HONOLULU (KHON2) — The public will soon get to weigh in on a proposed rate increase by Young Brothers. The shipping company said it’s needed to cover significant costs.
Hawaii imports about $40 to $50 billion worth of goods, according to the state.
Young Brothers requests $26.3 million revenue increase
“Here in Hawaii, we have to have everything shipped in from the mainland. From there, it goes from the mainland shippers to the inter-island shippers,” stated Grant Sim, D. Otani Produce general manager. “There are limited options. If there were maybe more competition, maybe there would be, better pricing, but there’s not.”
Young Brothers is requesting a rate increase – an average of 20% for the majority of cargo. The company says the money would help cover operating costs and upgrades to its equipment and infrastructure. The company said it is navigating challenging economic conditions, including rising costs and lower cargo volume than before the pandemic. At the current rates, Young Brothers is projecting continued monthly losses that would total $17.8 million in 2025 without relief…