Young Bros. new rates on its various inter-island cargo services took effect yesterday after receiving approval last week from the Public Utilities Commission on new tariff sheets. This follows PUC approval of an overall 7.5 percent increase in rates for
Young Bros. new rates on its various inter-island cargo services took effect yesterday after receiving approval last week from the Public Utilities Commission on new tariff sheets.
This follows PUC approval of an overall 7.5 percent increase in rates for its various inter-island cargo services throughout the state of Hawaii on Oct. 12.
“Young Brothers and the State Consumer Advocate came to an agreement on a 7.51 percent overall rate increase,” said Glenn Hong, President of Young Bros., according to a news release.
“Young Brothers agreed to this reduced rate increase despite the rising operational costs and the need for significant major capital investments in new tugs, barges, and cargo handling equipment. We are pleased the Public Utilities Commission approved our request for rates that are closer to reflecting current costs.”
The new approved rates include a 15 percent increase for LCL, or less-than-container-load shipments, although the break-even cost of this service would require a substantially higher increase.
“In response to the small business community concerns, Young Bros. has agreed to accept a lower increase in LCL rates and we have redesigned our overall rate structure to meet our requirements,” the release states.
The PUC approved other rate increases as well: dry containers rates will increase 2.25 percent and refrigerated containers rates will increase 4.5 percent as will automobiles and platforms.
A complete list of rates is available from Young Bros. at www.youngbrothershawaii.com.
The PUC approved the last rate change in September 2006.
Young Bros. also received approval from the PUC to apply a fuel surcharge similar to ones already in place for other members of the shipping industry. Young Bros.’ fuel surcharge will be adjusted in the future when the price of fuel rises or falls by 15 cents or more from the price reflected in its shipping rates.
The release states that over the next 10 years, planned investments to benefit customers include replacement of the majority of the tug and barge fleet, new containers and cargo-handling equipment and improved facilities.
