Rate increase approved for Hawaii carrier Young Bros.
The Hawaii Public Utilities Commission has approved an overall 7.51 percent rate increase requested by Honolulu-based inter-island shipper Young Bros. Ltd.
Young Bros. received approval Oct. 12 to increase its rates on refrigerated containers, automobiles and straight load racks by 4.5 percent. Less-than-containerload cargo such as dry and refrigerated pallets will see a 15 percent rate increase. Dry containers of all lengths would see a 2.25 percent rate increase.
The firm told the Honolulu Star Bulletin that the rates should go into effect 'shortly.'
The approved increases will provide Young Bros. with $4.4 million, allowing it to earn its 2007 intrastate revenues requirement of $68.8 million.
In addition, the Honolulu-based shipper received permission from the PUC to automatically increase or decrease a rate fuel surcharge if the price of diesel fuel fluctuates up or down by more than 15 cents over the current per-gallon base level. The firm also said it plans to increase its minimum freight charge per bill of lading by 15 percent.
Young Bros. said the rate increase will go toward a 10-year equipment and fleet modernization plan — projected to cost the firm just under $190 million.
The company said it will acquire up to eight new barges, six tugboats, containers, cargo handling equipment, and freight information systems. Shoreside developments will involve harbor facilities in Honolulu, Kawaihae, and Kahului, and construction of a new Hilo pier.
Young Bros. is a wholly owned subsidiary of Marine Resources Group Inc., a holding and support company for investments in tug, barge and ancillary marine services companies
Rate increase approved for Hawaii carrier Young Bros.
