The cost of shipping food and other goods between the Hawaiian Islands is about to rocket up more than 25%, sparking dismay among some residents, farmers and business owners.
On Monday, the Hawaiʻi Public Utilities Commission unanimously approved a rate increase for Young Brothers, the state’s sole neighbor island barge service. As a result, costs on Jan. 1 will climb 25.75% to move essential goods across the state, from vegetables and livestock to vehicles and construction equipment.
The latest hike, which follows a 46% increase that state regulators approved five years ago, could bring some small businesses to a breaking point. As Aloun Farms President Alec Sou put it, the cost of moving food between the islands has become “discouraging to justify continuing to press forward.” It even has one major Kauaʻi producer contemplating buying a barge to ship melons, onions and sweet corn to Oʻahu markets.
The rate increase replaces the temporary 18.1% increase authorized in July as a stopgap measure to keep the company afloat while regulators considered the company’s request for a permanent rate hike…