Value Pricing and Freight Traffic: Issues and Industry Constraints in Shifting from Peak to Off-Peak Movements

Abstract

The Port Authority of New York and New Jersey (PANYNJ), in association with Louis Berger & Associates, Inc., completed a study to determine the potential for reducing peak-period commercial traffic at the interstate crossings between New Jersey and New York City. One of the policy options examined, and the focus here, was the feasibility of encouraging a reduction in peak-period congestion through the use of congestion- or value-pricing incentives. (PANYNJ recognizes the need for a coordinated approach to reducing congestion involving as many of the regional transportation authorities as possible. Also, it is clear that congestion reduction strategies must focus on all vehicles and not simply commercial traffic. The purpose of this research was to better understand the constraints facing that segment of the market. It was not intended to suggest pricing policies focusing exclusively on commercial traffic.) Summarized are some of the findings of a large number of interviews carried out with trucking firms, in particular key personnel of the firms in positions of responsibility or authority with respect to scheduling of deliveries. The interviews, each fairly detailed and in-depth, elicited significant and valuable information to help understand what could be the response of commercial traffic to value-pricing initiatives. Another part of the analysis also is discussed, involving calculating the total value of tolls at the interstate crossings as a proportion of the generalized cost of travel (GCT) facing trucks. The analysis was carried out to assess how much the GCT would be affected by value-pricing incentives.