October 31, 2024
Managing Tolls in the Face of Rising Toll Booth Rates
By Bethany Carino, PACCAR Leasing Company (PacLease)
Toll roads have a long history, but in recent years, they have gone through significant and rapid changes. The primary purpose of toll roads is to facilitate the rapid and efficient transportation of a significant volume of people and goods. However, their construction and maintenance costs are substantial, requiring charges for travelers before they can utilize the road. The revenue generated from these tolls is then utilized for road repairs and enhancements. According to World Population Review, the following 15 out of 50 states do not have toll roads and currently have no plans to build them in 2024: Arizona, Arkansas, Connecticut, Hawaii, Idaho, Iowa, Mississippi, Montana, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Wisconsin, and Wyoming.
Raising Toll Rates in the United States
Toll prices differ across the country, and in particular areas, have seen an increase in recent years. The overall number of tolls is gradually expanding across the nation. The primary reason for the rise in toll fees can be attributed to the impact of the pandemic, as tolls strive to recover lost revenue. Additionally, other factors such as changes in prices, including traffic volume, interest rates, and inflation, have also played a role in the toll rate fluctuations. In Washington State, there is a proposal to raise tolls by an average of 10% throughout the week, with a variation of rates depending on the time of day and day of week.
The increase price of tolls varies across states and vehicles. Some examples from Bestpass are:
- In Pennsylvania, common tolls for Class-5 tractor-trailers will increase by just under $1.
- In Texas, several toll lanes are increasing by nearly 4%.
- A possible option for toll payments in California involves raising costs by 50 cents annually for the next five years.
How Raised Toll Rates are Affecting Fleets
The increased cost of tolls can be daunting for fleets. Despite being a routine expense, toll fees can have a rapid and significant impact on a company’s financial bottom line. With toll roads spanning across thousands of miles throughout the country, fleets are faced with the frequent occurrence of encountering tolls multiple times daily. Tolls represent just one of the numerous cost components for trucking fleets, and implementing strategies to reduce these expenses can result in substantial long-term savings. To effectively control costs, fleet managers should prioritize timely payments, enhanced visibility, and find a reliable payment platform provider.
Ways to Manage Tolls
Managing tolls independently can be a daunting task. Without a reliable toll management provider, truck companies may struggle to track their monthly or yearly toll expenses. This lack of visibility makes it difficult for companies to budget and predict their expenses accurately, hindering their ability to make informed financial decisions. Therefore, it is crucial to find a toll management program that meets your requirements. PacLease offers PacToll, a comprehensive tolling solution in collaboration with Bestpass. PacToll covers 40 tolling authorities across 23 states, ensuring that all major toll roads are accounted for in one consolidated invoice. This nationwide tolling solution allows customers to conveniently make a single payment for all their toll usage within a specific timeframe. By utilizing PacToll, customers can simplify the complexities associated with expensive plate tolls, fees, or duplicate toll charges.
Regardless of whether your fleet operates nationwide or within a limited number of states, these price increases will have an impact on all industry participants who rely on toll roads. Consider PacToll as the toll management program that will improve your administration process while also saving you both time and money.
Find out how PacToll a coast-to-coast tolling solution can benefit your fleet.
Learn how PacLease Customized Solutions can enhance your commercial fleet lease or rental experience.
For more great blogs, visits PacLease Blogs.