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▲ thelastgallon 4 hours ago

Trucking is already subsidized because they don't pay their fair share of costs. Road damage is proportional to the 4th power: https://en.wikipedia.org/wiki/Fourth_power_law

Roads are entirely subsidized by people. Commercial trucks should bear the fair costs to make it equitable. Businesses will have the greatest incentive to cut costs and improve logistics.

And we need to talk about the externalities and fossil fuel subsidies, $7T/year worldwide (yale).

▲kimixa 29 minutes ago | parent | next [-]

Tyres are also a massive source of micro plastics in the environment, as another example of one of the "uncounted externalities".

This suggests it may be the source for over a quarter of all environmental micro plastics [0]

Some reports suggest it could be even higher, this article [1] references a pew report suggesting tyres could be the source for over three quarters of the micro plastics found in the ocean.

Though it's not as if they're just driving around for fun (most of the time), but not costing these sort of externalities means the market doesn't realistically consider alternatives even if they "should" be more efficient, to "cheaper" when all the /real/ costs are added up.

[0] https://www.port.ac.uk/news-events-and-blogs/blogs/protectin...

[1] https://www.euronews.com/2023/10/02/toxic-tyre-dust-this-sou...

▲fulafel 2 hours ago | parent | prev | next [-]

Significantly: externalities from co2 emissions. Which is not just money, but lives.

▲bluecalm an hour ago | parent [-]

With trucking CO2 is the least of your problems. The fumes are carcinogenic. Brake and tire dust doesn't help either. Electric trucks would be a huge improvement on all fronts.

▲crote 38 minutes ago | parent [-]

Not the tire dust. Electric trucks are heavier, so they'll chew through more tires per freight-kilometer.

▲TacticalCoder 2 hours ago | parent | prev | next [-]

> Trucking is already subsidized because they don't pay their fair share of costs.

And that's an understatement: personal vehicles are so light they hardly damage the roads. This can be seen on three-lanes european highways where the leftmost lane is always totally pristine while the rightmost lane is often damaged and badly curved where trucks wheels do pass.

In the wikipedia link you gave it talks about 10 000 : 1 but for many cars and for many trucks it's more like 50 000 : 1.

Cars don't even register.

Now of course should commercial trucks bear the fair costs for being the only ones to damage the roads, everything would be pricier for merchandise price would need to be adjusted for the added logistics costs.

▲thelastgallon 2 hours ago | parent | next [-]

> And that's an understatement

Indeed!

Trucking industry has many subsides, perverse incentives and (un)intended side-effects.

1) Fossil fuel subsidies, $7T/year worldwide. Poor countries subsidize a lot!

2) Biodiesel subsidies to grow crops.

3) Biodiesel subsides externalities. This directly increases cost of crops, food, livestock, as it reduces acres available to grow food.

4) Significant Health costs from pollution. (nytimes, 10M deaths/year from air pollution)

5a) Diesel fuel is less refined than gasoline, featuring longer carbon chains and higher natural levels of sulfur and nitrogen

5b) Because of how heavy they are, they are significant source of particulate matter from road dust, tire dust, brake dust

6) Real estate. Real estate is scarce and costly. Roads are 15 - 20% of a citys area. People pay for it, businesses get to use it for free.

7) They don't pay their fair share of road maintenance for the damage they cause.

8) Because of the damage they cause, roads need to be continuously maintained. Every road is always under construction, disrupting everyday life and causing congestion. If we build roads just for cars, they could go a decade or more without repaving.

9) Paving and repaving roads, building new roads is a cornucopia of money for politicians and their contracting company buddies. This is trillions of dollars worldwide.

10) Businesses running highly efficient modes of transportation can't compete.

11) With so many subsidies for the super rich, local communities which were producing the same goods locally can't compete.

A lot of people think its they sacred duty to protect the profits of a few dozen/hundred super rich and defend their right to extract subsidies/taxes from all of us. AI is probably going to destroy a lot of jobs. For the jobs that aren't destroyed (regulation requiring human in loop), the skill<->wage leverage will be destroyed, everyone is reduced to a flipping burgers at McDs kind of job. But you will be outcompeted by people who can work for cents/hour from a third world country.

▲peebee67 an hour ago | parent | next [-]

> 8) Because of the damage they cause, roads need to be continuously maintained. Every road is always under construction, disrupting everyday life and causing congestion. If we build roads just for cars, they could go a decade or more without repaving.

Checks out. The residential suburban streets I've lived on have been resurfaced on about that timeframe, maybe a little less, with patch-ups in between. Say, how do the houses on those streets get built without trucking? What about the food in the nearby (much closer than the nearest train line) shops get supplied?

