New York City charges UPS and FedEx millions in parking fines

New York City levied parking fines on UPS and FedEx totalling millions of dollars in 2019, which the courier companies had to pay as drivers struggle to find the space to stop off and make deliveries.

FedEx paid $9.8 million for 146,019 violations, while UPS paid a huge $23 million for 348,890 violations.

This is actually an improvement, down from $14.9 million for FedEx and $33.8 million for UPS in 2018.

UPS attributes the reduction to the success of its sustainable delivery projects, including e-bikes and micro-depot solutions, and the need for fewer redelivery attempts due to collections being made from UPS Access Points.

Credit: Colton Duke

However, the company also criticises the city for its lack of commercial vehicle parking, with most curb space devoted to single-occupancy personal vehicles—at odds, says UPS, with the actual priorities of the city.

According to Freight Waves, the data is only captured of vehicles whose license plates are registered as part of the Stipulated Fine scheme, which allows companies like UPS and FedEx to waive their right to challenge parking tickets as long as they agree to pay a preset amount, which reduces the charge for each offence.

Companies like Amazon are not part of the scheme, so there is no data for the number of parking tickets they have earned themselves, and this skews the overall picture somewhat.

New York City takes a sometimes combative stance towards parcel delivery companies if it perceives they are impinging on public space. Last November, the Department of Transportation sent a cease-and-desist letter to FedEx after its delivery robots appeared on the streets as part of a promotional event.

Source: Freight Waves