How NYC’s congestion pricing could affect deliveries
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 8 January 2025
⏱️ 7 minutes
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Summary
Congestion pricing enters its fourth day in New York City. If the tolls reduce congestion, it could make deliveries quicker and more cost-efficient, though daytime deliveries would still get pricier. Plus, fires in Los Angeles County have forced tens of thousands to evacuate and come at a fragile time for the Californian home insurance market. And then starting today, Americans visiting the U.K. will need a new digital travel document.
Transcript
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| 0:00.0 | One way to think about a traffic congestion charge, the principle of paying more for faster delivery. |
| 0:09.1 | I'm David Brancaccio. A daily toll for vehicles using the busiest part of New York City has entered a fourth day. |
| 0:15.2 | The new congestion charge is aimed at reducing asthma deaths from air pollution, easing clots of traffic, and raising money for public transit. |
| 0:23.0 | For cars, it can be as much as $9 a day for commercial vehicles that tops out at more than $21 a day, depending on size and time. |
| 0:31.0 | Now, part of the cost-benefit analysis is if the tolls do reduce congestion, it could make deliveries quicker and cost-efficient. |
| 0:38.2 | Marketplaces Kristen Schwab reports. |
| 0:40.6 | Congestion pricing is supposed to encourage people out of cars and onto public transit. |
| 0:45.6 | But that's not really an option for business deliveries. |
| 0:48.6 | Kelly Rula directs the Urban Freight Lab at the University of Washington. |
| 0:51.6 | There isn't an easy alternative to just move a box truck's worth of goods onto the subway, |
| 0:58.4 | for example, to get a restaurant their Pepsi that day. |
| 1:02.5 | But there are strategies companies and customers might use to help reduce their driving |
| 1:06.8 | and delivery costs. |
| 1:07.9 | They could make their packaging more efficient and remap routes, |
| 1:11.4 | or expand cargo bike delivery programs. Or Rula says, schedule deliveries during the late night |
| 1:17.2 | and early morning hours when congestion pricing is less expensive. So you might see businesses |
| 1:24.0 | starting to take into consideration some of these other programs that are in place in the |
| 1:29.1 | city that now maybe pencil out differently now that congestion pricing is in place. |
| 1:34.6 | But not every business can staff a loading dock or freight elevator at two in the morning, |
| 1:39.4 | says Zach Miller, Vice President of Government Affairs at the Trucking Association of New York. |
| 1:43.9 | The challenge is that really that is on the Miller, Vice President of Government Affairs at the Trucking Association of New York. |
| 1:51.2 | The challenge is that really that is on the receiver, not so much the trucking company. |
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