Multi-State Toll Hikes in Place to Nail Drivers and Freight Costs in 2025

3 Jan 2025
Multi-State Toll Hikes

Beginning in January 2025, drivers throughout several states will face higher tolls for passenger and commercial vehicles, ranging from 3% to 15%. Various transportation authorities gave the green light to the increased rates, citing infrastructure improvement, debt servicing, and operations. However, these changes in variable-rate tolls really drive up the cost of transportation, especially for those hauling freight commercially.


State-by-State Breakdown of Toll Increases
1. New Jersey: Motorists on the New Jersey Turnpike and Garden State Parkway will see a 3% increase in toll rates beginning January 1. The hike, part of the state's 2025 budget, is one of the smallest in the country this year.
2. Pennsylvania: The Pennsylvania Turnpike Commission has approved a 5% toll increase to take effect on January 5. The state also is implementing a new axle count and vehicle height-based classification system instead of weight-based classes. Although close to half of all passenger vehicles will have a reduced toll, commercial vehicles—especially those that are empty—will pay more.
3. Ohio: Ohio Turnpike tolls would rise an average 7.7 percent for passenger and most commercial vehicles. E-ZPass customers with five-axle "high" class vehicles would pay 22 cents a mile, cash and credit card customers, 27.6 cents a mile. Ohio officials called the tolls necessary to continue providing a safe turnpike, and to plan for the future. 
4.Oklahoma: Oklahoma will be home to the country's biggest toll increase, with a 15% increase in Oklahoma Turnpike system tolls that started January 1. Beginning in 2027, there will be automatic 6% increases every two years for inflation. The revenue is set to fund a multi-hundred-million-dollar turnpike improvement program across the state.


New York and New Jersey (Port Authority):
The Port Authority of New York and New Jersey voted to increase the toll for passenger vehicles and trucks by 25 cents starting January 5. These hikes will recur each year until 2028 and will be coupled with inflation adjustments. Beginning in July 2025, the Port Authority also plans to axe its truck volume discount program, which currently reduces the tolls paid by frequent commercial users.

Impact on the Transport Industry
The increased tolls come at a time when freight carriers and shippers are already operating on razor-thin margins. And if the higher toll rates for commercial vehicles-especially in states like Oklahoma and Pennsylvania-translate into higher freight costs, many of those carriers will have little choice but to pass those added expenses along to shippers and, eventually, consumers.
1. For Freight Brokers:
Freight brokers will have to revisit shipping quotes and negotiate the rates with carriers in light of increased tolls. Transparency over such costs would be crucial to maintaining client trust.
2. For Shippers:
Transportation costs for shippers will increase due to increased tolls, especially where routes have high empty backhaul. Strategic route planning and collaborating with efficient carriers will be highly important in maintaining cost efficiency.
3. For Carriers:
Carriers operating in states experiencing major toll hikes-like Oklahoma and New York-will need to either reroute or take the higher operational cost. Eliminating truck volume discounts in the Port Authority region will further complicate the process of optimizing freight movements for the carriers.


Economic and Infrastructure Implications
Transportation officials say the increases are needed to pay for key infrastructure improvements. For instance, the Port Authority is diverting cash to help offset a $3 billion pandemic loss as part of its program to upgrade infrastructure. In Oklahoma, its rate increase will be used to pay for an expansive turnpike improvement effort that keeps roads functional and safe in that state.
But critics argue that repeated increases put an inordinate proportion of the burden on commercial users, who already face extremely high operating costs, and such a change-for an industry reliant on roads-would drive upward the pressure on drivers and fuel prices.


What's Next for Drivers and Business?
The transportation industry is compelled to change rapidly due to growing toll rates. Optimization of routes, cost-sharing models will have to be pursued, and freight broker and carrier must be open with their clients for success through such changes.
These rises in tolls may very well affect consumers by way of goods prices, as the rippled effect of increased transportation costs spreads throughout supply chains across the nation.
While infrastructure improvements are crucial for the future, the immediate cost burden will require careful management by all stakeholders in the transportation sector.


Conclusion
How will these toll hikes impact your operations? Whether you’re a carrier, shipper, or freight broker, planning for these changes is essential to staying competitive in 2025.

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