Jul 21 2008
If you rely on it, wear it, or consume it, a truck brought it. Unfortunately, excessive state taxation and regulation are increasing the cost of everything that trucks bring you. The latest blow from government regulators is a proposed rule that will waste fuel and add to the cost of all consumer goods.
With skyrocketing fuel prices, New York State Thruway toll hikes, and the onerous ton-mile tax, the cost of shipping goods in New York continues to rise. Adding to this burden, Governor Paterson last month issued draft regulations that would divert truck traffic throughout the state to significantly longer routes.
“The New York State Motor Truck Association (NYSMTA) has serious concerns regarding the impact this regulation would have on the New York economy,” said NYSMTA Acting President, Kendra Adams. “If enacted, the regulation would force trucks to drive more miles to reach their destinations. This will result in increased fuel consumption at a time when trucking companies are doing everything they can to conserve fuel for both budgetary and environmental reasons.”
Today, a truck delivering materials from Syracuse to Corning Glass in Corning travels 200 miles to make one round trip. If enacted, the draft regulation would require the same truck to travel 292 miles. Assuming one truck can make two round trips a day, five days per week, the increased mileage would result in an additional cost of $127,254 per year. About $50,000 of this increase can be attributed to fuel usage (Example assumes $2.66 per mile operating costs and 5 miles per gallon at $5.20 per gallon of diesel). Carriers struggling with rising fuel costs and fighting to stay in business cannot afford to absorb these additional costs. The costs ultimately are passed to consumers in the form of higher prices. At a time when all New Yorkers are struggling with a sluggish economy and record fuel prices, restricting truck access in the state is the wrong policy.
There is also an environmental price to pay for this ill-advised regulation. When diesel fuel burns, it releases 22.2 pounds of carbon dioxide into the atmosphere. In a single Syracuse to Corning round trip, the 92 extra miles would burn another 18.4 gallons of fuel and release 408 more pounds of carbon dioxide.
In New York State, trucks transport nearly 90 percent of manufactured freight and over 91 percent of our communities rely exclusively on trucks to deliver their goods. Trucks ship goods to our hospitals, our schools, our grocery stores, even our front doors. They also deliver raw materials to and finished goods from our manufacturers. In other words, trucks drive the New York economy.