Distributor says United A local produce distributor said yesterday that United Airlines planned to triple its rates to fly fresh fruits and vegetables to Hawaii next week because of the work shutdown keeping 29 ports on the West Coast closed. United later backed off the increase, he said.
tried to boost
freight fees
By Janis L. Magin
Associated PressMark Teruya, president of Armstrong Produce Ltd., said an e-mail sent from United Airlines to his freight forwarder in San Francisco outlined rate increases ranging from 75 percent to 300 percent, depending on the container size.
A 300 percent increase would boost the cost for one container size, listed as an LD7, to $5,000 from $1,800, he said.
Teruya later said his freight forwarder received a phone call from a United representative retracting the increases.
"It's a shame that they've taken advantage of this opportunity when Hawaii's in a crisis situation," Teruya said. "That's really sad."
A spokesman for United at the airline's Chicago headquarters said yesterday he could not confirm that the airline was boosting freight rates.
"To the best of my knowledge, we haven't made any increases," said United spokesman Jeff Green.
However, a different United spokesman told the Star-Bulletin the airline was raising prices.
"Our flights to Hawaii are pretty full. And with full flights and with the bags that go with the passengers, it's a supply and demand thing," spokesman Joe Hopkins said.
A copy of the United e-mail obtained by The Associated Press also said shippers would be charged 140 percent of the regular tariff, or about $1,770 per container, if it booked space as "must ride."
"Here we are stuck in the middle of the ocean, and we've got freight coming in by air and they want to jack it up," Teruya said. "That's not right."
United isn't the only carrier raising air cargo rates. United Parcel Service also said the rise in demand for shipping by air has prompted increases.
"We have seen an increase in the market prices for air freight in general," said UPS spokeswoman Lynnette McIntire. "They were at a premium because this is peak season and, within the last few days, the market prices for air freight have been going up because of increased demand for air shipments."
Star-Bulletin reporter Dave Segal contributed to this story.