The Trucking Association of New York (TANY) today announced new litigation against the Metropolitan Transportation Authority (MTA) over its soon-to-be-implemented congestion pricing framework in New York City. The lawsuit, filed in the Southern District of New York this morning, argues that the congestion pricing policy unfairly targets trucking and logistics companies, which are charged far higher rates than passenger vehicles.
Under the finalized plan, trucks would be subject to a charge of $24 or $36 per trip into the congestion zone below 60th Street in Manhattan, depending on their size, compared to just $15 per day for passenger vehicles. While the goal of the plan is ostensibly to reduce vehicle traffic during business hours, the MTA is also required to raise at least $1 billion per year with
“The MTA’s reckless congestion pricing policy ignores the warnings and counsel of industry experts on both sides of the Hudson, who warn that the discriminatory way trucks and logistics companies are targeted by the plan will increase costs for residents everywhere,” said Kendra Hems, president of the Trucking Association of New York. “This lawsuit was a step we took only out of necessity after the MTA repeatedly refused to make any concessions to our industry and ultimately used our essential, hard-working members as a tool to meet their arbitrary funding requirements. We hope that we can, through this litigation process, create a more equitable and fair policy that works for New York City.”
The trucking industry, which moves nearly 90 percent of goods in the five boroughs and has their delivery schedules set by the businesses they serve, is subjected to a higher rate because driver behavior is unlikely to be altered by the plan: a 2017 study conducted by the MTA itself found that reducing commercial vehicle tolls in off-peak hours has no impact on vehicle crossing times, underscoring that trucks enter New York City when they have to, not when they want to.
As such, the lawsuit argues that the MTA – knowing that truck demand is inelastic and unlikely to be altered by higher tolls – unfairly targeted trucks with higher rates to raise the mandated $1 billion.
“My drivers would benefit more than most by having less vehicle traffic on the New York City streets, but those drivers have far fewer options – after all, they can’t move
heavy freight via the subway or Metro North,” said Joe Fitzpatrick, founder of Lightning Express Delivery Service and vice chair of TANY’s Board of Directors. “As any responsible business does, we deliver when our customers ask us to deliver, which is during prime business hours. That will not change now, but what will change is higher costs for New Yorkers as a result.”
TANY and its members are not fundamentally opposed to congestion pricing despite taking the step to bring legal action. TANY is fighting to overturn the current version of this plan as it believes it is unconstitutional, and hopes to improve the plan to reduce its adverse impacts and introduce parity for the logistics industry. Potential fixes that would alleviate the grievance include a complete toll exemption for essential industries, a once-a-day limit on tolls levied against trucks, or a middle ground approach that would introduce pricing parity between trucks and passenger vehicles.
