well as the energy contract. This ambitious initiative underscores a shared commitment to fostering sustainable transportation.
Salem Carriers, which services DTNA’s inbound logistics network in the Carolinas, plays a crucial role in connecting manufacturing sites, supply chain hubs, and supplier locations. They deployed DTNA’s Freightliner eCascadia vehicles for daily inbound logistics routes. These operations are made possible through the strategic partnership with Electrada and DTFS to provide a full-scale depot electrification effort, aligned with DTNA’s goal to implement electric mobility solutions throughout its operations.
The CaaS solution for Salem includes deployment, ownership, operation, and energy management of the fleet charging infrastructure at Salem’s Statesville, North Carolina depot, complemented by en-route top-off charging at the unique Duke Energy/Electrada mobility microgrid in Mt. Holly, North Carolina. DTFS serves as the catalyst by reducing entry barriers with the new CaaS solution; integrating the vehicle lease, electric service program, insurance, and other key components into a unified, predictable cost structure for Salem.
Highlights of the initiative include:
- Continued Electrification of Inbound Logistics: Building on previous DTNA initiatives in the Pacific Northwest and Mexico, the collaboration with Salem facilitates the integration of zero-emission vehicles (ZEVs) into DTNA's supply chain, reinforcing the company's sustainability pledge. This mirrors Daimler Truck’s successful sustainable transportation initiative in Germany in 2023.
- First CaaS Project Deployment for DTFS with Electrada: The partnership with Electrada marks a significant milestone as DTFS’s inaugural implementation of CaaS, establishing a model for future electrification efforts.
- Shift Towards Service-Level Agreement backed CaaS Solutions for Depot Electrification: A performance-backed CaaS model for depot electrification is recognized as the most reliable approach for critical transport operations.
- Custom Electric Service Program: A tailored electric service program caters to specific operational needs and duty cycles for Salem’s DTNA operations, ensuring energy cost stability throughout the partnership.
- Integration with Duke Energy Microgrid: Located adjacent to DTNA’s eastern U.S. manufacturing facility, the Duke Energy/Electrada mobility microgrid will provide Salem with reliability-guaranteed electric fuel. This microgrid is supported by the nation’s first and most flexible utility-partnered setup, featuring solar generation, stationary energy storage capacity and best-in-class energy management applications.
By collaborating to create a robust charging infrastructure, we pave the way toward a cleaner, and more sustainable future, addressing the challenges that come with the transition to ZEVs. Electrification initiatives, like this one, provide direct support helping to build confidence and scale.
Jeff Allen, Senior VP of Operations and Specialty Vehicles at Daimler Truck North America, highlights the example this project sets for the logistics industry: “This program with DTFS, Salem, and Electrada reinforces DTNA’s commitment to decarbonization throughout the supply chain by seamlessly using Daimler vehicle and energy solutions available to all logistics enterprises today. Electrifying our inbound logistics operations is a clear testament to the reliability of DTNA’s electric Freightliner trucks, combined with high-performance charging infrastructure and rigorous energy management. There’s no better validation point to the market than being the customer of your own solution.”
Stephan Unger, CEO Daimler Truck Financial Services, emphasizes the importance of services for the ZEV transformation: “By addressing the charging infrastructure, we are able to better support zero-emission truck goals and ultimately unlock larger environmental and social-economic benefits. This project is an important step in the DTFS transformation, from pure financial services to a complete service provider for the commercial vehicle industry.”
Dennis Giff, General Manager at Salem Carriers: “Introducing battery electric vehicles to our operations was a new initiative. The DTFS/Electrada approach was unified, aligned with our operating needs, and set the stage to scale future electric vehicle integration into our services.”
Kevin Kushman, CEO of Electrada: “Only through the comprehensive bundling of services are logistics companies, like Salem, able to eliminate the capital, technology, and energy price volatility risks of launching a zero-emissions fleet. We’re proud to team with Daimler Truck Financial Services and Daimler Truck North America to demonstrate how to meet the reliability and TCO requirements of a critical logistics function with our zero-emissions CaaS solution.”
In line with its sustainability goals, DTNA aims to achieve carbon neutrality for all new products and services from direct suppliers in Europe, the United States, and Japan by 2039. As early as 2020, the Portland Truck Manufacturing Plant, where the Freightliner eCascadia and eM2 are built, achieved CO₂-neutral production by reducing energy consumption and offsetting on-site emissions. DTNA plans to achieve CO₂-neutral production at all remaining truck manufacturing plants by 2025. Recognizing the growing importance of product manufacturing emissions within the electric product lifecycle, DTNA is implementing sustainable supply chain measures and views suppliers as partners in its sustainability journey. In addition, DTNA is proactively developing solutions to optimize the entire lifecycle of the batteries used in its electric trucks. This includes strategies such as repairing, remanufacturing, repurposing, and end-of-life recycling.
For more information, please visit:
Daimler Truck Financial Services
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About Daimler Truck North America
Daimler Truck North America LLC, headquartered in Portland, Oregon, is a leading provider of comprehensive products, services and technologies for the commercial transportation industry. Daimler Truck North America designs, engineers, manufactures and markets medium- and heavy-duty trucks, school buses, vehicle chassis and their associated technologies and components under the Freightliner, Western Star, Thomas Built Buses, Freightliner Custom Chassis Corp and Detroit brands. Daimler Truck North America is a subsidiary of Daimler Truck Holding AG (DTG), one of the world’s leading commercial vehicle manufacturers.
About Daimler Truck Financial Services
Daimler Truck Financial Services is one of the world’s largest captive financial services providers in the commercial vehicle sector. As part of the Daimler Truck Group, it supports the Group’s truck and bus brands with tailored financial services, which include leasing, financing, insurance, and rental solutions. The clear objective of Daimler Truck Financial Services is to build and maintain the loyalty of the Group’s customer base as well as contributing to the Group’s financial success. Daimler Truck Financial Services has around 1,900 employees and is active in 17 markets worldwide.
About Electrada
Electrada is a Cincinnati-based developer, owner, and operator of electric vehicle infrastructure and related energy assets, serving multiple transportation segments with its unique 360 Charging-as-a-Service solution. Electrada partners with fleets to expertly design and build a fully tailored EV charging solution, then invests all the capital required to deliver a complete electric fuel program for a decade or longer at an electric-fueled cost per mile that's lower than liquid fuel from day one. Fleets only pay for the electric fuel they use – with no disruption to their operations. Electrada, founded in 2020 by energy, mobility, and utility experts, is a BlackRock Climate Infrastructure portfolio company established to build and support high-performance EV infrastructure across North America.
About Salem Carriers
Salem Carriers, Inc., since 1982, is a leading provider of dedicated contract services throughout the southeast and Texas. Salem Carriers, Inc. in conjunction with Salem Leasing Corporation, a leading provider of full-service truck leasing and vehicle maintenance services since 1965, provides customized solutions to allow each customer to meet its specific operational, equipment and transportation needs. Salem Carriers, Inc. has been a partner with DTNA for over 24 years and is proud to collaborate with DTNA to expand the use of electric vehicles.
