Latest news with #YoungBrothers
Yahoo
14-04-2025
- Business
- Yahoo
Neighbor island businesses worry of shipping rate hike, tariffs
HONOLULU (KHON2) — The state Public Utility Commission has been holding public hearings on Young Brothers' request for a 27% rate increase for interisland cargo. 'Young Brothers is here because it is facing financial distress, its current rates were first approved on an emergency basis in August 2020, almost five years ago,' Kris Nakagawa, vice president of external and legal affairs for Young Brothers, told the PUC during the Oahu hearing. Pickleball players battle on the court at Honolulu Open Those emergency rates were a 46% increase due to the pandemic. 'While these current rates carried YB through the pandemic, operating costs for YB, like most other companies, have continued to rise in the past four years. Intrastate or interisland cargo volumes never recovered to pre-pandemic levels and are currently declining further. Without immediate rate relief, YB will not be able to maintain its loans, cover its operating costs, or make the necessary capital investments to ensure safe and reliable service,' he continued. Young Brothers broke down the cost if the 27% increase were approved. 'Currently, the cost to ship a personal medium size car from Honolulu to Maui one way is approximately $334,' Nakagawa said. 'If the commission were to approve YB rate increase, the cost to ship that same vehicle would be approximately $434.'So far, public hearings have been held on Oahu and Hawaii island, with more Oahu businesses backing the shipping company for its reliable service. 'We absolutely support Young Brothers and believe its important for them to be in a financial stable position so they can have that consistency, quality, cadence that they've continued to have that's important for our companies as they move products across the state,' Meli James, co-founder of Mana Up told the PUC. But some think the rate hike shouldn't be passed onto the consumer and a double digit increase is too much. 'When they increase at this level its going to be a disruptive event for most families,' said one phone testifier. 'They're not going to realize the cost of their foods and goods coming into the island will increase at high levels they might not be able to afford.' Download the free KHON2 app for iOS or Android to stay informed on the latest news Written testimony from the Hawaii Floriculture and Nursery Association said it exports flowers and plants across the islands and has only one option to ship a high volume of palletized cargo. They wrote that they strongly oppose the rate hike during a time when businesses have not fully recovered from COVID, and the global situation with tariffs will ripple down to a few industries that can actually survive. 'It's very scary for a lot of businesses because we depend on a lot of imports from China, and we all know the prices are going to go up,' said Tina Yamaki, Retail Merchants of Hawaii president. 3 cases of rare brain disease reported in Oregon And the tariffs could be a double whammy for small businesses, especially on neighbor islands. 'A lot of them are they don't know how they're going to keep their doors open,' Yamaki added. The next PUC public hearing will be on Kauai, on April 14, at 5:30 p.m., at the Lihue State Office Building Conference Room 209. Maui's will be on April 30, at 6:15 p.m. at Puu Kukui Elementary School Cafeteria in Wailuku. And Lanai's will be on May 1, at 5:30 p.m. at the Lanai Senior Center. Molokai's is still to be determined. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
08-04-2025
- Business
- Yahoo
7 things to know about today's hearing to increase shipping in Hawaiʻi by 20-76%
HONOLULU (KHON2) — Young Brothers, LLC is a company that ships goods between each of our islands here in Hawaiʻi. They bring everything from shipping containers and cars to basic household items, and they have asked for a large price increase in shipping costs. And with Hawaiʻi depending on 98% of all goods coming from some place other than Hawaiʻi, most everyone relies on nearly everything being shipped in. Here's what you need to know: 1. Big price increase: Young Brothers is asking for a 27% increase in its shipping rates, which would add an extra $26 million in revenue. They claim this is needed to cover company costs like buying new barges and tugs to keep the service safe and reliable. 2. Inflation and rising costs: The company says the price increase is also needed because their operating expenses are rising and shipping volumes have not returned to the levels they were at before the COVID-19 pandemic. 3. Water Carrier Inflationary Cost Index (WICI): Young Brothers wants to use a new system called WICI. This will adjust shipping rates every year based on inflation, but it would be limited to a 5% increase each year to keep costs reasonable for customers. Click to read more about Hawaiʻi's Senate Bill 2756 that created WICI and to read more about Hawaiʻi's Senate Bill 21 that authorized public utilities to automatically implement WICI.4. Temporary rate increase: In addition to the big price hike, the company plans a Temporary Rate Increase starting in April 2025. This would be a 20% increase in rates that will be followed by another 5% increase in July 2025. 5. Specific Rate Increases: Some types of shipping will see large increases, such as: 45% increase for refrigerated cargo. 41.5% to 76.6% increase for minimum shipping charges. 35% increase for certain container shipments. 6. Specific rate increases by island: Here's a breakdown of how much shipping will increase for each island: Oʻahu to Hawaiʻi (Hilo and Kawaihae): 35% increase for most rates. Oʻahu to Kauaʻi (Nawiliwili): 35% increase for most rates. Oʻahu to Maui (Kahului): 35% increase for most rates. Oʻahu to Molokaʻi (Kaunakakai): 41.5% to 76.6% increase for some rates. Oʻahu to Lānaʻi (Kaumalapau): 35% increase for most rates. 7. Public input: The public can share their opinions about the price increases by writing or speaking at hearings. The Hawaiʻi Public Utilities Commission will review whether the increases are fair and reasonable. These are the public hearing dates, times and locations: Oʻahu Date and time: April 7 at 5:30 p.m. Location: Hawaiʻi Public Utilities Commission Hearing Room located at 465 South King Street, Room 103, Honolulu. Hybrid participation options: Online: Click here to join the meeting. Meeting number: 2551 520 6450. Password: 0255. Telephone dial-in: +1-650-479-3208. Access code: 2551 520 6450. Hawaiʻi Island in Kona Date and time: April 8, at 5:30 p.m. Location: Natural Energy Laboratory of Hawaiʻi Authority (NELHA) Hale Iako Building, Collaboration Area located at 73-970 Makako Bay Drive, Kailua-Kona. 96740 Hawaiʻi Island in Hilo Date and time: April 9 at 5:30 p.m. Location: Hawaiʻi Community College, Building 388, Rooms 101 and 102 located at1175 Manono Street, Hilo. Kauaʻi Date and time: April 14 at 5:30 p.m. Location: Lihue State Office Building Conference Rooms 209 A, B and C located at 3060 Eiwa Street, Lihue, HI 96766 You can click to read more from the Public Utilities Commission. Get news on the go with KHON 2GO, KHON's morning podcast, every morning at 8 This price hike will affect many types of shipping, and people are encouraged to comment if they have concerns. Will this motivate Hawaiʻi to consider long term investment in local production? Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
