Rising Oil is Sinking Transportation
Jung and fellow intracounty operator Steve Knight of the Expeditions ferry are asking the state public utilities commission for permission to raise rates.
Young Brothers, Limited will increase its Fuel Price Adjustment (FPA) to 4.22 percent from 2.78 percent, as of June 3. The increase was initiated in response to fuel prices that have risen almost 44 percent since Young Brothers’ last fuel adjustment in March.
“Three months ago, diesel was at $2.90 a gallon; now it’s at $4.17. The rapid spike in fuel prices is driving the FPA; however, because the adjustment reflects the average fuel costs for the previous three-month period, it does not reflect the current cost of fuel,” said Roy Catalani, vice president of Strategic Planning and Governmental Relations for Young Brothers in a press release.
The 4.22 percent FPA will potentially add about 2 cents to the cost of shipping a 24-package case of saimin (shipped on a pallet of 90 cases) and about 1.5 cents to the cost of shipping a case of 24 cans of juice (shipped on a pallet of 110 cases).
Young Brothers, Limited provides inter-island cargo service throughout the State of Hawaii. For more information visit Young Brothers at www.youngbrothershawaii.com.