I'm one of those people whose brain works such that that rail and nuclear power plants are how we should be solving problems because I know how good they look to a physicist and engineer, so I am right there with you. But be practical: The guys running the machinery that literally makes society possible deserve to be compensated fairly and I don't see many trucking magnates living large at the rest of our expense.

There are some externalities we can afford to subsidise, and unless you've the stomach for putting in 100x as much public money into rail for a ROI measured in half-centuries, paying for high quality roads that you also get the direct benefit of should grind your gears less than most of the other economic imbalances you could name.

▲aoeusnth1 43 minutes ago | parent [-]

> But be practical: The guys running the machinery that literally makes society possible deserve to be compensated fairly and I don't see many trucking magnates living large at the rest of our expense.

Properly taxing trucks will be mostly passed onto the consumer, not reducing their compensation much, and it would significantly reduce the number of trucks on the road (a good thing). Out of equilibrium, it would cause many of them to go under and compensation would crater... so of course it would be wildly unpopular.

▲citrin_ru 22 minutes ago | parent | prev [-]

> Fossil fuel subsidies, $7T/year worldwide. Poor countries subsidize a lot!

That’s puzzles me a loot - there are many countries which hardly have any money for social safety net yet they keep fuel and electricity prices very low as a matter of government (social) policy and poor people benefit the least because they don’t drive and use little electricity.

▲serioussecurity 2 hours ago | parent | prev [-]

I don't think this is quite accurate.

If trucks were forced to bear their share of the burden we might see a significant shift in how we transported goods, including more rail.

(Yes, I know rail doesn't work for last mile.)

▲scott_w 2 hours ago | parent [-]

It does need to be paired with investment in train infrastructure, usually led by governments.

Obviously, that would be a very good thing, just pointing it out!

▲Scapeghost an hour ago | parent | prev | next [-]

> Road damage is proportional to the 4th power. Roads are entirely subsidized by people. Commercial trucks should bear the fair costs to make it equitable.

Why not use trains for heavy transport?

I lived in a country where the roads between major cities were constantly swarming with hundred trucks coming and going. Even as a kid I thought that can't be efficient! It's certainly not comfortable for everyone else. Sometimes they'd be tipped over on their side. Sometimes there would be a tiny car crushed under them.

The barons certainly don't care about pollution, but don't they see the increased cost of paying each individual driver and risk of accidents per vehicle?

The government added more lanes and diverted routes just for trucks, but still no rail...

▲fedpost 44 minutes ago | parent | next [-]

That would be great, but the railroads have torn up most of their own lines and refuse to move anything that might be needed inside of a month from ship date because PSR means they only run one mega train periodically. They also routinely refuse profitable runs because they're not as profitable as their other runs and they calculate success only in terms of profitability rate.

US railroads think the ideal railroad is one that owns no track and carries no freight.

▲ 44 minutes ago | parent | prev [-]
[deleted]
▲paganel an hour ago | parent | prev | next [-]

Without trucks being subsidised we'd have much more expensive groceries on our shelves. In a way you can see this as regular drivers subsidising the price of food for everyone else, which is not at all a bad deal if one looks at society as a whole. Or we can make truck companies pay 10 times more on road tax and then pass down those taxes to the poorest among us, but I don't think that that would be a good deal when it comes to our society as a whole.

▲mitthrowaway2 an hour ago | parent | next [-]

Why not subsidize the groceries instead, then? And let the market find efficiencies with reduced transportation distances. Or better yet, just subsidize the poorest among us, or even everyone via UBI. Why settle on diesel trucks as the thing to subsidize above others?

▲paganel 44 minutes ago | parent [-]

> Why not subsidize the groceries instead, then?

Then you'd have the State giving money directly to the likes of Unilever (think tooth-paste) and big agro-business (think bread). Subsidising transport instead is the lesser of many evils.

> And let the market find efficiencies with reduced transportation distances.

Market doesn't work when it comes to most of us.

> Or better yet, just subsidize the poorest among us,

This is just praying to bringing in servitude amongst us, it will go like this: "we will stop subsidising your daily bread if you stop voting for us". The same goes for the idea of UBI more generally speaking.

▲thelastgallon an hour ago | parent | prev | next [-]

Wrong on many levels, already refuted by many commentors.

If food needs to be subsidized, subsidize it directly. Already done with food stamps, etc. You can apply here: https://www.usa.gov/food-stamps

If food gets costlier, people will eat less and it will reduce obesity, metabolic syndrome and save trillions of dollars in healthcare costs every year. The poor, who you seem to be so concerned about, can't afford the costliest healthcare on the planet.

▲solatic an hour ago | parent [-]

> food gets costlier, people will eat less

Wrong. As food gets costlier, people shift eating habits from healthier but more expensive food to cheaper ultra-processed food. There are similarities elsewhere, like the iron law of prohibition: making opium more difficult to sell shifted the market to heroin, and eventually to fentanyl.

