Trucking vs. congestion pricing

By FreightWaves On Jan 13, 2025

Welcome to the WHAT THE TRUCK?!? Newsletter presented by Truck Parking Club. In this issue, trucking vs. congestion pricing; port strike averted; AI trucks; and more.

New year, New York, new fees

$21.60 — Driving into the Big Apple just got more expensive. New York’s congestion pricing plan, which took effect Sunday, is aimed at reducing gridlock while raising money for the Metropolitan Transportation Authority. Now, small trucks entering Manhattan’s Central Business District during peak hours will pay $14.40, while large trucks are on the hook for $21.60.

The Trucking Association of New York has been clapping back at the policy. TANY President Kendra Hems says that while the organization isn’t “inherently opposed” to congestion pricing, it unfairly targets trucking.

“The $21.60 per-trip charge for trucks, compared to a once-per-day fee for passenger vehicles, disproportionately burdens the trucking industry, which delivers 90% of goods New Yorkers rely on. Trucks have no choice but to enter the zone as you cannot deliver freight via the subway.” – TANY President Kendra Helms

She makes a good point. One time in Boston, I had to move apartments using the T and it was not efficient at all. You’re not going to be able to deliver to a grocery store on the MTA with much success either.

Not to mention, the New York subway system hasn’t had the best PR as of late. ABC 7 reports, “Over the past two weeks, a man lit a woman on fire. In another case, a rider was pushed onto the subway tracks.”

“I know they tried after hour delivery programs [to reduce toll costs outside of regular hours], but it doesn’t work in the construction trade.” – Lightning Express Delivery Service’s Joe Fitzpatrick

Lightning Express Delivery Service’s Joe Fitzpatrick told FreightWaves that these new tolls will cost his fleet an additional $8,000 a month. The costs, he says, will be passed on to the consumer.

If you can deliver outside the peak hours of 5 a.m.-9 p.m., fares are reduced by 75%. However, in freight, many delivery locations only receive goods during the workday.

Early reports do show that traffic has been down since congestion pricing was implemented, while subway ridership is up. It remains to be seen if that will stick, but if you’re a trucker in NYC email me and let me know if your drive has improved enough to offset the fees.

Strike off

Polymarket

Averted, phew – After last October’s brief International Longshoremen’s Association port strike, anxiety was up among shipping managers as issues surrounding automation and the union’s master contract were still up for negotiation on Jan. 15. That was until late Wednesday evening when the ILA and United States Maritime Alliance surprised everyone with a joint statement.

The new deal covers 25,000 dockworkers across 14 ports, and the ILA even allowed some automation into the contract.

FreightWaves reports, “Terminal operators and ocean carriers get broader rights to introduce semi-automated rail-mounted gantry cranes and other technology they say are needed to improve efficiency in container-handling, while the union receives guarantees for new jobs linked specifically to each piece of equipment.”

That on top of the 62% raise they’d previously negotiated in October gives ILA President Harold Daggett a fairly strong win despite the compromise.