Commerce Express Weekly Road Map:
November 19th, 2024
Keeping you informed on the latest news/insights in our industry.
New York City’s Congestion Pricing Plan Moves Forward with Lower Toll Rates
A plan to charge tolls for trucks and other vehicles driving in the busiest parts of New York City is moving forward after being paused in June. In response, the state’s trucking association has renewed its strong opposition, arguing that the tolls will lead to higher costs for residents.
Last Thursday, Governor Kathy Hochul announced that the congestion pricing plan will be implemented January 5th, 2025, but with reduced toll rates compared to the original proposal. The plan aims to ease traffic congestion in the central business district (below 60th street), reduce air pollution, and generate funding for the city’s public transit system.
Per a press release from the Governor’s office, under the revised plan, large trucks will face a toll of $21.60, down from the previously proposed $36. Smaller trucks will pay $14.40, a decrease from $24. Passenger vehicles will be charged $9, lower than the original $15 toll. The plan also states that prices for travel during the night time in the CBD will be decreased by 75% – in an effort to encourage after-hours truck deliveries.
While some see this as an optimistic opportunity, others – especially industry stakeholders – see this as a negative. One of those being, the Trucking Association of New York, which plans to use their resources to fight this pricing plan. They feel the disproportionate pricing structure negatively impacts truck drivers more than passenger drivers.
Commerce Blog
There are a multitude of directions truckload shippers and brokers can veer towards finding a truck to move their freight. Maybe, too many directions. In the realm of surface transportation, thousands upon thousands of trucking companies (carriers), whether small or large, whether well-known or unknown, exist in the market.
Read more on the pros and cons of working with larger carriers versus smaller ones or independent truck drivers.
Our team presents shippers with several options based on their respective shipping requirements and stated expectations. From there, shippers can choose whichever option holds the most value to them, whether that’s saving on a rate, a faster lead time, or using a familiar carrier.
Can Commerce Express find you the perfect carriers to work with?
[Labor] Work Stoppage ENDS at Major Canadian Ports:
After a 10-day work stoppage, the Canadian government has instructed the Canada Industrial Relations Board (CIRB) to mandate the unions to return to work and enforce final, binding arbitration.
It is anticipated that processing all containers currently at the port, as well as those due to arrive in the coming days, will take some time – potentially a few weeks. During the disruption, vessels were anchored off-shore, and both CN and CPKC halted intermodal train services to the trade gateways.
Cross-Border:
On Tuesday and Wednesday of last week, congestion built up on the Mexico side of the World Trade Bridge as demonstrators blocked the roadway leading to the bridge in Laredo, Texas. As a result, all northbound cargo trucks from Mexico to the U.S. were redirected to the Colombia Solidarity International Bridge, according to Freightwaves. This disruption affected a key route for cargo traffic and cross-border trade.
Diesel Update: The average price of diesel decreased by 3 cents a gallon, putting the average price of diesel at $3.491 per gallon, according to the U.S. EIA.
Additionally, gas prices are lower this Thanksgiving season compared to last year. According to Trucker News the national average was $3.26 on Thanksgiving Day last year, but falling oil prices, this fall might push the national average below $3 a gallon, for the first time since 2021, possibly before the travel rush.
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