Young Brothers Increases Cargo Rates

Public Utilities Commission approves 5.5 percent zone increase.

The Public Utilities Commission (PUC) has approved Young Brothers, Limited’s application for a 5.5-percent zone increase on all cargo categories effective August 1. Under the PUC Decision and Order number 24139, the company has rate flexibility within a range, called a “zone of reasonableness.”

The proposed zone increase does not include or reflect the increased cost of fuel, which is covered in the company's separate fuel price adjustment. Young Brothers may request a zone of reasonableness rate increase once per year and may adjust fuel prices quarterly.

At the time of its application, Roy Catalani, vice president of strategic planning and government affairs for Young Brothers, noted that Young Brothers will maintain a “good value” for inter-island shipping.  With the rate increase, for example, shipping 2,000 pounds of locally grown cabbage (shipped via refrigerated pallet) will go from $59 to about $63, 2,000 pounds of frozen chicken will go from $85 to about $90, 40 cubic feet of canned goods (about 1,920 cans of soup) will go from $29 to about $31 and a 60-cubic foot pallet of beverages (about 495 six-packs) will go from $39 to about $41.

 “Young Brothers has kept increases to its operational expenses low despite cost pressures in many sectors,”said Catalani,in June when Young Brothers filed the application. “Among other things, we will pay higher labor costs in 2008 while we remain committed to our long-term $186 million capital reinvestment plan to develop and maintain essential transportation infrastructure.”

Reinvestment efforts include making substantial investments in vessels, containers, cargo handling equipment and information systems.

In 2008, Young Brothers will embark on several major customer service enhancements,
including placing into service its second and third new barges (with the fourth new barge coming
into service in 2009). These four state-of-the-art barges are expected to be in service over a period of 25 to 30 years and will be 40 percent larger than the older barges. The new barges have new, more fuel efficient hull forms that allow for increased cargo load and cargo growth without increasing fuel consumption for the towing tug and also will substantially reduce air emissions. These vessels are part of Young Brothers’ larger strategic plan that includes partnering with the state on plans to improve and create more efficient facilities in ports statewide.

Young Brothers, Limited provides inter-island cargo service throughout the State of Hawaii with ports in Honolulu, Kahului, Molokai, Lanai, Nawiliwili, Hilo, and Kawaihae. F or more information visit
Young Brothers at


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