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StarBulletin.com

Isle shipping to cost more


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POSTED: Thursday, July 30, 2009
                       
This story has been corrected. See below.

The state Public Utilities Commission has approved an average overall rate increase of 13.46 percent for Young Brothers Ltd.'s interisland cargo services starting Saturday.

For containerized cargo, rates will go up 9.66 percent. For automobiles, rates will go up 9.22 percent.

Rates for less-than-container-load cargo will go up 21.26 percent—which translates into 8 to 9 cents more to ship a 24-package case of saimin, for instance—except for Molokai and Lanai, where rates will rise 12 percent.

“;We recognize that our neighbor island customers depend upon reliable and frequent service, and we have taken the steps to ensure such service,”; said Glenn Hong, president of Young Brothers. “;We also recognize that customers share the same burdens with the economic recession. To respond to current economic conditions, we have taken measures to control and reduce costs, with all of the savings being passed on to our customers.”;

Farmers and ranchers will receive a 35 percent discount, up from 30 percent previously, for containerized cargo.

Young Brothers originally requested a 17.9 percent rate increase for interisland cargo shipments in December, which would have been the largest increase in the last 13 years for the company. This is the fifth straight year of rate increases for the company, which last raised rates in August.

Since 2006 Young Brothers has made more than $95 million in capital expenditures for four new, flat-deck barges.

The additional revenue will go toward new vessels and equipment, as well as to maintain services despite a drop in cargo volumes.

In 2008 Young Brothers experienced a 9.6 percent drop in interisland cargo and expects an additional 11 percent decrease this year. Still, the company plans to maintain 12 regularly scheduled weekly sailings to neighbor isles.

               

     

 

GETTING PRICIER

        Rate increases that go into effect Saturday:
       

 

       

       

                                                                                                                                                                                                                                                                                                                                                                                                                   
CategoriesChange 
» Containerized cargo+9.66%
» Automobiles, roll-on/roll-off cargo+9.22%
» Less-than-Container-Load (LCL) cargo+21.26%
» LCL cargo (Molokai and Lanai)+12%
» Average overall increase+13.46%

       

 

       

        Source: Young Brothers
       

 

       

Costly Cargo

        Young Brothers' most recent rate increases:
       

 

       

       

                                                                                                                                                                                                                                                                                                                                                                                                                                                               
200913.46%
20085.5%
20077.51%
20065.5%
20055.5%
2002*3.0%
19963.9%

       

 

       

        *For noncontainerized cargo
       

Source: State Department of Commerce and Consumer Affairs

       

 

       

               

     

 

CORRECTION

        » A chart that ran on Page 22 in Thursday's business section erroneously listed Young Brothers' rate increase in 2009 as 17.9 percent, which was the rate it initially requested. The rate approved by the state Public Utilities Commission was 13.46 percent, as was reported in the story. Also, a case of saimin would cost 8 to 9 cents more in a less-than-container-load cargo, and not for a containerized cargo, as stated in the story.