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Regulation

Temporary Rate Adjustment Approved to Support Interisland Shipping

The Hawai‘i Public Utilities Commission (PUC) has approved new temporary customer rates effective July 1, 2025, with all lines of service increasing by 18.1%. Additionally, the island agricultural product discount will increase to 32% for less-than-container-load cargo and 37% for straight-load containers.

These temporary rates will remain in effect until December 31, 2025, or until the effective date of any final rates established in a general rate increase (GRI) decision, whichever occurs first.

This temporary increase is a vital lifeline that will help stabilize Young Brothers’ operations and mitigate the mounting financial pressure we have faced while awaiting the PUC’s approval to recover costs and investments.

Why New Rates Are Needed

Young Brothers has not been profitable since October 2023. At 2020 rates and without the temporary rate increase, the company projected a net income loss of more than $31.5 million in 2025. With the temporary rate increase and absent approval of new permanent customer rates, we estimate a net income loss of over $22.5 million.

Since customer rates were last reset in 2020:

Operating costs have significantly increased
Cargo volume has not returned to pre-pandemic levels
Young Brothers has invested $120 million to improve the reliability of service, including new barges and tugs, customer equipment, vehicles in the shoreside fleet and Lāna‘i harbor infrastructure enhancements

What’s Next

Last October, Young Brothers filed a rate case with the PUC to adjust customer rates. If approved, the new proposed cost-of-service approach would better align customer charges with Young Brothers’ actual cost to provide the service based on location and handling needs. A final decision is expected before the end of 2025.

Learn More

To review Young Brothers’ proposals and updates related to our rate case, please visit the following resources. For the updated tariff, please visit: Local Tariff No. 5-A.

Mahalo for allowing us to move what matters most for Hawai‘i’s families, businesses and communities. We’re committed to keeping you informed and are working to schedule public meetings on Oʻahu, Hawaiʻi Island, Kauaʻi, Maui, Molokaʻi and Lānaʻi to ensure your voices are heard as we continue our 125-year legacy of service.