Truck Stops Begin Stocking DEF for 2010 Trucks, but Many Wait to Invest in Bulk Dispensers
By Mindy Long, Special to Transport Topics
This story appears in the Jan. 25 print edition of Transport Topics.
As the first 2010 trucks requiring diesel exhaust fluid begin to roll off production lines, executives with the nation’s truck stops said they are prepared to meet the demand.
The shelves at the largest chains and some independent operators are now stocked with packaged containers of DEF, and many are drafting plans to install bulk dispensers, the most economical and convenient method of distribution.
“All the people in the truck-stop business want to serve their customers, and if the customers want DEF, then we’re going to have DEF,” said Terry Ross, vice president of construction and environmental services for Love’s Travel Stops & Country Stores, Oklahoma City.
About 3,000 dealerships, distributors and truck stops already have some form of DEF available. All 2010 trucks — other than those produced by Navistar Inc. — will apply selective catalytic reduction technology to meet federal engine emissions standards. These trucks require DEF to run properly.
“The number of locations has grown over the past month and will just continue to increase,” Kim Doran, spokeswoman for the North American SCR Stakeholder Group told Transport Topics this month.
Truck-stop operators said they expect it will take several months before customers are purchasing DEF in any significant quantity. The recession, which has depressed freight levels, has given truck stops more time to meet truckers’ DEF needs and has caused some to hold off on offering bulk distribution.
“It is exacerbating the problem of getting a roll out because there aren’t as many vehicles out there that need it,” said Patrick Kelly, policy adviser for the American Petroleum Institute. “That has a big impact on that introduction period.”
In September, Integer Research, London, released a revised DEF demand forecast that indicated weak truck sales would result in consumption about 45% below estimates published by the Engine Manufacturers Association in August 2008. Integer estimated Classes 4-8 trucks and buses will require 21.6 million gallons in 2010, with demand reaching 800.6 million gallons in 2019.
EMA originally forecast 54.6 million gallons for 2010 and 1.34 billion gallons by 2019.
Love’s now has containers of DEF at each of its 140 locations and intends to install bulk containers as demand increases.
“We have a plan in place, but the timing of that plan keeps getting rearranged due to the lack of sales of Class 8 trucks,” Ross said.
For new locations under construction, Love’s is laying pipe and conduit for underground storage.
“We’re adding about 25 locations a year,” Ross said. “Those will be ready to go for whenever we decide to put the dispensers out there.”
Pilot Travel Centers LLC, Knoxville, Tenn., was the first national chain to install bulk DEF dispensers, with 25 in place so far. Pilot plans to add another 25 each quarter until 100 locations have the dispensers, said Bill Mulligan, Pilot’s vice president of development, facilities and environment.
Pilot said it is investing $5 million on the initial rollout and will add bulk distribution to more locations and more islands as demand grows. It operates more than 350 locations and is strategically placing dispensers coast to coast.
Petro and TravelCenters of America locations have DEF available in packaged containers at all locations and through 400 RoadSquad trucks. The chain plans to initially roll out bulk containers in its shops, which can be done in a matter of weeks when demand increases.
Jodi Crawford, business development manager of DEF distributor Airgas Specialty Products, Lawrenceville, Ga., told TT it makes sense for locations to offer DEF in a shop first.
“In a service center, they can sell it the same way they sell oil. There is less integration and less hard piping to deal with,” she said.
TA has identified the first 50 and next 50 locations that will receive on-island distribution when demand reaches that level, said company spokesman Tom Liutkus.
Fleets have made it clear that they want to see DEF at the fuel pump. “We’re going to continue to put heat on them to build the infrastructure that will allow us to get there,” said Corey England, executive vice president of operations support for C.R. England Inc., Salt Lake City. C.R. England purchases about 90% of its fuel at truck stops and plans to buy 200 to 400 trucks during 2010.
“If it is off-island, and a driver is going to fuel his truck and then fuel his DEF tank,” England said, “he could incur another line and another delay. That isn’t good for your driver satisfaction.”
Similarly, “you couldn’t say this single thing will determine which truck stop you do business with,” said Steve Duley, vice president of purchasing for Schneider National Inc., “but if we have a choice we will go with the one that has the bulk DEF available.”
Schneider, Green Bay, Wis., expects to buy 60% to 70% of its DEF from truck stops and will take delivery of 40 trucks with 2010 engines in the first quarter.
“If they don’t have any significant problems, we hope to buy 500 to 1,000 trucks by the end of the year,” Duley added.
Although independent truck-stop operators often have less capital to invest, they recognize the need for bulk distribution.
Ed Flynn, owner of Flynn’s Truck Plaza in Shrewsbury, Mass., and former chairman of the independent operators’ council for Natso, said he plans to offer DEF on the shelf and probably will offer DEF at the pump in the next year.
“We’ll wait for the demand, but we do plan to do both to stay competitive,” he said.
To encourage the adoption of bulk distribution, Terra Environmental Technologies Inc., Sioux City, Iowa, is offering equipment incentives and financing to truck stops, said President Barry Lonsdale.
Under its TerraCair brand, Terra has 2.5-gallon containers, 55-gallon drums, 330-gallon totes and bulk containers potentially up to about 2,000 gallons.
When trying to predict demand and gauge the return on investment, truck stops have to weigh how many fleets will install bulk dispensers at their own fueling locations.
Schneider currently has one bulk-fueling location at its Green Bay, Wis., terminal, where it has fueled the four SCR vehicles it is testing.
Penske Truck Leasing, Reading, Pa., said it has refueling capabilities for customers at 600 of its 700 locations in the field.
“Our thought at the moment is to install a bulk container on a case-by-case basis,” said Mark Oliver, Penske’s senior vice president of maintenance.
Penske is testing five units now and will take delivery of 100 by the end of the quarter. Thus far, Penske’s drivers have been purchasing DEF in 2.5-gallon jugs while on the road and they haven’t had a problem finding it.
“We’ve provided jugs on a limited basis for sleeper drivers, but that is more of a safety net,” Oliver said.
Fleets purchasing packaged DEF see it as a temporary solution. The fluid weighs about nine pounds per gallon, which can make jugs cumbersome.
“You’re lifting 19 to 20 pounds of liquid and trying to pour it into your tank,” Airgas’ Crawford said. “There is no vent in the box, so drivers may have to make a hole in the container to help with flow.”
Cost also is a major factor because bulk purchases can save fleets almost 50%. Initial pricing for DEF at the Pilot fuel islands was $2.69 a gallon. DEF in packaged containers can start at $4 a gallon, Crawford said.
To help drivers find DEF, several groups are developing locators. The Department of Energy soon will have a locator on its site, and Integer plans to launch the Web site discoverdef.com in the coming months.
“You can go to the site, plot a route and find where along the line DEF is available,” said Dave Uschwald, Integer’s vice president for North America.
Benecor Inc., Brighton, Mich., provides DEF or urea storage and dispensing to corporations across North America. The company has created finddef.com that will list the amenities of each truck stop and allow locations to pay in to rank their location the highest.
“The realities are that there are very few vehicles on the road, but we do have the site up and running,” said Benecor President Brendan Foster.
