New York City’s food industry faces a bitter taste as congestion pricing threatens to take a big bite out of their profits.
Do New York’s leaders want to fail?
At a Glance
- Over 100 food industry businesses seek exemptions from NYC’s congestion pricing plan
- Tolls could cost food distributors up to $300,000 annually
- Concerns raised about impact on NYC’s food supply chain and small businesses
- Food Bank for NYC estimates $30,000 annual cost, equivalent to 90,000 meals
- Coalition actively lobbying for exemptions, citing essential nature of food services
Food Industry Unites Against Congestion Pricing
A coalition of over 100 food industry businesses, led by Baldor Specialty Foods, is pushing back against New York City’s congestion pricing plan set to begin in January 2025. The group, which includes food distributors, trade associations, wholesale markets, food banks, restaurateurs, and small businesses, argues that the plan could severely impact NYC’s food supply chain, small businesses, public health, and hunger relief efforts.
The NYC Food Distribution Alliance, formed by logistics companies, is seeking exemptions for delivery trucks from the tolls. Members of this growing coalition, which now includes over 200 businesses, range from major distributors like Chefs’ Warehouse and FreshDirect to local markets and seafood suppliers like Acme Smoked Fish and Pierless Fish.
The financial strain on food distributors is significant. Baldor Specialty Foods, a family-owned distributor servicing over 14,000 accounts in the Northeast and Mid-Atlantic regions, faces potential costs of up to $300,000 annually due to the new tolls. Smaller companies like LP Brands, a seafood distributor, expect to pay around $60,000 a year in congestion tolls for their fleet.
The tolls vary by vehicle size and time of day, with large trucks paying $21.60 during peak hours. While discounts are available for off-peak deliveries, the financial burden remains substantial for many businesses already grappling with other expenses like parking tickets and MTA payroll taxes.
Impact on Food Prices and Availability
The ripple effects of these additional costs are likely to be felt by consumers through increased food prices. Margaret Magnarelli, VP of Marketing and Communications at Baldor, highlighted the unique challenges facing food distribution in New York City.
The coalition is actively lobbying local, state, and national representatives to support their cause. They are seeking a meeting with Governor Kathy Hochul to express their concerns about how this policy could affect local businesses and consumers. The group is encouraging businesses in NYC’s five boroughs to sign their open letter and promote it on social media.
But so far, Hochul and others haven’t indicated that they even…care.
