New York City is offering reimbursements to businesses that shift deliveries to off-peak hours, between 7 p.m. and 6 a.m. More than $4 million remains available in Phase II, which opened Sept. 24. The $5 million program is funded by Manhattan’s congestion toll.
Businesses and carriers can apply for equipment that enables overnight deliveries, including smart locks, cameras, delivery lockers, automatic lighting, low-noise pallet jacks, truck retrofits, cargo bikes, handcarts and electric vans.
Overnight staffing, equipment leases, consulting work and anything bought before a business signs its participation agreement are not covered. DOT says pilot projects found that businesses receiving off-hour deliveries “without having to dedicate new staff are the most satisfied and see the largest operational benefits.”
Participants must commit to 12 months of off-hour deliveries, with each applicant setting its own delivery volume. Monthly data is due by the seventh of the following month. The city can reclaim payments if participants fail to meet their commitments.
Both delivery receivers and carriers can apply for equipment they control. Businesses that receive only parcels from UPS, FedEx, Amazon and similar carriers are excluded because they cannot coordinate delivery timing with those carriers.
The incentives could also reduce toll costs for trucks entering Manhattan below 60th Street. Small trucks pay $14.40 during peak hours versus $3.60 overnight, while large trucks pay $21.60 versus $5.40. However, the toll's overnight period is 9 p.m. to 5 a.m., narrower than the incentive program's window.
The city aims to shift about 62,000 trucks out of peak hours by reaching 5,000 off-hour delivery locations by 2040, according to Supply Chain Dive.