▲Y-bar an hour ago | parent | prev | next [-]

Or we can have a highly functional train system and not use freight trucks for long haul transportation. Small and medium sized trucks for last mile delivery is significantly less problematic.

▲bluecalm 31 minutes ago | parent | prev [-]

>>Without trucks being subsidised we'd have much more expensive groceries on our shelves.

This doesn't make any sense. If total subsidy is X and you remove it then prices should at most raise by X (in aggregate). It is at best an even trade. In reality it's worse because it creates perverse incentives.

If you want to help people then you can spend the same money by subsidizing groceries directly. You can also lower taxes for workers or 101 different things that help lower income people without promoting one way of doing transport.

▲behringer 3 hours ago | parent | prev | next [-]

Sounds like a great way to end up with tolls on all the roads. Or no access to the roads at all.

▲thelastgallon 3 hours ago | parent | next [-]

No, you should fight for free roads. How many ways do you want to subsidize the super rich? Why are you fighting for their interests?

▲SideQuark 2 hours ago | parent [-]

Fighting for free roads is a sure way to have crap or no roads to a lot of places. If you (or any consumer) gets value from there bring roads, then you should pay some for that value. It’s not subsidizing the super rich - sounds like you want others to subsidize you.

▲kelseyfrog 2 hours ago | parent | prev [-]

Or mileage * weight^4 based fees. It would have the added benefit of reducing the amount of gender-affirming trucks on the road.

▲SoftTalker 4 hours ago | parent | prev | next [-]

And?

Almost everything we eat or otherwise need for a comfortable life is transported by truck at some point. We all benefit from that. So we either pay more for trucking so that they can pay more for roads, or we just pay for the roads directly.

▲thelastgallon 4 hours ago | parent | next [-]

Consumers shouldn't pay more for roads to subsidize trucking. Businesses which use trucking more will pay more and if it costs an arm and a leg, they will figure out how to cut costs. There are lots of PhDs in Logistics, Operations Research who know how to think about these.

Local production within the communities may become competitive if we aren't subsidizing trucking. Local production has become uncompetitive because of these perverse incentives.

Consumers shouldn't pay anything at all for roads. Road costs should be entirely borne by businesses which are using them. The damage by cars is insignificant, too low to count. And consumers driving on roads see billboards, this is free eyeballs for businesses. Just like youtube is free with ads, roads should be free for car drivers with ads or some other form.

▲SideQuark 2 hours ago | parent | next [-]

> Consumers shouldn't pay anything at all for roads.

If consumers get value from roads they should pay. Consumer road damage is certainly measurable, since plenty of roads disallow heavy trucks.

It’s silly to claim because one can see a billboard that the billboard would subsidize the value a consumer derives from roads. Putting up a billboard didn’t cause consumer utility of having a road to become zero. And private property owners are generally free to put up plenty of things, billboards included, without this odd request they subsidize others that look onto their property.

▲anomaly_ 3 hours ago | parent | prev [-]

You understand that all business activity in an economy is driven by consumers. Everything is downstream of consumer demand.

▲thelastgallon 3 hours ago | parent | next [-]

Then, subsidize everything for all businesses?

Consumers are already paying heavy taxes for defense, trillions of dollars/year to protect business interests of the super rich everywhere.

▲ssl-3 2 hours ago | parent [-]

I would rather that we subsidize the consumers.

(The super rich will still be super rich.)

▲igor47 3 hours ago | parent | prev | next [-]

What does this have to do with internalizing costs to businesses? By your logic, the government should just subsidize all consumer goods... Which, okay maybe I actually agree with you? (Jk I'm not that much of a socialist. I think markets are great, and we should leverage them by fully pricing externalities like road damage or pollution, enabling the market to solve some of our big problems)

▲kjshsh123 3 hours ago | parent | prev [-]

Consumer demand can still be distorted.

I said this in another comment:

Imagine if we subsidized things that were an orange colour. Market prices of orange things would go down and consumption of orange things would go up. It wouldn't make sense to say "this is helping the many people that consume orange things therefore it is good".

▲igor47 3 hours ago | parent | prev | next [-]

If the costs of trucking is internalized, it then factors into the cost of goods shipped by truck. This makes it possible for competitors like rail or local produce to complete, which then allows consumers to save money. On the other hand, if the cost is externalized, we secretly pay more without even having the possibility of paying less.

▲andrewflnr 2 hours ago | parent | prev | next [-]

The point of a market economy is to make prices accurately reflect costs. If moving things over the roads on trucks costs repair labor and materials, the price of things moved over the roads should reflect that. But maybe it's possible instead for those goods to be moved some other way with lower actual cost, and thus charge a lower price. But no one bothers finding that out if we just swallow the cost with a glib excuse of "well we all benefit".

