By Seth Gottlieb and Margaret Magnarelli
Recent data from New York City’s congestion pricing program shows worrying trends for the local food supply. At Baldor Specialty Foods, we deliver a huge volume of food—millions of pounds each year—to restaurants, schools, and grocery stores. Many of our customers are located below 60th Street in Manhattan.
Now, every truck entering this area is hit with a charge of $14.40. These fees can quickly add up, leading to potential costs of $300,000 to $400,000 annually for our company alone. This situation is affecting our budget significantly.
We’re not the only ones feeling the impact. The NYC Food Distribution Alliance, which includes over 200 food businesses in the city, reports similar concerns. Members range from Fresh Direct to local fish and meat markets. The additional fees mean that many of these businesses will have to raise prices. The end result? Higher costs for small businesses, like restaurants and bodegas, which will ultimately be passed on to consumers.
Trucks are essential for transporting food in New York City. Almost 100% of the food consumed in Manhattan comes from outside the congestion zone, making reliable delivery crucial. Nonprofit organizations, like the Food Bank for New York City, are also included in our coalition. Extra costs can hinder their efforts to fight hunger, resulting in fewer meals being provided to those in need.
We fully support goals like reducing traffic and improving air quality. But the current policy overlooks that food distribution is vital infrastructure. If access to healthy food declines, it could worsen public health issues related to diet.
We urge Governor Kathy Hochul and the New York Legislature to consider an exemption for essential food distributors operating within the city. This step is necessary to ensure that the congestion pricing program doesn’t negatively impact small businesses and vulnerable populations.
We believe in participating in civic duties, including supporting environmental initiatives. We already contribute to public transit funds. Our point is simple: food distribution is just as critical as utilities or public transport.
To our colleagues in the industry: Your voices are needed. If you’re in New York, please reach out to your elected officials. Let them know the importance of protecting the city’s food supply from the burdens of congestion pricing.
Whether you distribute, wholesale, or sell food, your involvement matters. The future affordability and availability of food in our city depend on addressing these issues appropriately.
Seth Gottlieb is SVP of logistics at Baldor Specialty Foods. Margaret Magnarelli is vice president of marketing and communications at Baldor Specialty Foods.
