New NYC tolls will come at ‘huge cost’ to trucking industry, ‘trickle down’ to consumers, expert warns
The congestion pricing plan is set to go into effect June 30
New NYC tolls will come at ‘huge cost’ to trucking industry: Kendra Hems
New York Trucking Association President Kendra Hems and attorney Brian Carr highlight their concerns over upcoming changes to New York City tolls.
Traveling into New York City by road will soon come with a new price tag for passenger vehicles and truckers as the state institutes new tolls later this month.
While all vehicles will have a toll to pay, the price put on commercial trucks will have a "huge cost" on the trucking industry, which one expert warns will "trickle down" to consumers.
"For the trucking industry, we'll be charged anywhere from $24 to $36, depending on the size of the truck, every single time, to enter the zone. And that is a huge cost to us as an industry that will ultimately trickle down to consumers," New York Trucking Association President Kendra Hems said on "Cavuto: Coast to Coast," Tuesday.
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According to MTA, the New York City congestion pricing plan is set to go into effect on June 30. Prices are broken down by type of vehicle and include surcharges for taxis and rideshares.
Motorcycles must pay a $7.50 toll, cars a $15 toll and large trucks a $36 toll, while taxis and rideshares have a lower surcharge rate.
Much of Manhattan south of 60th Street is included in the congestion pricing plan.
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"The fact of the matter is, our industry has no choice but to make those deliveries below the zone in order to sustain the economy of Manhattan," New York Trucking Association attorney Brian Carr told host Neil Cavuto.
The association filed a federal lawsuit Thursday, challenging the city's congestion fee, arguing it unfairly targets trucks and logistics with higher rates than passenger vehicles.
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There has been some pushback against the suit, namely a concession that provides a discount on overnight deliveries. Hems noted, however, truckers are still bound by customer demands.
"For the trucking industry, we don't choose when we come into the zone. That is dictated by their customers. And many of which are not able to take overnight deliveries. So we're forced to come into the zone during those high congestion periods," Hems reasoned.
New York Trucking Association President Kendra Hems and attorney Brian Carr outline their concerns with New York Citys new congestion fees which will go into effect on June 30. (Michael Nagle/Bloomberg via Getty Images/FOX Business / Fox News)
In addition, the revenue from the tolls is intended to enhance the public transit services, which Hems notes is another hit for the industry.
"Their intent is to use that money to enhance their transit services, which is another concern for us because we're being asked to pay the bulk of those tolls. Yet we will not derive a benefit from where that revenue is being spent," she said.
The association suggests the transit authority revise its plan to exempt the industry from the fee, limit trucks to being tolled just once a day or toll them at the same rate as passenger vehicles.
The MTA declined to comment when reached by FOX Business.
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FOX Business' Bradford Betz contributed to this report.
