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An aerial view of Phillips 66 oil refinery is seen in Linden, New Jersey, United States on May 11, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

A perfect storm is taking place in the diesel market, with dwindling diesel reserves, a drought on the Mississippi River pushing more product to rail and truck, and a possible rail strike leading to a surge in prices that is expected to continue.

Diesel prices have increased by 33% for November deliveries.

“The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks,” said Andy Lipow, president of Lipow Oil Associates, LLC.

Reserves for diesel this time of year have not been this low since 1951, with the greatest shortfall in the Northeast region including New York and New England.

“This is not only constricting the ability of farmers to export the soybeans and grain they grow but also to receive the fuel and fertilizer they need to operate,” said Mike Steenhoek executive director of the Soy Transportation Coalition of the low water conditions that have turned the Mississippi River from a multi-lane interstate to a two-lane highway.

“Now adding insult to injury is the increased uncertainty that railroads will be able to provide an effective lifeline during this critical time. It’s a vivid reminder that it is not enough to produce a crop or have demand for that crop. Having a reliable supply chain that connects supply with demand is also essential for farmers to be successful,” Steenhoek said.

Two rail unions recently voted down a labor deal needed to avert a national strike in the coming months.

East Coast refineries operating at max capacity

Diesel inventories in the New York/New England markets are facing an acute crisis, down over 50% since last year and at the lowest level since 1990, according to Lipow.

Lipow said East Coast refineries are making as much diesel as they can and dependent on tankers and barges for supply, any weather delay causes a terminal to run out of product..

According to the EIA, East Coast refineries operated at 100% capacity in June and July.

“Last week, they operated at 102% of capacity,” Lipow said. “No more supply is forthcoming from the four East Coast refineries.”

Diesel fuel and heating oil are the problem children of the petroleum complex, says Again Capital's Kilduff

New England’s diesel supply issues were made worse when a Canadian refinery in Newfoundland shut down in 2020 as the pandemic impacted on demand.

The Midwest is also seeing supply constraints, pushing up costs for farmers.

“In visiting with a number of farmers, the consensus, of course, is that diesel costs are one more incursion into profitability,” Steenhoek said. “As far as getting supplies, it looks like those areas most dependent upon the river are experiencing the biggest challenge. A couple of farmers told me diesel supply via their local vendor is day to day.” 

Jones Act restrictions on foreign vessels

In order for the Northeast to receive more diesel, the fuel needs to be imported from another country or a tanker from the Gulf Coast, but that is not allowed because of the Jones Act,  also known as the Merchant Marine Act of 1920, which prohibits a foreign vessel from transporting all goods between two U.S. ports.

“The Jones Act requires all cargo transported between U.S. ports be carried on ships that are U.S. flagged and built, and mostly owned and crewed by Americans,” said Captain Adil Ashiq, United States Western region executive for MarineTraffic.

According to MarineTraffic, the 56 Jones Act tankers are being used. One way to add more supply quickly is for the Department of Homeland Security to temporarily waive the act for foreign vessels to move the fuel. The Jones Act was last waived for a tanker filled with diesel from the Gulf to go to hurricane-stricken Puerto Rico where the energy was needed for power generators.

As a result of the small quantity of U.S.-owned and operated tankers available for energy transport, the price to book a Jones Act tanker is about double that of a foreign-flagged tanker. For example, a Jones Act tanker carrying 300,000 barrels of diesel from Houston to Boston costs approximately 16 cents per gallon. If the Jones Act was waived, a foreign flag tanker carrying the same amount of fuel and heading to the identical location is estimated to cost half, 8 cents per gallon. This 8-cent per gallon difference translates into a $1 million savings per tanker. This is one of the reasons why energy traders favor using foreign flag tankers versus Jones Act tankers.

“If the [Biden] administration wants to replenish New England gasoline or distillate inventories at the expense of exports, they need to waive the Jones Act for refined products loading on the Gulf Coast for delivery to New York, New Jersey, and New England,” Lipow said. “Unfortunately, I don’t think they will do it until it is too late.”

Traders profit, Russia ban looms

Traders are diverting tankers away from Europe to the U.S. because the price of U.S. diesel is now higher than in Europe so they can make a larger profit. So far, two tankers have arrived and unloaded.

According to MarineTraffic, the tanker Thundercat was originally destined for the Netherlands after being loaded in the Middle East with about 650,000 barrels (the equivalent of 27 million gallons) of diesel. It went to New York. Another tanker, Proteus Jessica, loaded in the Singapore area with a similar diesel supply also headed to New York.

For regions including New England, competition with Europe for diesel supplies will intensify next year when an EU ban on Russian refined product purchases is implemented, Lipow said. Diesel exports are of particular interest with the date of February 5, 2023, when the EU sanctions on Russian refined oil products begin, said BIMCO’s chief shipping analyst Niels Rasmussen, adding that 90% of the EU’s import volumes are diesel.

“The EU must replace on average 2 million tons of diesel imports from Russia,” Rasmussen said. “In addition, the International Energy Agency has estimated that the EU’s demand for refined products will increase by 300,000-500,000 barrels per day during winter to meet heating demands.”

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Meet the newest EV from Hyundai – new HX19e electric excavator

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Meet the newest EV from Hyundai – new HX19e electric excavator

The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.

The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.

The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.

Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.

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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:

  • enclosed cab vs. open canopy
  • 32 or 40 kWh battery capacity

All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.

Like its counterparts at Volvo CE, the new Hyundai excavator uses automotive-style charging ports to take advantage of existing infrastructure at fleet depots and public charging stations. More detailed specifications, dimensions, and pricing should be announced by bauma.

