Welcome to the WHAT THE TRUCK?!? Newsletter presented by Truck Parking Club. In this issue, trucking vs. congestion pricing; port strike averted; AI trucks; and more.
New year, New York, new fees
$21.60 — Driving into the Big Apple just got more expensive. New York’s congestion pricing plan, which took effect Sunday, is aimed at reducing gridlock while raising money for the Metropolitan Transportation Authority. Now, small trucks entering Manhattan’s Central Business District during peak hours will pay $14.40, while large trucks are on the hook for $21.60.
The Trucking Association of New York has been clapping back at the policy. TANY President Kendra Hems says that while the organization isn’t “inherently opposed” to congestion pricing, it unfairly targets trucking.
“The $21.60 per-trip charge for trucks, compared to a once-per-day fee for passenger vehicles, disproportionately burdens the trucking industry, which delivers 90% of goods New Yorkers rely on. Trucks have no choice but to enter the zone as you cannot deliver freight via the subway.” – TANY President Kendra Helms
She makes a good point. One time in Boston, I had to move apartments using the T and it was not efficient at all. You’re not going to be able to deliver to a grocery store on the MTA with much success either.
Not to mention, the New York subway system hasn’t had the best PR as of late. ABC 7 reports, “Over the past two weeks, a man lit a woman on fire. In another case, a rider was pushed onto the subway tracks.”
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“I know they tried after hour delivery programs [to reduce toll costs outside of regular hours], but it doesn’t work in the construction trade.” – Lightning Express Delivery Service’s Joe Fitzpatrick
Lightning Express Delivery Service’s Joe Fitzpatrick told FreightWaves that these new tolls will cost his fleet an additional $8,000 a month. The costs, he says, will be passed on to the consumer.
If you can deliver outside the peak hours of 5 a.m.-9 p.m., fares are reduced by 75%. However, in freight, many delivery locations only receive goods during the workday.
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Early reports do show that traffic has been down since congestion pricing was implemented, while subway ridership is up. It remains to be seen if that will stick, but if you’re a trucker in NYC email me and let me know if your drive has improved enough to offset the fees.
Strike off
Polymarket
Averted, phew – After last October’s brief International Longshoremen’s Association port strike, anxiety was up among shipping managers as issues surrounding automation and the union’s master contract were still up for negotiation on Jan. 15. That was until late Wednesday evening when the ILA and United States Maritime Alliance surprised everyone with a joint statement.
The new deal covers 25,000 dockworkers across 14 ports, and the ILA even allowed some automation into the contract.
FreightWaves reports, “Terminal operators and ocean carriers get broader rights to introduce semi-automated rail-mounted gantry cranes and other technology they say are needed to improve efficiency in container-handling, while the union receives guarantees for new jobs linked specifically to each piece of equipment.”
That on top of the 62% raise they’d previously negotiated in October gives ILA President Harold Daggett a fairly strong win despite the compromise.
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The ILA credited President-elect Donald Trump with helping the union get the ball into the end zone – a move I’m sure Trump himself wanted to see prior to his inauguration on Jan. 20.
Full details of the tentative agreement have not been disclosed and may not be known until the summer.
We’ll be talking all about this on Friday’s WHAT THE TRUCK?!? with What’s Going on With Shipping’s Sal Mercogliano.
Nvidia teams with Aurora; Plus adds a +1
Nvidia effect – While the Nintendo Switch 2 leaks may be some of the biggest mainstream news out of the Consumer Electronics Show, in trucking, all eyes were on an autonomous trucking partnership. FreightWaves’ reports, “Aurora Innovation, Continental and Nvidia recently announced a long-term partnership to deploy driverless trucks at scale.”
Now, Nvidia will begin providing chips for Aurora’s autonomous driving computer systems. Demos may start showing up this year, but don’t expect manufacturing at scale until at least 2027.
Wall Street liked the play. Aurora stock hit a 52-week of $9.83 right after the announcement, and it is up 26.85% over the past five days.
Not to be outdone, Plus also made a big move toward commercialization this week. FreightWaves reports, “Plus has hired former Federal Motor Carrier Safety Administration Deputy Administrator Earl Adams to lead the company’s public affairs and safety advocacy efforts and to advise the company on regulatory developments.”
In Adams’ former role with the FMCSA, he drafted autonomous truck safety proposals.
They’re going to need him too as the industry was dealt a big blow by the FMCSA last month. FreightWaves’ reports, “Federal regulators ruled that autonomous trucking did not provide enough data backing a request to allow traditional warning devices used in roadside breakdowns to be replaced by cab-mounted beacons.”
What’s that mean? Autonomous trucks may also need little autonomous robots to deploy road triangles.
Owner-Operator Independent Drivers Association President and CEO Todd Spencer accused Waymo and Aurora of a “single-minded effort to decrease the number of jobs” while disregarding safety.
Brokerage bloodbath
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-5,409 – Brush Pass Research’s (and FreightWaves alumnus) Kevin Hill just dropped his latest brokerage data, and the numbers aren’t pretty. In the past 24 months, nearly 5,500 freight brokerages have ceased operations.
SONAR
That active brokerages chart saw a very similar run-up and decline that we saw in net changes in trucking authorities.
While neither of these charts accounts for every variable, what they do clearly show is the impact the freight recession had on both capacity and surviving in this market.
The good news is that many feel the freight recession is over and we’re on the road to recovery.
Get the fit
WTT Friday
Port strike averted … now what? – On Wednesday, the ILA and USMX signed a tentative agreement that will avoid a Jan. 15 port strike. What’s Going On With Shipping’s Sal Mercogliano joins the show to discuss the contract and what it means for shipping now and moving forward.
We’ll also look at freight disruptions from California wildfires; shifting ocean alliances; the Panama Canal; Greenland; Canada; the Red Sea conflict; and more.
Plus, all the latest headlines, trends and viral weirdness since our last show.
Catch new shows live at noon EST Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.
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Now on demand
7 days until potential ILA port strike; acquiring Greenland; Gulf of America
Story behind Firecrown’s purchase of EnterTRAINment Junction; Blair blasts freight
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Dooner
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