Unlike some of Hawai‘i’s other maritime carriers who have more flexibility to raise shipping rates, Young Brothers is a state-regulated water carrier and must first seek permission from the Hawai‘i Public Utilities Commission (PUC). Current customer rates were set in 2020. Since then, Young Brothers has faced a 17% increase in operational costs, cargo volume has remained below pre-pandemic levels, and we have made over $120 million in critical investments in our fleet and harbor infrastructure to more safely, reliably, and sustainably deliver services to our customers. On October 15, Young Brothers filed an application with the PUC to update customer rates in 2025. If approved by the PUC, rates for the majority of the cargo Young Brothers ships to Neighbor Island ports will increase by an average of approximately 20%, which is equivalent to an approximately 3.7% average annual increase over 2020 rates, slightly lower than overall inflation during that same period. The proposed increases in customer rates are driven by the cost to provide the type of service, factoring in the length of the journey and required cargo handling. For more efficient lines of service that require less cargo handling, rates will increase by 20 to 35%. Services requiring additional or special handling will increase by 35 to 45%. Young Brothers’ current rates treat cargo types and routes the same, even if that service requires significantly more labor or is a longer voyage. In June 2024, the PUC approved a new way of calculating Young Brothers’s costs and customer rates, factoring in the port location and type of cargo to more accurately capture the cost of transporting it to its destination. This new approach would ensure customers pay a fair representative share of the true cost of their services on a particular route. We are proposing several key changes to rates for more efficient services: Targeted rate increases would apply for freight requiring additional or specialized handling: We are committed to transparency and are dedicated to keeping you informed throughout this process. Public meetings will also be held in January 2025 to gather input from our customers and the communities we serve on O‘ahu, Hawai‘i Island, Kaua‘i, Maui, Moloka‘i and Lāna‘i, ensuring that your voices are heard as we navigate this important transition.Charting Course to a More Resilient Future with New 2025 Customer Rates
New Customer Rates Capture True Cost of Service