Trucking vs. Congestion Pricing: The Battle for the Roads

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Welcome to the WHAT THE TRUCK?!? Newsletter

Presented by Truck Parking Club. In this issue, we dive into the trucking industry's confrontation with congestion pricing, how a port strike was averted, updates on AI trucks, and much more.

New Year, New York, New Fees

$21.60 — Driving into the Big Apple just got pricier. New York's [congestion pricing plan](Help Center), which took effect on Sunday, is aimed at reducing gridlock and boosting funds for the Metropolitan Transportation Authority. Small trucks entering Manhattan's Central Business District during peak hours will now pay $14.40, while large trucks face a hefty $21.60 toll.

The Trucking Association of New York (TANY) isn't sitting quietly. TANY President Kendra Hems points out that although they aren't "inherently opposed" to congestion pricing, it unfairly singles out 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 Hems

Her point is valid. Have you ever tried moving apartments in Boston using the T? Let's just say delivering groceries via the MTA isn't a feasible option.

Moreover, the New York subway system hasn't been winning the best PR lately. Reports indicate, "Over the past two weeks, incidents such as a woman being set on fire and a rider being pushed onto subway tracks have marred its reputation."

Impact on the Trucking Industry

These new tolls are estimated to add approximately $8,000 a month to Lightning Express Delivery Service's operational costs, which will inevitably trickle down to consumers.

If deliveries can be scheduled outside peak hours (5 a.m. to 9 p.m.), the fare can be reduced by 75%. However, most freight deliveries are restricted to regular business hours.

Strike Averted

Thankfully, the potential port strike set for January 15 was averted as the International Longshoremen's Association (ILA) and United States Maritime Alliance signed a tentative agreement.

This new deal includes 25,000 dockworkers across 14 ports. Freight operators and carriers gain rights to semi-automated equipment, while the union secures new job guarantees and a previously negotiated 62% salary increase.

AI Driving Forward

Nvidia announced its partnership with Aurora Innovations to provide chips for autonomous driving systems, signaling significant strides towards driverless trucking technology.

Simultaneously, Plus also advanced by hiring former FMCSA Deputy Administrator Earl Adams to lead regulatory developments.

The Brokerage Challenge

Kevin Hill from Brush Pass Research reports a staggering loss of over 5,400 freight brokerages in the past 24 months, illustrating the harsh hit from the freight recession.

Active brokerages exhibit trends similar to changes in trucking authorities, underscoring the recession's impact.

The positive news is that many believe the freight recession is over, setting the stage for recovery in the industry.

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