Traffic Congestion’s Impact on the Trucking Industry
While nationwide traffic congestion may have decreased, the costs have risen on an annual basis. The American Transportation Research Institute’s latest congestion analysis, “Congestion to the Trucking Industry: 2024 Update,” reveals that congestion on major highways and in key cities across the U.S. continues to cost the trucking industry (and commuters) billions of dollars.
In the 2024 ATRI report, from 2021 to 2022, the overall year-over-year cost of congestion rose by 15% ($14.2 billion). This rise is attributed to the 7.8% inflation rate between 2021 and 2022, according to the report. (Note: this is the most current available date on the topic). So, where are congestion costs the highest? Texas, California, Florida, New York, and Georgia lead the top five states.
Traffic congestion is an inevitable challenge that will always impact the supply chain. Rising congestion for truckers can have some impact on the cost of goods and services. Prolonged time spent in traffic not only increases fuel consumption, driving up fuel costs for businesses responsible for delivery, but these higher operational costs often get passed on to consumers in the form of price hikes. This ripple effect shows how traffic congestion can directly contribute to increased costs throughout the supply chain.
On a similar topic… truckers driving into Manhattan’s central business district will see a congestion toll starting this month. According to the New York Governor’s congestion pricing plan, E-ZPass truckers will need to pay between $14.40 (small trucks) or $21.60 (large trucks) during weekday peak hours (9am to 9pm), truckers without the E-ZPass subject to more. Overnight fees are expected to be cheaper (about $3.60-$5.40 for truckers).
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