Time-Out for New York City Tolling Scheme

Last month New York’s governor surprised even her own staff members when she abruptly announced an “indefinite pause” of the congestion-pricing regulation charging fees for driving into lower Manhattan during peak traffic hours. The state was set to start collecting tolls on June 30. The governor had expressed her willingness to implement the program even though polls show a large majority of New Yorkers oppose the tax.

Hardest hit, of course, would be truckers and their customers. Small trucks and some buses would be charged a toll of $24 per trip during the peak period and $6 during the overnight period. Large trucking combinations and tour buses would be charged $36 per trip during the peak period and $9 during the overnight period.

While passenger car drivers would pay only $15 per trip, these drivers have alternative transportation choices such as the subway or other forms of public transit. Yet truckers and their customers - shippers and receivers - have no alternative for getting freight picked up or delivered. While the reduced off-peak toll would be popular with truckers, experience has shown that few shippers and receivers are open at night. Ultimately the consumer would pay the tolls through higher costs of goods.

Political insiders blamed the governor’s backpedaling on fear of a backlash for the Democratic Party in the upcoming November election. However, we should also thank the Trucking Association of New York (TANY) for their outstanding efforts in defeating (or delaying) the tolls. ICSA has communicated our thanks to TANY’s chief executive officer Kendra Hems. We will keep you informed of any new developments.