▲Fezzik 3 hours ago | parent | prev | next [-]

The annual net profit of the trucking industry in the USA is $30-$40 billion dollars. They aren’t scraping by and could certainly pay for their proportion of the damage trucks inflict on roads.

▲thelastgallon 3 hours ago | parent | next [-]

It is NOT the profits of trucking industry, the trucking industry will remain intact and fine. It is the profits of ALL the companies using trucking, they get to upgrade their businesses with the new model. And the innovative businesses which figure out how to do logistics better will survice.

This also gives a fighting chance for local production. Why are we hell bent on screwing local communities and protect the subsidies to the super rich?

▲jcranmer 3 hours ago | parent | prev | next [-]

The annual revenue of the trucking industry is roughly $900 billion. That puts their net profit margin at about 3-5%.

I suspect many commenters here work in companies that expect their profit margins to be 10× that.

▲Ekaros an hour ago | parent | prev | next [-]

That number is laughably low compared to value of cargo they move. Really they should get to tech company model. Take 20-30% of value what they transport. Say you got 100 billion of AI servers. 30% of that goes to trucking company when they move it point to point.

▲bitmasher9 3 hours ago | parent | prev [-]

$30-$40 billion sounds like scrapping by to me. For an entire industry, one of the most important in the country.

▲epolanski 4 hours ago | parent | prev | next [-]

Move more of it to rail.

▲rekttrader 3 hours ago | parent | next [-]

As much of it as possible is done by rail, it’s the last mile problem.

Unless it’s last minute which a surprising amount of it is, but consumers love overnight access to stuff

▲igor47 3 hours ago | parent [-]

Let those consumers pay for it then!

▲trollbridge 3 hours ago | parent | prev [-]

What rail? The railroads are at capacity

▲ssl-3 2 hours ago | parent [-]

They are? Is there a chart or a map or a study or something that supports this?

▲kjshsh123 3 hours ago | parent | prev [-]

It might be more economical for cargo to be moved by other means or for many people to live closer together than they do.

Imagine if we subsidized things that were an orange colour. Market prices of orange things would go down and consumption of orange things would go up. It wouldn't make sense to say "this is helping the many people that consume orange things therefore it is good".

▲thesmtsolver2 3 hours ago | parent | prev | next [-]

So should we then makes buses also pay their fare share? I know you will then respond with second-order effects of buses and public transportation without considering that for trucks.

And yeah you can have rail for every city and store in a distributed country like the US.

▲thelastgallon 2 hours ago | parent [-]

Buses? Where? In the US they are as rare as unicorns. It depends on location. In third world countries metros, it is best to run electric buses for free and tax cars. It will reduce traffic and avoid hundreds of billions of road expansions if everyone is driving a car.

▲Terr_ an hour ago | parent [-]

Anecdotally on my own US highway commute, the ratio of public-buses to large trucks is very small, in the range of 1:50 to 1:100.

The thing I'd like to highlight is that each category has a very different profile for which roads they use, and how heavily.

▲Ekaros 2 hours ago | parent | prev [-]

And pedestrians, cyclist and such pay nothing. We should easily gate all sidewalks and make them pay fair share of cost needed to build that infra. Just have payment terminals before and after each crosswalk allowing them to pay their fair share of use of roads.

▲koliber 2 hours ago | parent | next [-]

Road damage is proportional to the 4th power of the weight of the thing that passes over them.

I hope you were just making a snarky joke as there is effectively no road damage done by pedestrians and cyclists.

▲Ekaros an hour ago | parent [-]

They are still free loading on infra they have not paid for. I see no reason not to make them share the cost too especially for the space they need to be dedicated to them.

▲thelastgallon an hour ago | parent | next [-]

The local communities paid for that infra. With zoning laws and during the development of subdivision. The cost of land for their lot reflects the additional land cost and and infra developed. They also pay utility connection fee so the city can build plumbing/sewage infra.

Also, homeowners pay 3% property tax (Texas). This pays for everything local, schools, roads, police, parks and a ton of other things.

Homeowners also pay their HOAs, while not as much as property taxes, this covers a ton of things within their subdivisions.

The super rich are free loading on all of this infrastructure.

▲Symbiote an hour ago | parent | prev | next [-]

Pedestrians and cyclists save money by reducing healthcare costs, sick days, aged care etc.

They should get a credit each time they use a road.

▲briffle an hour ago | parent | prev [-]

My state charges a fee for every new bicycle that is purchased in the state to help cover costs.

▲thibaut_barrere 2 hours ago | parent | prev [-]

Pressure on the road, and profits, are not similar to those induced by pedestrians and cyclists.