Big delivery companies’ trucks clog New York streets — and they get millions in discounts on parking tickets while doing so.
Transit advocates wonder whether the discounts incentivize the companies to clog traffic, slowing buses and cars.
Over the last 21 years, companies like FedEx and UPS have gotten roughly $750 million in parking ticket discounts not available to smaller businesses that must navigate the same parking and street rules, records obtained by the Daily News show.
The discounts are issued through the city’s Stipulated Parking Fine Program, which since 2001 has reduced parking fines to the major deliverers in exchange for the companies’ agreement not to contest the violations in city administrative courts.
From the program’s launch May 5, 2001 through the end of 2020, the program led to the dismissal or discounting of $725 million in parking fines, records show.
That’s about $37 million per year — most of which goes to the biggest delivery companies, notorious to New Yorkers for clogging streets with double-parked trucks.
Records show UPS received $15.9 million in discounts through the program in 2017 alone. Federal Express got $6.6 million in discounts that year.
Those discounts aren’t available to private car owners or smaller delivery companies not enrolled in the program.
City officials argue the program saves taxpayers money and prevents the likes of UPS and FedEx from hiring brokers to contest the millions of tickets given to delivery trucks each year.
“Previous analyses by DOF (the Department of Finance, which collects parking fines) have found that ending the program would impose significant costs on the city and taxpayers, without further increasing the parking ticket fines paid by companies,” said Mayor Adams spokesman Jonah Allon, who added the administration continues to “evaluate” the program.
Trucking Association of New York president Kendra Hems said the program is necessary because the city does not have enough commercial loading zones. Drivers in most cases have no choice but to park illegally while making deliveries, she said.
“Prior to the existence of the Stipulated Fine Program, many of these companies were fighting every parking ticket they got,” said Hems. “This is not a handout to the trucking industry by any stretch. They are still paying about $60 million annually in parking fines.”
The Department of Finance under Mayor Adams in May implemented changes to the Stipulated Parking Fine Program, offering larger discounts on tickets issued to trucks parked in bus lanes and “no standing” zones.
That worries transit rider advocates, who fear the further discounts will incentivize more truck drivers to block bus lanes and delay commutes.
But some advocates don’t directly blame delivery companies for the problems. Instead, they see it as a matter of how scarce street space is allocated.
“This is often pitted as bus riders against working drivers, but the real issue is parking,” said Riders Alliance spokesman Danny Pearlstein.
Truckers need more street loading zones “so people can get their work done and bus riders can get where they need to be,” Pearlstein said.
The issue of trucks illegally parked in bus lanes is so bad in some areas of the city — such as 42nd St. in Midtown — that NYC Transit president Richard Davey on Thursday personally ticketed several UPS trucks, a power he is given by virtue of his position.
“The point of fines is to get vehicles out of bus lanes,” said MTA spokesman Eugene Resnick. “Whatever fine schedule accomplishes that will move New Yorkers faster.”