Electrek’s Take

HX19e electric mini excavator; via Hyundai Construction Equipment.

The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.

SOURCE | IMAGES: HD Hyundai; via Construction Index, Equipment World.

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Harbinger guarantees incentive pricing to combat Trump Administration chaos

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Harbinger guarantees incentive pricing to combat Trump Administration chaos

With the Trump Administration fully in power and Federal electric vehicle incentives apparently on the chopping block, many fleet buyers are second-guessing the push to electrify their fleets. To help ease their minds, Harbinger is launching the IRA Risk-Free Guarantee, promising to cover the cost of anticipated IRA credits if the rebate goes away.

The‬‭ Inflation Reduction Act‬‭ (IRA) 45W Commercial Clean Vehicle‬ Credit‬‭ offers up to $40,000 per medium-duty commercial EV. Originally proposaed as part of President Biden’s Green New Deal package, the incentive‬‭ was put in place to help modernize commercial fleets by overcoming obstacles like the higher up-front costs of EVs.

In the case of a Harbinger S524 Class 5 chassis with a 140 kWh battery capacity with an MSRP of $103,200, the company will offer an IRA Risk-Free Guarantee credit of $12,900 at the time of purchase, bringing initial cost down to $90,300. This matches the typical selling price of an equivalent Freightliner MT-45 diesel medium-duty chassis.

“We created (the IRA Risk-Free Guarantee) program to eliminate the financial uncertainty for customers who are interested in EV adoption, but are concerned about the future of the IRA tax credit,” said John Harris, Co-founder and CEO of Harbinger. “For electric vehicles to go mainstream, they must be cost-competitive with diesel vehicles. While the IRA tax credit helps bridge that gap, we remain committed to price parity with diesel, even if the credit disappears. Our vertically integrated approach enables us to keep costs low, shields us from tariff volatility, and ensures long-term‭ price stability for our customers.”

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Harbinger‬‭ recently revealed a book of business consisting of 4,690 binding orders. Those orders are valued at approximately $500 million, and fueled a $100 million Series B raise.

Electrek’s Take

Harbinger truck charging; via Harbinger.

One of the most frequent criticisms of electric vehicle incentives is that they encourage manufacturers and dealers to artificially inflate the price of their vehicles. In their heads, I imagine the scenario goes something like this:

  • you looked at a used Nissan LEAF on a dealer’s lot priced at $14,995
  • a new bill passes and the state issues a $2500 used EV rebate
  • you decide to go back to the dealer and buy the car
  • once you arrive, you find that the price is now $16,995

While it’s commendable that Harbinger is taking action and sacrificing some of its profits to keep the business growing and the overall cause of fleet electrification moving forward, one has to wonder how they can “suddenly” afford to offer these massive discounts in lieu of government incentives – and how many other EV brands could probably afford to do the same.

SOURCE | IMAGES: Harbinger.

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It just gets worse for Nikola as massive hydrogen recall follows bankruptcy

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It just gets worse for Nikola as massive hydrogen recall follows bankruptcy

Whoever is left at Nikola after the fledgling truck-maker filed for Chapter 11 bankruptcy protection last month is probably having a worse week than you – the company issued a recall with the NHTSA for 95 of its hydrogen fuel cell-powered semi trucks.

Nikola filed for Chapter 11 protections just a few weeks after we predicted the company would go “belly up,” reporting that the company was planning to halt production of its hydrogen fuel cell-powered semi trucks while, at the same time, Nikola’s stock had sunk to a 52-week low following a formal NHTSA complaint claiming the fuel cell shuts down unpredictably.

That complaint seems to have led to the posthumous recall of 95 (out of about 200) Nikola-built electric semi trucks.

The latest HFCEV recall is on top of the 2023 battery recall that impacted nearly all of Nikola’s deployed BEV fleet. Clean Trucking is citing a January 31, 2025 report from the NHTSA revealing that, as of the end of 2024, Nikola had yet to complete repairs for 98 of its affected BEVs. The ultimate fate of those vehicles remains unclear.

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Electrek’s Take

Nikola Coyote Container completes historic trip in fuel cell truck
Image via Coyote Container.

I’ve received a few messages complaining that I “haven’t covered” the Nikola bankruptcy – which is bananas, since I reported that it was coming five weeks before it happened and there was no “new” information presented in the interim (he said, defensively).

Still, it’s worth looking back on Nikola’s headlong dive into the empty swimming pool of hydrogen, and remind ourselves that even its most enthusiastic early adopters were suffering.

“The truck costs five to ten times that of a standard Class 8 drayage [truck],” explained William Hall, Managing Member and Founder of Coyote Container. “On top of that, you pay five to ten times the Federal Excise Tax (FET) and local sales tax, [which comes to] roughly 22%. If you add the 10% reserve not covered by any voucher program, you are at 32%. Thirty-two percent of $500,000 is $160,000 for the trucker to somehow pay [out of pocket].”

After several failures that left his Nikola trucks stranded on the side of the road, the first such incident happening with just 900 miles on the truck’s odometer, a NHTSA complaint was filed. It’s not clear if it was Hall’s complaint, but the complaint seems to address his concerns, below.

NHTSA ID Nu. 11621826

Screencap; via NHTSA.

Optionally, you could just read Hall’s summary of the Nikola situation, in his own words: “I have dealt with more tow trucks in the last 10 months than in my entire 62 years on this Earth.”

The company issued a technical service bulletin (TSB) on October 29th, just 13 days after the official NHTSA complaint was filed.

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