Young Brothers is the only inter-island freight carrier we got. Rates went up 25.75% on January 1.
That is the setup. Here is what it actually means for the people paying for it.
It shows up in your grocery bill first
Young Brothers moves nearly everything that stocks shelves on the neighbor islands. Produce, lumber, hotel supplies, restaurant ingredients, construction materials. There is nowhere else to go. When the rate goes up, the cost moves through the system until it lands on whoever is last in line. That is usually you.
Produce that ships twice before it hits your store is seeing an 8% to 12% retail price increase. Restaurant ingredients and supplies are up 5% to 8%. Heavy equipment and vehicles are up 10% to 15%.
Kauai and the Big Island feel it most
Oahu sees the least impact because most goods land there first. The further out you go, the worse it gets. Kauai has almost no local supply to fall back on. Big Island, particularly Hilo, is seeing some of the largest increases. Molokai and Lanai have almost no buffer at all.
"How much more can families take?" -- Kauai County Council Chair Mel Rapozo
Local businesses are getting creative
Aloun Farms has publicly discussed buying their own barge together with other businesses to get out from under the escalating costs. When an established Oahu produce operation starts talking about bypassing the only option we have, that tells you something about where things stand.
At the Aloha Stadium Swap Meet, vendors have been switching suppliers and sourcing closer to home wherever possible. Some are eating the cost. Others are passing it on.
The monopoly question
One carrier. No alternatives. When rates go up, businesses have no leverage and no place to go. The PUC approved it. The temporary 18% increase from before expired December 31 and this is what replaced it.
The uncomfortable part: even after an 80% rate increase over five years, Young Brothers is still losing money. That raises real questions about what comes next.
For Hawaii businesses that ship goods between islands or receive supplies from Oahu, browse the Hawaii Business Online shipping directory.